Are you wondering which are the Best Countries for Crypto in 2023?
For both crypto traders and crypto investors, choosing the best country for keeping more of your gains should be a crucial matter, in this article, we will go through some of the most crypto-friendly countries in 2023.
Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
What Is a Crypto-Friendly Country?
Some countries make life really hard for crypto traders and/or investors, high taxes, a lot of regulations, restrictions, and banned cryptocurrency exchanges, are some of the elements that make some countries undesirable.
On the other hand, some countries have no regulations on cryptocurrencies, and some don't tax your gains and allow you to use most crypto exchanges.
Taking into consideration all these elements along with the general living standards of each country, we've drafted a list of the top 10 countries for crypto traders and/or investors.
Please keep in mind that regulations are constantly changing and you should consult with a knowledgeable tax adviser before making any serious decision based on this article.
Check out our Top 5 List of the Best Countries for Crypto below!
1. El Salvador
The Central American nation’s legislative body approved the so-called Bitcoin Law, which made the digital currency the nation’s official legal tender, along with the US Dollar, in early June 2021.
Bukele, El Salvador's president, who has passionately touted Bitcoin on social media and in public speeches, was the major force behind making El Salvador the first country in the world to adopt Bitcoin as a legal currency.
Other exciting Bitcoin-related projects such as Volcano bonds, and Bitcoin City, will also become a reality in the near future!
Portugal is extremely welcoming for anyone dealing in crypto, authorities have waived all taxes on cryptocurrency trading and transacting, and individuals do not have to pay capital gains tax or value-added tax (VAT) when buying or selling cryptocurrencies.
On top of that, Portugal offers a 10-year tax break on all foreign earned income for foreigners who move to the country, getting a Golden Visa is also fairly easy for six and eight-figure individuals.
The cost of living in Portugal is very low, with about €2000 per month you'll live a very comfortable life, the weather is nice, the food is great, most people speak some English, and you'll be able to enjoy visa-free travel to many countries, the country's location is strategic.
Finally, if you'd like to invest in real estate, you're bound to find some great deals.
Portugal's major drawback is the inherent bureaucracy and corruption that plague most government-operated sectors, customer service, in general, is also fairly poor and slow when compared to western standards.
Germany does not tax cryptocurrencies held for over a year, this means that if you buy cryptocurrencies and sell them after a year has gone by, no taxes will be applied.
If you decide to sell your cryptocurrencies before a year has gone by, you will only be taxed if a single sale exceeds €600, this can be easily avoided by performing multiple sales.
Germany regards cryptocurrencies as private money, contrary to the widespread view in most developed countries, which look at crypto as a currency, commodity, or equity.
In 2021, a new law came into force that effectively killed crypto derivatives trading in Germany, as of now, losses can no longer be deducted. The legislation reflects moves across Europe to regulate derivatives.
The cost of living in Germany isn't exactly cheap, but considering the quality of life you'll have, it's definitely worth it.
Switzerland does not tax individuals that buy, sell or hold cryptocurrencies for personal benefit, that being said, income from crypto mining is considered self-employment income and is taxed through income tax.
Lugano has also made Bitcoin legal tender, and you can even pay your taxes with it!
It’s no surprise that Switzerland, home to “Crypto Valley”, has one of the most forward-thinking tax policies in the world.
Laws in each canton differ greatly and you should check every local regulation before choosing where to settle.
The fact that Switzerland isn't part of the draconian rule of the European Union and has one of the last true direct democracies in the world makes it a great choice for freedom lovers.
The cost of living in Switzerland is very high and this is the major drawback.
Bermuda has no taxes on income or capital gains, therefore, crypto transactions are tax-free. What’s more, any taxes incurred can be paid with Circle’s USDC.
The cost of living in Bermuda is extremely high and daily life is very family-oriented, it is a wonderful place to visit as a tourist, but if you decide to live there, you may find it hard to fit in as expats are sometimes frawn upon.