These are decentralized digital assets by nature and are not issued or controlled by a higher authority or any government. It operates entirely on an independent network.
As a cryptocurrency holder or investor, you would not like to sell them off if you want to immigrate to a different country. Instead, you will want to bring it along with you so that you do not lose on the inherent benefits that it offers.
The benefits include:
- It allows easy accessibility as these operate through a unique technology as well as its ever-growing adoption rate which allows using it across thousands of outlets all over the world
- It has a lower transaction cost in comparison to traditional money since there are no intermediaries to affect the direct payments with a cost added to it for availing third-party service
- It offers the ability to make payments almost instantaneously from a digital wallet without needing to visit a bank
- It lowers risks and fraud rate due to the complex blockchain technology which is difficult to hack or compromise and
- It offers transparency and allows anyone to view the funds along with additional accountability and security.
However, not all countries and jurisdictions can see or admit these potential benefits of digital assets and are skeptical about them.
Therefore, you will need to choose a country that supports digital assets and are accessible to it before migrating.
5 Best Crypto Friendly Countries 2021
It is also needed to make sure that the country also supports other promising innovations related to blockchain technology. This has the potential to change the world economy, as you see it today, in the near future.
With so many countries in the world and not all of them supporting cryptocurrency transactions and payments, it will be hard for you to find one to immigrate to.
Here is the list of top five countries in the world that are favored by the crypto investors since they are accessible to the digital assets in all its available forms.
This is one of the most popular countries that support cryptocurrencies and is favored by the crypto investors.
A lot of such investors want to migrate to Portugal due to one of the most significant attitudes of this crypto-friendly country.
However, on the other hand, all these exemptions of taxes are not applicable to any businesses that are involved in any sort of activities related to crypto coins. These include:
As per the rule of the government of Portugal, taxes on these businesses will be levied at the normal rate of 21% on the whole income.
However, there are a few things to keep in mind and consider seriously before you fly to Portugal so that you have a pleasant experience of its tax treatment for individuals involved in crypto trading.
It is that you should qualify to avail such tax exemptions. You can do this by making an investment on a piece of land or real estate of 500,000 Euros.
There is also a relatively cheaper option available of course which is to make an investment in an urban area of worth 350,000 Euros.
These areas should be the ones among a number of European Golden Visas programs.
The Republic of Singapore, or simply Singapore, is a self-governing island city-state located in maritime Southeast Asia.
People all over the world give this country a higher rank based on different parameters which includes and does not limit to its political stability and medical facilities. It is also known for its acceptance and support for cryptocurrency.
Singapore is one of those few countries that follow a unique Zero Capital Gains Policy when it comes to income from cryptocurrency investments.
Another unique feature of this country related to its crypto accessibility is that The Monetary Authority of Singapore allows a few cryptocurrency companies to operate here without even needing a license for it.
However, this is allowed for a grace period which is usually up to 6 months and is approved according to the most recent Payment Services Act.
There are also a lot of other good and significant crypto-friendly initiatives taken by the regulatory body of the country which makes it so popular among the crypto investors wanting to migrate.
However, the most interesting fact that makes Singapore even more alluring to the crypto investors and even the users is that you can use the Bitcoins and other crypto coins at several merchant outlets in the country.
Therefore, if you have crypto holdings and are looking for a great place in the world to retire or start a business with no stringent tax obligations, Singapore is one of the best countries that you should be interested in.
Malta is a nation that is well known for its numerous historic sites that relate to the Romans rulers, the Moors, The French, The British, and Knights of Saint John.
It is also well known for its several fortresses and megalithic temples as well as its support for cryptocurrency.
It will not be exaggerating even by an iota if it is said that Malta is one of the most popular countries in the world that support cryptocurrencies.
There are lots of offers to explore in Malta if you are keen on making an investment in BTC.
However, it is good to check out on their terms and conditions first before you start investing. One significant regulation for the day traders is that it is mandatory for all of the Day Traders here to pay a business tax of 35% on their whole income.
There is a good thing about their regulation, on the other hand, especially in terms of tax exemption. You will not have to pay any taxes if any or all of your crypto-related transactions are not considered to be a part of trading.
The best way to move into Malta and carry on with your crypto ventures here is by applying for the Malta Citizenship.
You can do so through an investment program. These programs are one of its kind in the European Union, though a bit costly with the starting value being 600,000 Euros.
You have two options for investing here. One is in real estate and the other is by donating to any registered program.
If you love to live on an island, and also want it to support cryptocurrency payments and transactions, you may try Vanuatu. Located in the South Pacific Ocean, this island country is in Oceania.
Made of about 80 islands dispersed on the waters and spanning for about 1,300 kilometers, this is one of the greatest places for scuba diving in the coral reefs looking for underwater caverns and shipwrecks such as that of the WWII troopship SS President Coolidge.
This island country is also very well known for its support to cryptocurrencies. However, there are a few unique aspects of it as well other than that and with respect to cryptocurrencies that you should know. These are:
- It is supposed to be the first country, and the only one, to accept BTC coins in exchange for citizenship and
- It also offers one of the greatest investment immigration programs in the world.
And, when it comes to the regulation of cryptocurrencies in this country, the government of Vanuatu has been very liberal.
In fact, the government not only allows the crypto coin holders to get their nationality by investing in BTC but it also offers the investors a Vanuatu passport that is valid for 5 years.
All these features of Vanuatu make it one of the most ideal and easiest countries for the crypto investors to migrate and acquire investment citizenship.
5. Antigua and Barbuda
Antigua is another place to migrate if you are a crypto coin holder. It has recently started following the footsteps of Vanuatu and is offering citizenship to investors in lieu of Bitcoin investments.
Also, just like Vanuatu, the investment citizenship is offered to the cryptocurrency holders through a donation to the Development Fund.
This donation can be made in any form such as cash, crypto coins or with an investment made in real estate.
In the past couple of years, the demand of obtaining citizenship of Antigua through an investment program has risen significantly.
Experts and critics think that it is due to the low processing and wait times, minimum requirements and the idyllic lifestyle of the country.
Other Popular Crypto Friendly Countries
Apart from the list of five above, there are a few other countries and cities in particular that are also good to consider by the crypto investors wanting to immigrate.
These regions allow holding and using crypto coins but make sure that you check out their financial procedures and regulations as that may vary from that of the countries mentioned in the list of five earlier.
Though the government considers it to be private money, the fact that crypto transactions are not subject to VAT and are exempted from capital gains tax for long-term makes Germany a good country to consider.
However, this benefit is available to the resident investors and not for businesses that are subject to corporate income tax when they deal with cryptocurrencies.
The city of Zug in Switzerland is called the “Crypto Valley” and is the first country to accept crypto payments in the world way back in 2016.
There are lots of blockchain businesses, firms, entrepreneurs, and shops bustling here. It is also known to be a tax-free region for the crypto investors.
There are no specific regulations in Cyprus for cryptocurrency as of now. This Middle-Eastern Island country supports several blockchain and crypto startups.
Cryptocurrencies in all forms are used not only in casinos but also as ICOs. It is used by large corporations as well as individuals in their daily lives.
Japan announced crypto coins as a legal tender in 2017 and at the same time set specific tax rules and guidelines for the crypto investors and traders.
As of now, there are more than 20 companies in Japan that have the authority to implement and declare rules and regulations regarding crypto exchanges.
These are included in the JVCEA or The Japanese Virtual Currency Exchange Association.
The United States
A large number of traders trade with cryptocurrencies in the United States making it one of the most favored destinations for the crypto migration.
The US has remained the pioneer in this field and has the highest number of crypto ATMs as well.
The enterprises of the famous silicon-valley even promote cryptocurrency and the advances made in the new technology.
US have also made it a part of mainstream business functions with Montana and Texas being the most favored states for the blockchain startups.
In keeping with the repertoire of Israel for its inclination in the stock, having similar interest with the digital assets is nothing surprising.
Israel is one of the largest financial centers in this world and therefore it is expected to have a positive attitude on cryptocurrency.
It is one of the most attractive bitcoin nations of the world having more than 58 bitcoin merchants and 4 bitcoin ATMs.
United Arab Emirates
UAE is also one of the biggest nations that support cryptocurrency being a worldwide hub for it.
Since several investors are considering it to be the most favored crypto ecosystem to start blockchain ventures, UAE even has plans for a government supported blockchain.
Considering tax benefits, this small European country is a serious contender.
Cryptocurrencies are considered as flexible and intangible assets here and therefore are not subjected to taxes if these are not sold off.
Also, all crypto transactions are exempted from the Value Added Tax or VAT.
This developing country is known for exploring all available and possible avenues of blockchain.
Estonia has formulated and set several acts and rules regarding cryptocurrency to allow the blockchain startups to make their investments in its growing technology.
It offers e-residencies to attract more blockchain startups.
Though China banned cryptocurrency and mining crypto coins initially, it has opened up for blockchain-based services.
It has resulted in several innovative developments and includes the field of education, legal system, and more.
Recently, China has started to show support for smart contract platforms of its own such as VeChain, TRUN, NEO, and QTUM.
Hong Kong considers bitcoins and other crypto coins as commodities and not currencies and therefore these are exempted from capital gains taxes and Value Added Taxes.
The port city has a lot of cash to BTC ATMs that are open around the clock.
Denmark considers these digital assets as capital property and financial instruments and therefore exempts them from VAT.
It has legalized cryptocurrencies though there are specific laws laid down by the government to prevent money laundering.
The good thing is that it allows a tax deduction if a trader incurs loss in crypto investments. However, this does not apply for business activities.
Cryptocurrencies are considered as virtual currencies in Slovenia and therefore can be used as a mode of payment for purchasing goods and services.
Moreover, mining crypto coins will also not be subjected to VAT.
As a smart crypto investor you should first find out a country that supports cryptocurrency trading and investing before migrating.
Research well or follow this list of crypto-friendly countries which will surely be of immense help to you.