The debate on Bitcoin and other cryptocurrencies is still on. Some countries are embracing the seemingly unstoppable wave of digital currency and coming up with laws and regulations for the industry, while others are considering banning cryptocurrencies altogether. The popularity of crypto is growing, with over 300 million people investing in cryptocurrencies and 18,000 businesses accepting digital coins as alternative currency across the world.
Notably, the taxation of cryptocurrency differs across countries. Countries have their crypto regulations. This is where most investors get confused. To what extent can you trade or invest in crypto in different countries? What levies will be charged to their capital gains made from selling crypto?
From Vanuatu accepting Bitcoin payment in exchange for citizenship- — a world first — to China, where all cryptocurrency transactions were banned, 2022 promises to be a great year for crypto investors.
Let’s explore 4 more countries (see this article for the first 4 countries on our list) that are crypto-friendly and tax havens for investors.
Singapore
While in Singapore, you will enjoy gains from political stability and the zero capital gain policy extended to cryptocurrency income. Moreover, the Monetary Authority of Singapore gives a grace period of six months where cryptocurrency companies can conduct their business without a license. This benefit is captured in the Payment Services Act.
More interestingly, the Singapore regulatory body often initiates crypto-friendly deals, such as the publication of initial coin offering (ICO) guidelines published in 2017. You would also want to note that you can use a wide variety of cryptocurrencies to pay for different services in Singapore.
Vanuatu
Are you a crypto investor who fancies a cool life on an island in the South Pacific Ocean? Vanuatu may be the ideal place you should move to in 2022. Vanuatu was the first country to accept crypto investments in exchange for citizenship. The country boasts of facilitating the fastest investment migration program under the Development Support Program (DSP), usually in less than 2 months, across the world.
The crypto regulations in Vanuatu are trader-friendly, which explains why most people are looking to migrate and invest in the country. For starters, you require a minimum capital of $50 and a physical office, with directors and people on the ground, and you will get a Financial Dealers License in just 3 months.
And you guessed it right; you will enjoy 0% tax on offshore profits.
Even better, investors are offered a Vanuatu passport with a validity period of 5 years.
Malta
Unsurprisingly, Malta has made it to this list. To many people, Malta is the “Blockchain Island” and one of the best countries for crypto investors in 2022. Although the local banks in Malta are still not up with the crypto idea, cryptocurrencies receive full support from the government.
Moreover, Malta has set up a friendly framework that guides companies and start-ups that deal with cryptocurrencies and blockchain technology. Robert Abela, the Prime Minister in Malta, has referred to cryptocurrency as the inevitable future of money.
The same spirit is extended to Malta’s taxation policies. All crypto-related dealings that are not part of trading get a tax exemption. Notably, income from day trading is subject to a 35% business income tax.
If you consider moving to Malta to grow your cryptocurrency investment, there is even better news. You can apply for the golden visa, also known as Maltese Citizenship by Naturalization for Exceptional Services by Direct Investment. With the program, you pay some amount, usually not less than 600,000 EUR, with the option to make a donation or invest in real estate. While at it, you will travel to 180 countries visa-free, the best news for a crypto investor, right?
Cyprus
Although Cyprus does not have a legal framework to regulate cryptocurrency, the country is home to many blockchain and cryptocurrency start-ups. ICOs, casinos, and other crypto-based businesses have succeeded in Cyprus.
Importantly, no tax is levied on the profit earned from trading crypto in Cyprus. Even better, VAT is also not levied. You may also want to know that Cyprus imposes a 12.5% corporate income tax, the lowest in the EU region.
And to take care of your stay, you will need to buy real estate worth $300,000 to get a resident visa in Cyprus.
Cryptocurrency uptake has increased tremendously over the years. The variation in regulations and tax policies in different countries shows that digital currency is indeed a global phenomenon. Gather all the information you need and pick the best country for your cryptocurrency investment.
No matter where you live, be sure to know your country’s legislation and, most importantly, if you’re looking for the best trading experience, let Your Friendly Crypto Exchange help you on your journey. Register now on IXFI to begin.
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