These countries have the best crypto tax laws: research
Digital asset exchange aggregator – Coincub – conducted a study to find out which countries offer the most cryptocurrency-friendly tax policies to their citizens. Germany ranked as the global crypto tax haven, while Italy and Switzerland were second and third respectively.
Looking in the opposite corner, Belgium is the worst country for cryptocurrency taxation, followed by Iceland and Israel. Interestingly, India (where the government imposes a 30% tax rate on income generated from digital asset activities) did not find a top 5 spot in this statistic.
Germany in the lead
The main economy of the European Union – Germany – has recently been in the spotlight on the cryptocurrency scene. A few months ago, the country’s finance ministry said the sale of Bitcoin and Ether would not be taxed if individuals held the assets for more than a year.
Coincub valued that politics, combined with many other factors, has put Germany first when it comes to countries that apply cryptocurrency-friendly tax laws to residents.
“Germany has a surprisingly progressive view of the crypto tax. Overall, it has embraced the tax situation of crypto and formalized it more than most major countries. Having a very generous no-tax on gains if your crypto is held for more than a year seems to be perfectly in line with a country whose population has a long tradition of saving rather than spending,” the entity said. .
The second position belongs to Italy, where residents do not have to pay taxes if their profits from cryptocurrency activities have not exceeded $51,000.
Third, Switzerland, where tax policies vary from canton to canton. Residents of most areas, however, are tax exempt. Singapore and Slovenia complete the top five.
Coincub also revealed which are the worst countries for taxing cryptocurrencies for residents. Belgium, where citizens are criticized with 33% of their income generated by digital asset transactions, is the first. Additionally, crypto profits considered business income could be taxed up to 50%. Iceland, Israel, the Philippines and Japan are the other four nations on this list.
In April this year, the Indian authorities forced a 30% tax rate on locals who generate income from cryptocurrency operations. Despite this legislation, the second most populous country in the world has not been placed among the worst crypto tax regions.
Germany Emerges as a Crypto Hub
Earlier this year, Coincub conducted another research, estimating that Germany was the most crypto-friendly nation across the globe for Q1 2022. Its leadership position was the result of “accepting the cryptocurrency and the country’s groundbreaking decision to embrace investments in the blockchain space, the organization explained.
An example of Germany’s pro-crypto stance is Sparkasse (the largest national financial group) and its intention to to bring digital asset services to its nearly 50 million customers.
The former leader – Singapore – was second, while the strongest economy – the United States – was in third place. Australia and Switzerland were fourth and fifth respectively.
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