Canada
Canada treats crypto as a commodity for tax purposes, which means lower tax rates and greater clarity in how taxes are reported. The country is also a hub for blockchain innovation and Vancouver is well-known for having a strong Bitcoin community.
El Salvador
The small Central American country made history in 2021 by adopting Bitcoin as legal tender. While the move drew widespread criticism, it undoubtedly made El Salvador one of the most crypto-positive countries in the world.
Estonia
Cryptocurrencies are exempt from VAT in this Baltic state. Estonia also runs an e-Residency program that lets people establish a company remotely, thus attracting Web3 entrepreneurs from all over the world.
Sign up to our weekly MoonPay Minute newsletter
Germany
Besides the fact that many Web3 startups are based in Berlin, Germany boasts some of the most favorable tax regulations for cryptocurrencies. It also has the second-most Bitcoin nodes in the world (behind the USA).
Japan
Japan has proactively regulated crypto, thus providing much-needed transparency for investors. As CoinDesk’s Emily Parker argues, “crypto-friendly does not mean crypto-easy.” While Japan’s regulations are tough, they’re also clear.
Malta
The Maltese government passed three laws in 2018 that created a clear regulatory framework for crypto, thus attracting a wave of new businesses (including Binance). Aside from its policies on crypto and blockchain, Malta (aka “Blockchain Island”) is well-known for its tax-friendly environment.
Netherlands
The Netherlands is home to a vibrant crypto scene, with Amsterdam hosting several crypto conferences like Dutch Blockchain Week, ETHAmsterdam, and Bitcoin Amsterdam. The country’s monetary authority, De Nederlandsche Bank (DNB), has also actively engaged with the crypto community.
Portugal
Often called the “Silicon Valley of Europe”, Portugal attracts crypto investors with its Non-Habitual Resident (NHR) program and offers tax benefits for cryptocurrency income. Lisbon also has one of the highest rates of developers per capita in Europe.
Singapore
The Southeast Asian city-state, well-known as a tax haven, boasts a clear and progressive regulatory framework for cryptocurrencies. Singapore also encourages blockchain innovation and offers licenses for crypto exchanges and ICOs.
Slovenia
Home to Blockchain Alliance Europe, which connects Europe’s blockchain community, Slovenia (and particularly its capital Ljubljana) has become a hotbed for crypto. The country boasts 1,333 retail businesses where crypto is accepted as payment, and its government offers residency permits for crypto entrepreneurs.
United Arab Emirates
Crypto investors in Dubai pay 0% income tax. The UAE’s government has also been proactive in making the country a hub for blockchain innovation. While Dubai and Abu Dhabi are spearheading these efforts, other emirates like Sharjah and Ras Al Khaimah aren’t far behind.
Switzerland
Swiss Banks were among the first in the world to accept BTC and ETH custody for clients. The city of Zug is also home to hundreds of crypto startups including Cardano, Solana, and Polkadot, earning it the moniker “Crypto Valley”.
Nothing contained herein is intended to be, nor should it be construed as, tax or legal advice.
Subscribe to our newsletter!
Did you like this article? Sign up to our weekly MoonPay Minute newsletter to get similar content delivered directly to your inbox.