Countries With 0% Tax on Bitcoin

Tax onobitcoinn  2017 we witnessed the uncontrollable growth of Bitcoin. It even crossed the mark of 10,000$
which made a great impact among the cryptocurrency enthusiasts. This unsung sector is growing
more and more as the time goes by but the issue with cryptocurrency is that there are no set laws
for or against it in some countries, which makes it a bit insecure. The statement is not fully correct
though because when we trade with cryptocurrency we pay some amount of tax during the trade
and if you are not lucky enough then you need to pay tax apart from that over a certain limit in some
countries. However, there are countries where you don’t have to pay taxes on Bitcoin. Let us take a
look at the countries with 0% tax on bitcoin.
Denmark
Denmark is one of the friendliest countries for cryptocurrency in the world. According to the Danish
rule, the gains on Bitcoin is exempted from tax and also the trades related to Bitcoin or any other
cryptocurrency is exempted from Tax as well. To buy bitcoin in Denmark, you need to either go to a
broker, which is also the easiest of ways to buy bitcoin in Denmark. There is, however, one other
way to buy bitcoin in Denmark, by buying it from an exchange. There are some reports on the
internet n whether to tax bitcoin on Denmark or not. The country is said to be in huge tax burden
and thus regulators are seeking if they need to set taxes on Bitcoin or not.
Germany
Germany is that country which does not think Bitcoin or any other cryptocurrency as a commodity
rather they think it as the private money which is more like foreign currency. There is a rule called 23
EStG which has tax free benefits included in it. Under the rule of 23 EStG, trading Bitcoin or any
altcoin is considered as private trade.So, if you are a trading Bitcoin or any other altcoin in Germany
then you are exempted from tax if and only if you are capital gains are less than 600 Euros.
Furthermore, if you sell your Bitcoin or any altcoin after a period of one year from the buy date then
you are totally exempted from tax under this rule. Hence, Germany can be considered as a tax-free
country, if not totally but then the rules are made in favor of the tax-free trade.
Singapore
When it comes to capital regulations, Singapore is one of the friendliest countries in the world. In
Germany, Bitcoin is neither considered as a commodity nor a currency. The individuals gaining
profits from the bitcoins or altcoins are exempted from tax here. However, businesses that trade
with bitcoins or altcoins have to pay taxes on their profits which is a great scheme. If you are a long-
term investor and you cash out your bitcoin for money then you won’t be taxed under their rules.
There are talks going on around to tax bitcoin in Singapore. However, authorities are still in dilemma
as to whether to treat Bitcoin as Commodity, currency or like stock. For now, as individual residing in
Singapore, you don’t have worry about taxation because Singapore Government does not tax on
capital gains.
Slovenia
The land of mountains, ski resorts, and lakes, Slovenia, a country in Central Europe is a bitcoin tax
heaven for individual investors. The individuals here get benefits from bitcoin and cryptocurrency
trades because there are no taxes on capital gains that arise from cryptocurrency trades. They
consider this as the part of their income. These set of rules for cryptocurrency and bitcoins was
brought into existence, back in 2013 and since then there are no changes in the rules. However, the
businesses in Slovenia face a challenge while trading or mining bitcoins because they are not
exempted from taxation here. The businesses have to pay taxes on their capital gains. Here is one
more thing which is that if you are getting paid in bitcoin as your income then you shall not be
exempted from tax.
Belarus
Belarus is a country surrounded by land and is situated in Eastern Europe. His country is known for
the Stalinist structure primeval forests and Grand fortifications. The president of Belarus has recently
legalized Bitcoin and has exempted tax from trades or gains for at least five more years from now.
The decree signed by the president also states that the Initial coin offerings or the ICO’s are also
exempted from tax. Furthermore related income and bitcoin transactions are exempted from tax
which includes bitcoin and other altcoin mining as well. The reason for legalizing cryptocurrency is to
attract Global IT companies in Belarus. The decree will also allow the HTP residents or High tech park
residents to become firms that mine and trade bitcoin or another cryptocurrency. Thus Belarus has
created an atmosphere such unique that it completely beneficial for Individuals as well as companies
in Belarus. Furthermore, the Legal Entities who are in High tech parks can get investments by issuing
their own Initial Coin offering tokens or trading them. However, some authorities are against the
legalization of cryptocurrency in Belarus. The reason is that they believe that it can entail many
serious risks in the financial markets.
Verdict
These are the few countries that are offering tax exemption in their constituency for bitcoins and
other altcoins. These are the only countries that had taken a stand for the bitcoins and other
cryptocurrencies which are to be made tax free in those countries. However, the current popularity
and rise of Bitcoin have led the authorities of those countries to reconsider the tax exemption laws
of Bitcoin and other altcoins. There are however other countries that unofficially offer tax exemption
on bitcoin and other cryptocurrency trades. The reason for this is because these countries have laws
that offer exemptions on capital Gains and this is a key factor which makes cryptocurrencies tax free
as well in those countries.

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