Countries with the lowest and highest taxes on cryptocurrency transactions

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Cryptocurrency continues to shine. Even though their performance has been lacking for a week, a number of cryptocurrencies have begun to show off by trying to get up.

Bitcoin, for example, in trading the price was $ 48,803.85, up 4.1% over the last 24 hours.

Ethereum over the same period and time rose 4.0% to $ 1,538.42 per eth in 24 hours, after a week's collapse.

Bitcoin Cash, in its trade, despite being out of the top 10 positions of CMC a few days ago, began to regain its position in the top 10 with a price of $ 497.81, up 2.6% for 24 hours at the time of writing.

The Cryptocurrency movement is in the spotlight. Even though they are still fueling the pros and cons, not a few global companies are starting to cram cryptocurrency into one of their portfolios.

For example, Tesla Inc has announced that it has invested $ 1.5 billion worth of investment funds in cryptocurrency on its balance sheet.

Titles for Master Card Inc and Bank of the latest York Mellon Corp announced will make it easier for customers who use crypto money (cryptocurrency).

And the latest news that blew was that Netflix was said to be a Fortune 100 company buying up Bitcoin.

Seeing a variety of news and the number of companies that have started to enter the crypto world, a number of countries are also planning to impose taxes on cryptocurrency transactions, although there is no consensus on the tax treatment of cryptocurrencies or cryptocurrencies.

Only a few countries such as Canada have established rules for crypto users. This is because countries in Europe are free to decide on the nature of taxation for Bitcoin.

Quoting from various sources, these are the tax rules that apply in European countries to the highest and lowest Bitcoin taxes.

Belarus

Belarus is one of the best places if you want to save on Bitcoin taxes. The President of Belarus in 2018 declared that Belarus could become a digital currency haven by removing all personal income taxes on cryptocurrencies until January 1, 2023.

That way, investors do not need to pay income tax, Value Added Tax, or VAT when carrying out activities such as mining, acquisitions, or making cryptocurrencies.

Treat the tax on this cryptocurrency special because Belarusian considers Bitcoin, or any cryptocurrency, to be a "universal tool of exchange".

Portugal

Portugal is also another haven for not paying Bitcoin taxes.

Although the law is not very clear, investors are exempt from paying income tax or financial gains on cryptocurrency transactions.

The government insists that VAT will not apply to transactions involving Bitcoin.

Even so, Portugal can impose taxes if you are a professional trader in cryptocurrency matters. A person's judgment is said to be professional or not entirely in the hands of the authorities.

However, the criteria used are the volume and frequency of trading, the complexity and duration of the investment, the profit margin and associated income, and the main source of income.

However, for most individuals, there is no tax.

German

Germany has recognized and considers cryptocurrency as private money. That way, the owner of the crypto money has to pay a financial gain tax of 25% on all profits made from trading.

However, these taxon financial gains only apply to profits earned within one year of receiving your Bitcoin.

Any profit made after one year of receipt of your cryptocurrency is tax-free. As a result, Germany is the perfect place for HODL traders to keep all their profits.

Germany has also made it clear that Bitcoin will not collect any VAT. If you are a resident of the EU, you can easily move to Germany to enjoy Bitcoin tax at zero rates.

Norway

Norway considers revenue from Bitcoin trading as property business income or other business income.

That way, you will have to pay taxes as an individual for the profits made from selling Bitcoin.

The tax treatment for cryptocurrency trading is financial gain obtained at a rate of 25%. However, if you lose, taxes can be deducted from your profit.

Norway considers mining Bitcoin to be income from other sources and can be taxed. Businesses must also pay corporate income tax on their cryptocurrency income.

French

France in the tax rules on cryptocurrency transactions with the aim of controlling tax evasion cases.

Sales of cryptocurrencies are subject to an income tax of 66% tax on your profits as they are not considered a commercial transaction.

However, merchants did not need to pay such high taxes. They can pay progressive income tax based on the profits they make. The corporate tax rate starts from 28% for FY 2021.

France does not charge any VAT on Bitcoin sales at this time. However, you will have to pay VAT when paying for goods in Bitcoin.

This means that taxes have to pay your Bitcoin taxes as income, capital gains, or property taxes in France. Inheriting cryptocurrency can also attract taxes.

Spanish

Spain is on track to crack down on tax evasion. It passed laws requiring citizens to disclose the advantages of trading cryptocurrency.

Short-term Bitcoin trading in a year will attract 24.75% and 52% tax on your profits.

Long-term traders have lower tax rates of between 19% and 23%. The percentage you pay is determined by how much you earn that year.

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Comments

I liked your article. Something to learn about these countries giving decentralized investment opportunity. Thank you!!

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