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Researchers identify countries with the most cryptocurrency-friendly tax policies

by Chief editor

Coincub conducted a study to find out which countries offer the most cryptocurrency-friendly tax policies for their citizens. Germany came in first place in the ranking of countries with the most tax-friendly policies for cryptocurrency investors, with Italy and Switzerland coming in second and third, respectively.

Belgium was ranked as the country with the strictest taxation policy for cryptocurrency income, with slightly less strict laws in Iceland and Israel. Interestingly, India (which has a 30% tax on income derived from digital asset activities) did not make it into the top 5 in these statistics.

A few months ago, the German Ministry of Finance (BMF) said that individuals would not have to pay tax on the sale of BTC or ETH if they held these assets for more than a year.

“Germany has a surprisingly progressive outlook. It has generally taken the cryptocurrency tax situation and formalised it more than most leading countries. The fact that very generously no income tax is levied if a cryptocurrency is kept for more than a year seems appropriate for a country whose population has a long tradition of saving rather than spending,” Coincub analysts said.
In Italy, residents do not have to pay taxes if their cryptocurrency profits do not exceed $51,000.

In Switzerland, the tax policy differs in each canton. However, residents of most cantons are exempt from tax. Singapore and Slovenia offer fairly lenient tax laws.

In Belgium, citizens are charged a 33% tax on income from digital assets transactions. Moreover, profits from cryptocurrencies, considered as professional income, can be taxed up to 50%. Making money from cryptocurrency is also not very profitable in Iceland, Israel, the Philippines and Japan.

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