How is crypto taxed in different countries?
Cryptocurrency taxation varies from country to country. Some governments do not levy taxes on crypto investments in order to attract more investors. Others require a high price for the ability to work with cryptos legally.
✔️ Taxes are paid on both cryptocurrency-based income and trading/investment.
✔️ Short-term investments (less than a year) have lower rates.
✔️ An individual income bracket is taken into account when calculating a personal crypto tax.
✔️ Cryptocurrency income is classified as Miscellaneous and is taxed at up to 45% rate.
✔️ High taxation causes a big number of under-reported crypto earnings.
✔️ The amount of the crypto tax a Japanese pays depends on the individual income bracket.
🇳🇮 El Salvador
✔️ El Salvador was the first country to recognize Bitcoin as a legal tender.
✔️ Foreign investors are exempt from paying taxes on Bitcoin.
✔️ The government plans to build the first Bitcoin City free of income, property, and capital gains taxes.
🇪🇺 EU countries
Germany & Portugal do not impose taxes on cryptocurrency income. The remaining countries levy. Other income, capital gains & other types of crypto taxes.