Digital asset exchange aggregator Coincub conducted a survey to determine which countries offer the most cryptocurrency-friendly tax policies for their citizens. Germany ranked as the global crypto tax haven, while Italy and Switzerland took second and third place, respectively.
Looking in the opposite corner, Belgium is the worst country for crypto taxes, followed by Iceland and Israel. Interestingly, India (where the government levies a 30% tax rate on income generated from digital asset activities) did not rank in the top 5 for this statistic.
Germany leads the group
The European Union’s main economy, Germany, has recently been in the spotlight on the cryptocurrency scene. A few months ago, the country’s Treasury Department said Bitcoin and Ether sales would not be taxed if people held the assets for more than a year.
Coincub believe that this policy, coupled with many other factors, has placed Germany at the forefront of countries applying cryptocurrency-friendly tax laws to residents.
“Germany has a surprisingly progressive view of the cryptocurrency tax. It has generally embraced and more formalized the crypto tax situation than most major countries. Having a very generous income tax if your crypto is held for more than a year seems to be perfectly in line with a country whose population has a long tradition of saving rather than spending,” the entity said.
The second position belongs to Italy, where residents do not have to pay taxes if their income from cryptocurrency activities does not exceed $51,000.
Third, Switzerland, where tax policies differ from canton to canton. However, residents of most regions are exempt from paying taxes. Singapore and Slovenia complete the top five.
Coincub also revealed which are the worst countries for resident cryptocurrency taxes. Belgium, where citizens receive 33% of their income generated by digital asset transactions, is the first. In addition, crypto income that is considered professional income can be taxed up to 50%. Iceland, Israel, the Philippines and Japan are the other four countries on this list.
In April of this year, Indian authorities enforced a 30% tax rate on properties that generate income from cryptocurrency operations. Despite this legislation, the second most populous country in the world is not 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 crypto-friendly country in the world for the first quarter of 2022. Its leadership position was the result of “crypto adoption” currencies and innovative decisions” by the country. investments in the blockchain space, the organization explained.
An example of Germany’s stance on cryptocurrency is Sparkasse (the largest national financial group) and its intention to bring digital asset services to its nearly 50 million customers.
Former leader Singapore came in second, while the strongest economy, the United States, came in third. Australia and Switzerland were fourth and fifth respectively.
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