5 Countries Where Crypto Is Tax-Free in 2025 (And Still Legal)
In 2025, five countries stand out as tax-free jurisdictions for cryptocurrency investors: 1. **Cayman Islands**: No personal income, capital gains, or corporate tax on cryptocurrencies. A new regulatory framework supports compliant operations for crypto businesses. 2. **United Arab Emirates (UAE)**: Zero tax on crypto trading, staking, and mining across all emirates. Regulatory clarity is provided by dedicated authorities, making it attractive for startups and investors. 3. **El Salvador**: No capital gains or income tax on Bitcoin transactions, supported by its Digital Assets law. The country is developing Bitcoin City, a tax-free zone for crypto activities. 4. **Germany**: Long-term holders (over 12 months) enjoy tax-free sales of cryptocurrencies. Gains under 1,000 euros are also exempt from taxation. 5. **Portugal**: Capital gains on crypto held for over a year are tax-exempt. The Non-Habitual Resident program offers additional tax benefits, although short-term gains are taxed at 28%. These countries provide significant advantages for crypto investors, but residency requirements and compliance with local laws are essential.
