As of July 2025, several jurisdictions offer attractive tax environments for cryptocurrency investors. These locations provide significant benefits through tax policies and regulatory frameworks, making them ideal for crypto traders and investors globally.
The Cayman Islands, following amendments to its VASP Act effective April 1, 2025, imposes no personal income, capital gains, or corporate tax. The United Arab Emirates exempts individuals from personal income tax on crypto earnings. Furthermore, the UAE removed the 5% VAT on crypto transactions, effective November 15, 2024.
El Salvador, since 2021, maintains a tax-free environment for crypto transactions, with no capital gains or income tax on Bitcoin activities. Germany offers tax-free benefits for long-term holders, with sales, swaps, or use of crypto held over 12 months being tax-free. Portugal exempts crypto capital gains for assets held longer than 365 days. However, the NHR program was discontinued as of July 2025.