The Best Countries for Cryptocurrency Investors

Most people know that you need to pay capital gains taxes on cryptocurrency investments, and depending on where you live, these taxes can be quite steep. Therefore, many investors have begun looking to move to countries with more favorable tax laws.

The United Arab Emirates, Cayman Islands, and Monaco all have zero capital gains taxes, making them attractive for investors. But what works for one investor may not work for another. Read on to learn more about the best countries for cryptocurrency investors.

1. Cayman Islands

The Cayman Islands is one of the best tax havens known to man. Not only are there 0% capital gains taxes, but there are also no corporate taxes, and no personal income taxes. Basically, you can live in this island country 100% tax-free.

That being said, property in the Cayman Islands is expensive because you aren’t the only one searching for the perfect tax haven, and the infrastructure might not quite meet your standards, especially with the high price tag. Those with a monthly income of less than $8,000 USD might find it difficult to live comfortably. Add that to the fact that there are frequent hurricanes, and you might find yourself looking elsewhere for a tax haven.

2. Monaco

If you want the benefits of living in Europe without the high tax rates, then Monaco is the only way to go. While Monaco does have corporate tax, there is no capital gains or personal taxes, ensuring you can live in the country practically tax-free. However, like the Cayman Islands, the cost of living is steep because you are not the only one wanting the benefits without the cost.

In fact, the cost of living in Monaco is three times that of the Cayman Islands, and we don’t suggest it for anyone netting less than 15,000 euros per month. At least you don’t have to deal with hurricanes and can vacation all over Europe, though!

3. United Arab Emirates

For those willing to look a little further east, The United Arab Emirates are also ideal, with their 0% capital gains and 0% personal tax rates. Although the UAE is expensive for the Middle East, it is much cheaper than both Monaco and the Cayman Islands, especially if you live outside of Dubai. In general, individuals are able to live a comfortable lifestyle on around $4,000 USD each month.

We find that this is because of the social aspects of the UAE. While they generally remain neutral, many take a humanitarian issue with the way some individuals within the country are treated. And while (unlike other Muslim countries) alcohol is sold in the UAE, it is often more difficult to come by, and men may struggle to meet eligible women because of the legality of polygamy and full burkas in public.

4. Bermuda

Back in the Caribbean, Bermuda is another island nation with no capital gains taxes and no personal taxes, though corporate taxes do apply. Unlike the Cayman Islands, Bermuda is a bit less popular (and a bit more in the path of hurricanes), keeping the cost of living cheaper than the Cayman Islands, though it is much higher than neighboring islands.

If you really want island living, Bermuda is definitely an option, just make sure you are comfortable spending the equivalent of $6,000 USD each month to survive. Oh, and take a few classes for prepping for hurricanes while you’re at it.

5. Singapore

Like Europe, there aren’t many tax havens in Asia. Singapore is one of the few, and though they offer no capital gains taxes, they do progressively tax income, making them the first on our list to do so. There are also corporate taxes, but they are only 17%, keeping them on the low side for industry.

Although you can’t live there completely tax-free, Singapore is one of the first on our list where it is affordable to live comfortably. Not only is there great infrastructure and international connections, but the city is generally affordable, even for eating out. So if you don’t mind paying personal taxes to skip the hurricanes and make at least $2,000 USD per month, Singapore is definitely the way to go!

6. Isle of Man

If you have your heart set on Europe but can’t afford Monaco, then the Isle of Man is the way to go. With no capital gains taxes and low limits for personal income taxes, the Isle of Man is attractive to individuals. Add in the fact that they have no corporate taxes, and you might just find yourself wanting to build a business on this lesser-known island.

The Isle of Man is more expensive than most locations on this list, but still cheaper than Monaco and the Cayman Islands, with residents spending an average of $5,000 USD monthly to live comfortably. Unfortunately, though the cost of living is comfortable, the weather is not, leaving many residents dreaming of sunny days during the long and dark winters.

7. Hong Kong

Back to Asia, Hong Kong is the only other option with 0% capital gains tax. While they do tax income like Singapore, the rate is progressive and low, ensuring you keep the bulk of your paycheck. There are corporate taxes (Again, like Singapore), and they are reported to be 16.5%.

Living in Hong Kong comfortably will only cost you about $2,000 USD per month, which might leave you wondering why it isn’t higher on our list. As an administration zone of China, we have serious privacy concerns about living in Hong Kong, especially since cryptocurrency is illegal in China. So, if you are specifically looking for somewhere to avoid cryptocurrency capital gains taxes, you might want to choose something else.

8. St. Kitts and Nevis

Last, but certainly not least, is St. Kitts and Nevis, which has no personal income taxes and no capital gains taxes. It is important to note, though, that the reason they aren’t higher on our list is that they have steep corporate taxes at 33%, the highest on our list. This means that though they are a viable tax haven, they won’t have the same level of businesses and services as others on our list.

Though you can live comfortably on $3,000 USD monthly in St. Kitts and Nevis, know that it is a difficult place to travel in and out of and is not as connected as many other locations on this list. Although that may not matter to you, note that, as a Caribbean island, there are still hurricanes in this location—and they get hit far more frequently than the Cayman Islands.