Digital asset exchange aggregator Coincub conducted a study to determine which countries offer the most cryptocurrency-friendly tax policies for their citizens. Germany has emerged as a global tax haven for cryptocurrencies, with Italy and Switzerland coming in second and third respectively.
Looking at the opposite angle, Belgium is the country with the worst cryptocurrency taxes, followed by Iceland and Israel. Interestingly, India (where the government levies a tax of 30% on income generated from digital asset activities) did not make it into the top five in this statistic.
Germany leads the group
The main economy of the European Union, Germany, has been in the spotlight of the cryptocurrency scene lately. A few months ago, the country’s finance ministry said that the sale of bitcoin and ether would not be taxed if people held assets for more than a year.
Coincub believes that this policy, combined with many other factors, has placed Germany at the forefront of countries enforcing cryptocurrency-friendly tax laws for residents.
“Germany has a remarkably progressive view of the cryptocurrency tax. He generally covered the cryptocurrency tax situation and formalized it more than in most major countries. Having a very generous income tax if your cryptocurrency is held for more than a year seems ideal for a country whose population has a long tradition of saving rather than spending,” the organization said in a statement.
The second position belongs to Italy, whose residents are not required to pay taxes if their income from cryptocurrency activities does not exceed $51,000.
Third, Switzerland, where tax policy varies from canton to canton. However, residents of most regions are exempt from paying taxes. Singapore and Slovenia round out the top five.
Coincub has also revealed which countries are the worst for cryptocurrency residential taxes. Belgium, where citizens earn 33% of their income from digital asset transactions, ranks first. In addition, income from cryptocurrencies considered professional income can be taxed up to 50%. Iceland, Israel, Philippines and Japan are four other countries on this list.
In April of this year, the Indian authorities introduced a tax rate of 30% for premises that generate income from cryptocurrency transactions. Despite this legislation, the second most populous country in the world does not rank among the worst regions with crypto taxes.
Germany becomes a crypto center
Earlier this year, Coincub conducted another survey and found that Germany was the most cryptocurrency-friendly country in the world in the first quarter of 2022. Its leading position was the result of the country’s “cryptocurrency adoption and innovative solutions.” attract investment in the blockchain space, the organization explained.
An example of Germany’s stance on cryptocurrencies is Sparkasse (the largest national financial group) and its intention to provide digital asset services to almost 50 million customers.
Former leader Singapore was second and the strongest US economy was third. Australia and Switzerland came in fourth and fifth respectively.
Binance Free $100 (Exclusive) – Use this link to sign up to get $100 free and 10% off your first month of Binance Futures. (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.