People don't like to pay taxes. At the same time, taxes are the main means of ensuring the economy of society and maintaining the viability of the state.
It is illegal not to pay taxes. At the same time, some countries provide their citizens with special tax regimes that allow them to pay less tax legally. Such regimes, territories where they are distributed or even entire states are tax havens.
Traditional tax havens are not a full-fledged economy. They do not compete with the major economies in terms of economic power, although they attract investors from such places because they have money.
Tax havens are usually small in physical size. In general, they have unusually generous and stimulating tax advantages and benefits for investors and businesses that are located in them, but receive income from abroad.
The best tax havens for crypto investors
Coincub сonducted research of the best tax havens around the world. Here are the results.
Bahamas # 1
Thanks to numerous tax benefits and regimes that are very loyal to taxpayers, the Bahamas has long been recognized as a tax haven with extremely favorable conditions for both foreign companies and individuals.
Tax laws for foreign investors, as a rule, also apply to taxes on cryptocurrency. Citizens and permanent residents of foreigners do not pay taxes on personal income or capital gains.
Unlike most countries in the world, the Government of the Bahamas receives enough income from value added tax and property stamp duties to fill its budget at a sufficient level to ensure the functioning of the state.
The Bahamas has long been a popular place for foreign financial institutions, thanks to very attractive tax benefits and the reputation of a stable state.
Bermuda # 2
Bermuda accepts payments for ordinary taxes, fees and related government services using the USD Coin (USDC) cryptocurrency.
For the average crypto investor, Bermuda currently does not impose income tax and capital gains tax. Also, the state does not tax digital assets or transactions related to digital assets.
Belarus # 3
Belarus actively contributed to the introduction of cryptocurrencies in the country after its decision several years ago to exempt individuals and legal entities engaged in cryptocurrency from taxes until 2023.
Mining and investing in cryptocurrencies are personal investments and are exempt from income tax and capital gains in order to stimulate the digital economy.
United Arab Emirates # 4
There are no taxes at all in the Arab Emirates, with the exception of corporate income tax and taxation of foreigners. This country is the exception rather than the rule, since even in the Bahamas you have to pay taxes.
Zero tax also applies to profits from cryptocurrencies. The United Arab Emirates has a corporate income tax, and in each Emirate it is set independently.
In the UAE, there are also certain free zones with tax benefits or 0% tax rates for certain periods of time.
The current tax system in the country allows an individual crypto investor to enjoy all crypto profits... or losses – without paying taxes.
The UAE loyally accepts the entire crypto and blockchain community, setting itself the goal of becoming the leading crypto-financial center of the region.
Central African Republic # 5
The Central African Republic has accepted bitcoin as a legal tender, just like El Salvador. The President of the country is a big supporter of everything related to cryptocurrency, and hopes to turn the Republic into a leading crypto center.
The Central African Republic has also announced the creation of Sango Coin, a cryptocurrency with many additional benefits associated with it.
The government plans to turn the country into a crypto economic zone to attract businesses and crypto enthusiasts from all over the world.
CAR offers favorable tax benefits to foreign investors to stimulate the state's economy. Cryptocurrencies are not taxed. At the same time, the country has quite severe penalties for ordinary tax evasion.