These countries have the best crypto tax laws: research

The digital asset exchange aggregator – Coincub – conducted a study to find out which countries offer the friendliest cryptocurrency tax policies to their citizens. Germany ranked as the world’s crypto tax haven, while Italy and Switzerland were second and third respectively.

Take a look at the opposite corner, Belgium is the worst nation for cryptocurrency taxation, followed by Iceland and Israel. Interestingly, India (where the government applies a 30% tax rate on income generated from digital asset activities) did not find a place in the top 5 in that statistic.

Germany leads the pack

The leading economy in the EU – Germany – has been in the spotlight on the cryptocurrency scene lately. A few months ago, the country’s Ministry of Finance said that the sale of Bitcoin and Ether will not be taxed if individuals hold the assets for more than a year.

Coincub estimated that the policy, combined with a number of other factors, took Germany to the first position when we talked about nations that use friendly tax laws for cryptocurrencies to citizens.

“Germany has a surprisingly progressive view on crypto tax. Overall, it has embraced the crypto tax situation and formalized it more than most leading countries. Having a very generous no tax on gains if your crypto is held for over a year seems to be perfect in line with a country whose population has a long tradition of saving as opposed to spending,” the entity stated.

The second position belongs to Italy, where residents do not have to pay taxes if the profit from cryptocurrency activities has not exceeded 51,000 dollars.

Third is Switzerland, where tax policy varies in each canton. However, residents of most areas are exempt from tax. Singapore and Slovenia round out the top five.

Coincub also revealed which are the worst countries for cryptocurrency taxation for residents. Belgium, where citizens receive 33% of the income generated from digital asset transactions, is first. Also, crypto profits considered as professional income can be taxed at up to 50%. Iceland, Israel, the Philippines and Japan are the other four nations on the list.

In April this year, Indian authorities enforced a 30% tax rate on locals who generate income from cryptocurrency operations. Despite that legislation, the world’s second most populous country did not rank among the worst crypto tax regions.

Germany emerges as a crypto hub

Earlier this year, Coincub conducted a new survey, estimating that Germany was the most crypto-friendly nation worldwide for Q1 2022. Its leading position was a result of the country’s “acceptance of cryptocurrency and pioneering decision” to embrace investment in the blockchain space , the organization explained.

An example of Germany’s pro-crypto stance is the Sparkasse (the largest domestic financial group) and its intention to offer digital asset services to its nearly 50 million customers.

The previous leader – Singapore – came second, while the strongest economy – the United States – held third place. Australia and Switzerland were fourth and fifth respectively.