As cryptocurrency continues to take over the world, tax authorities are also not idle. But not all countries are taking a hard line. Some jurisdictions, on the contrary, are going against the trend and completely exempting crypto from taxes.
If you are asking in 2025 where you can trade crypto without taxes — such countries already exist. And they have long become a point of attraction for traders, bitcoin hodlers, and entrepreneurs from the world of digital assets.
Want a tax-free future? Building a portfolio in #defi , considering relocation, or just dreaming of not sharing your crypto income? Then it's worth knowing which countries truly offer such opportunities.
From the Caribbean to the Middle East and even a few unexpected locations in Europe. These places break the usual rules and rewrite the global tax map.
The 5 best countries in 2025 where crypto taxes remain zero. Let's see where you can lock in profits and stay off the tax radar.
Cayman Islands: crypto without taxes and with a license
If you are looking for a true tax oasis for digital assets, the Caymans are almost always at the top. No income tax, no profit tax, no capital gains tax; this applies to crypto as well. Want to trade bitcoin, hold it long-term, or invest in DeFi? Everything you earn stays with you.
The updated law on digital assets (Virtual Asset Service Providers Act) will begin to operate fully from April 2025. It provides a transparent licensing system for exchanges, custodians, and other platforms, in compliance with global standards.
If you add to this a stable economy (the local dollar is pegged to the US dollar), a legal system based on English common law, and a comfortable environment, it becomes clear why the Caymans consistently rank among the most reliable tax-free zones for crypto investors.
For many, this is a direct answer to the question: where in 2025 is crypto not taxed?
UAE: a territory without taxes for crypto
The United Arab Emirates is one of the most crypto-friendly countries in 2025. In all seven emirates, including Dubai and Abu Dhabi, there are no taxes on trading, staking, mining, or selling crypto. Neither income tax nor capital gains tax. This is a complete tax paradise for digital assets.
But the strength of the UAE is not only in taxes. There are separate regulators for the crypto market here: the Virtual Asset Regulatory Authority in Dubai, DFSA in the DIFC financial center, and FSRA in the Abu Dhabi Global Market. This provides clear rules for startups, venture funds, and large infrastructure projects. Want to launch an NFT or build L1 — licensing is transparent and understandable.
Visa programs, developed infrastructure, and offshore preferences for crypto companies make the UAE a comfortable country for those who want to live and work with crypto without taxes.
El Salvador: tax paradise for crypto
When El Salvador recognized bitcoin as an official means of payment in 2021, it was like a thunderbolt from a clear sky. Four years later, the country remains one of the most radical tax havens for crypto.
Thanks to the law on digital assets, there are no taxes on profits or capital gains from bitcoin transactions here. It doesn't matter whether you are trading, just holding, or paying through wallets like Chivo. This is one of the few countries where in 2025 the promise of 'crypto without taxes' still holds, especially for long-term investors.
Moreover, El Salvador is building Bitcoin City — a city where there will be no income tax, property tax, or profit tax. The city is envisioned as a tax-free zone for miners and crypto startups.
If you are looking for a place to live without taxes and be part of a future that has already arrived — El Salvador is just that case.
Germany: zero rate for the patient
Germany is not the first place that comes to mind when you think of crypto. It's a country for those who hold digital assets for the long term.
It's simple: if you hold bitcoin or another digital asset for more than 12 months — you can calmly sell, exchange, or even spend it in everyday life. There will be no taxes at all.
Yes, Germany considers such crypto to be personal property, not a speculative asset. This is a rare example where simple 'holding' leads to tax exemption.
Even with short-term transactions, there is a concession: if your annual profit from crypto does not exceed 1000 euros, then you don't have to pay anything either. Everything above that is taxed, but only if the asset was sold before the year is up.
For a country with high taxes, this is quite a generous scheme. Especially for those living in the EU and looking for a legal way to reduce their tax burden. If you can be patient, Germany could very well become an excellent place for crypto investments in 2025.
Portugal: zero taxes for long-term holding
Portugal remains on the list of countries with zero tax on crypto. If you hold digital assets for more than 365 days, there is no capital gains tax at all. This makes the country one of the most advantageous in Europe for long-term investors.
Especially lucky are those who managed to get under the NHR program before its closure on March 31, 2025. For them, almost all foreign income, including crypto, is tax-exempt. Domestic income is taxed at a fixed rate of 20%.
But complete tax-free status is already in the past. Short-term profits (less than a year) are now taxed at a rate of 28%, just like income from staking or any crypto activity that resembles business. However, if you are in it for the long haul or have simply retired and want to reduce your tax burden, Portugal remains one of the most attractive options in the EU.
It is not surprising that the country continues to be chosen by crypto supporters moving in search of tax tranquility.
Where in the world is crypto still tax-free?
So where can you live with crypto in 2025 and not pay taxes? The Cayman Islands, UAE, El Salvador, Germany, and Portugal stand out from the rest. Each has its own model: from zero rates on crypto in the Caymans, UAE, and El Salvador to tax exemptions for long-term holding in Germany and Portugal.
But it is important to understand that such benefits are not given for free. Almost everywhere there are residency requirements, documentation formalities, and compliance with local rules. And laws can change. The situation with El Salvador and the IMF negotiations illustrates this perfectly. A tax paradise today can become an ordinary jurisdiction tomorrow.
If you are seriously considering relocating for tax benefits, approach this wisely. Consult with local lawyers, keep an eye on updates, and don’t bet on one direction. The world is becoming stricter towards crypto, and such countries are becoming real exceptions. At least for now.