Crypto Taxes

A really important aspect that anyone has to address when owning crypto is managing their taxes because if neglected, it poses a threat of serious fines. Of course, when dealing with small amounts, you might be tempted to either include everything on the tax report or think, "What the hell, I'm not putting anything; let them try and take data from decentralized entities." However, when dealing with large sums and actively trading, you might want to consider the best place to potentially minimize taxes on your crypto. If you have enough money, you can become a global citizen and explore places that offer zero taxes on your crypto.

Let's examine the tax rates in different countries.

Zero Tax

Antigua & Barbuda
Bahamas
Belgium
Bermuda
Cayman Islands
El Salvador
Georgia
Germany
Indonesia
Luxembourg
Malta
Panama
Portugal
Seychelles
Singapore
Switzerland
Taiwan
U.A.E
On this list, there are well-known tax havens in the Caribbean islands that are targeted by tax authorities worldwide. Countries in Asia, like Singapore, are excellent destinations, especially for those residing in Asia. Now, let's discuss Europe. Malta is also a known tax haven, while Portugal will introduce significant tax changes regarding crypto soon. Additionally, Germany and Luxembourg, specifically Germany, offer zero tax on crypto held for over a year. Germany, being a top 5 GDP country and the leading economy in Europe, is a good place to consider for taxing your crypto, particularly if you are European. Lastly, there is the U.A.E and Dubai, actively trying to attract crypto companies and become a crypto hub. If you own a company, the U.A.E is a good place to start, but it also attracts some undesirable attention.

Low Tax Range:
In this category, countries tax crypto up to 15%. While there is a list available, I would like to focus on Greece, as it is my country. For anyone wanting to tax their crypto, purchase a house, and apply for a visa in a European country, Greece imposes a 15% tax rate on crypto.

High Tax Rate:
Japan has a crypto tax rate of 45%, and Iceland has a crypto tax rate of 46%. It's advisable to avoid these countries due to the high tax rates.

Ban:
In these countries, owning crypto is illegal.

China
Pakistan
Vietnam
USA

The U.S. has a unique tax system with federal taxes that everyone must pay. Additionally, there are state taxes, with states like Florida having a 0% crypto tax rate. Puerto Rico has its own tax laws, and although it is not an official U.S. state, residing there makes you a U.S. citizen.

Now, the big question remains: crypto is something that, at this point, is easy to avoid taxing, especially if you are not using centralized exchanges. However, if you are using them, you probably have to pay taxes. On the other hand, if you exclusively use decentralized exchanges to conduct your business, then why should you be required to pay taxes on them? Each person may have a different answer, but if you have a significant amount, you can conduct research and consider taxing them in countries like Germany, where the tax rate is 0 percent. I don't know if you might have to live there for some months per year to avoid any problems, or you could try to find people willing to buy your crypto over-the-counter (OTC) with cash, which is the best option.

If you want to read more about how each county taxes crypto this is the place to do it PLACE

Posted Using InLeo Alpha