Cryptocurrency Tax Global Map

Cryptocurrency capital gains are taxed at the same rate as Federal and Provincial Income Tax.

Individuals holding digital assets are required to pay tax on 50% of their total capital gains, while professional (day) traders pay tax on 100% of their gains. Up to 50% of crypto capital losses can be used to offset capital gains.

Ordinary income tax applies to earned cryptocurrency (including staking and mining), determined by the fair market value at the time of receipt. The action of selling, trading crypto for another crypto, or using it for purchases, triggers capital gains tax.

Crypto is taxed as a commodity and considered either business income or capital gains.

Germany has some of the most crypto-friendly tax laws.

Selling or trading (disposing) cryptocurrency after one year is entirely tax-free in Germany. An investor is also not taxed if the short-term capital gains are under €600. You only need to pay taxes if you earn over €600 in short-term capital gains in a year or receive cryptocurrency income.

Short-term crypto gains and income are taxed at your individual Income Tax rate. Workers in Germany receive a tax-free allowance of €10,908. For those earning more than €10,908, a 5.5% solidarity surcharge applies.

In France, cryptocurrency gains are only taxed when converted to fiat currencies or used for purchasing goods and services.

Trades between cryptocurrencies are not taxed. Gains become taxable if the total trade value exceeds €305 annually and it is then subject to a 30% flat tax. Although the General Tax Code (Article 150 VH bis) specifies that trading less than €305 worth is not taxed, it must still be reported.

The amount of tax on crypto investment depends on the transactions, total annual income, and classification as an investor. Gains from disposals of crypto may be taxed at up to 30% for occasional traders under the flat tax (PFU) or as non-commercial profits (BNC) and taxed up to 45% for professional traders under new guidance (formerly BIC tax). Crypto mining rewards are also considered non-commercial profits and subject to income tax of up to 45%, although smaller mining operations with a turnover of less than €77,700 for 2023 may benefit from the micro-BNC tax treatment.

In Ireland, capital gains from cryptocurrency are subject to a standard tax rate of 33%. The first €1,270 of capital gains being tax-exempt. If you earn cryptocurrency as income (such as through a job), it is taxed at your applicable income tax rates. Additionally, you will be liable for the Universal Social Charge (USC) on your gross income if it exceeds €13,000. Once income surpasses this threshold, investors will be subject to a specified percentage on all income, including earnings from the job and any gains from cryptocurrency and other assets. Selling cryptocurrency is considered a taxable disposal in Ireland. The rate will depend on the the value of the cryptocurrencies originally purchased or received.

Under a source tax regime, crypto is only taxed on proceeds and profit not the assets. There is also a transaction tax, but investors are not taxed for just holding the cryptocurrency.Since Slovenia joined the European Union in 2004, its tax system has increasingly aligned with EU standards.

The government has created a regulatory framework for crypto assets, established legal exchanges, and implemented measures to protect investors and foster innovation in the crypto sector.

Regulatory policies for crypto assets in Slovenia began in 2013. The central bank issued guidelines requiring financial institutions to regulate transactions involving crypto assets. To comply with the EU’s anti-money laundering and anti-terrorist financing rules and ensure market security and transparency, Slovenia adopted ZPPDFT-2, mandating real-name authentication and transaction reporting for crypto assets.

In 2019, Slovenia introduced a source tax regime, taxing only the proceeds from crypto assets rather than the assets themselves. The tax rate, which can reach up to 25%, varies based on the nature and source of the proceeds. Additionally, a transaction tax of 0.25% is imposed on all crypto asset transactions. Slovenia allows taxpayers to offset crypto asset losses against taxes on other income.

Switzerland is generally very crypto-friendly. For private investors, buying and selling cryptocurrency is usually tax-free.

The Swiss Federal Tax Administration (FTA) does not categorise cryptocurrency as legal tender like the Swiss Franc (CHF). It is defined as an asset, specifically referred to as a crypto-based asset or “kryptobasierte vermögenswerte.”

For private investors, holding and selling cryptocurrencies are generally tax-exempt, meaning no pay Capital Gains Tax (CGT) on the profits. This exemption applies to individuals who hold crypto as part of their private wealth and trade occasionally.

Commercial traders and businesses are classified as a retail trader if crypto trading are the primary income source,. The crypto profits are then subject to CGT at up to 7.8% plus approximately 10% towards old-age and survivors insurance.
To qualify for this tax benefit when selling or trading crypto, investoes must have held the crypto asset for a minimum of six months, turnover must less than 5 times the holding at the start of the financial year, the net capital gain must be below 50% of the total income for the financial year, crypto investments must not be used to avoid debt financing and using derivatives must be exclusively for hedging purposes.

If an investor sells crypto for more than they bought it, they will be required to pay Capital Gains Tax (CGT) on the profit, depending on the amount. If losses are incurred, those losses can reduce the CGT bill. Trading cryptocurrencies for other cryptocurrencies can trigger a capital gains taxable event.

Large trades can be classified under ‘exceptional circumstances,’ and HMRC (Her Majesty Revenue & Customs) might require you to pay Income Tax instead of CGT. Those paid in cryptocurrency will need to pay income tax and national insurance (NI) contributions on the cryptocurrency payments.

For inherited or gifted cryptocurrency, HMRC treats cryptocurrency as property under UK tax law; subject to inheritance tax rules. To be considered ‘trading,’ one needs to buy and sell crypto assets with the intention and frequency that amounts to a financial trade. If a trader meets this threshold, the net profits will be subject to income tax at rates of 20%, 40%, and 45%, depending on the income bracket, and national insurance at 10% and 2%.

Under its existing law, in the Belarusian High Technology Park (HTP), investors in Belarus and those working with crypto and digital currencies pay no taxes.

HTP offers investors a special and unique tax and legal regime in Belarus and allows registered companies to partake in the tax-friendly benefits, irrespective of their Belarusian office location (they don’t need to be registered in the technological region of the country).

Key tax advantages for HTP residents include a reduced income tax rate of 9%, payments to the National Social Security Fund (NSSF) based on the state’s average salary, and exemptions from income tax and VAT, replaced by a 1% gross profit payment to the HTP Administration.

In Georgia, individuals are exempt from income tax on profits from crypto sales.

According to a 2019 decision by the Georgian Ministry of Finance, crypto is not “sourced” in any specific geographical location, so it falls under the 0% tax on capital gains from crypto trading. For legal entities, such as LLCs, any profit from crypto trading is subject to a 15% Corporate Income Tax and a 5% personal Dividend Tax at the time of distribution.

The country does not impose an annual profit tax; taxes are only applied when profits are distributed (Georgian Tax Code Articles 97(1)(a) and 130(1)). Owning and trading crypto is legal in Georgia. Individual traders generally have a 0% tax rate on gains, with certain exceptions. For corporations, profits from crypto are subject to a 15% corporate tax.

In Malaysia, crypto transactions are generally tax-free. Digital assets are not considered capital assets or legal tender by Malaysian authorities and individual investors are not required to pay taxes on crypto transactions.

The Malaysian Inland Revenue Board does specify that tax exemptions apply only to non-regular transactions. For traders and frequent investors, there is a tax on crypto activities. For businesses, profits gained from crypto are subject to Income Tax, whether the profits are in crypto or fiat currency.

The LHDN guidelines state that crypto will be taxed only if used in business or trading transactions, where the business’s primary activities and operations occur in Malaysia, or if the business has a presence in the country.

Puerto Rico offers an extremely favourable tax environment for crypto investors. The country eliminates capital gains taxes for qualifying residents.

Under ACT 60 (previously known as ACT 22) resident crypto investors receive a tax exemption if they meet specific criteria. This is a 0% tax rate on capital gains for qualifying bona fide residents.

Puerto Rican corporations face only a 4% federal income tax. Because of the favourable tax policies, it has become a popular destination for US taxpayers looking for lower taxes.

Many crypto investors and companies have moved to the United Arab Emirates due to its favourable tax policies and clear regulations.

Dubai and the UAE offer significant tax advantages for cryptocurrency investors, including 0% personal income tax and capital gains tax. This applies to gains from cryptocurrency disposals, staking, and mining for individuals.

It is important to note that to be considered a ‘tax resident’ of Dubai, you must spend at least 183 days of the year there.