⚪️ The Cayman Islands: the ultimate tax haven for cryptos
The Cayman Islands have long been known as a tax haven. And this does not change in 2025. This British Overseas Territory imposes no income tax, capital gains tax, or corporate tax. In other words, traders and investors in cryptocurrencies can realize profits without having to worry about taxes.
Furthermore, the Cayman Islands offer a clear and favorable regulatory framework for cryptocurrencies. The Virtual Asset (Service Providers) Act, which came into effect in April 2025, allows exchanges, custodians, and other cryptocurrency-related service providers to operate legally in the country.
⚪️ The United Arab Emirates: an oasis for cryptocurrencies
The United Arab Emirates (UAE) are also a tax haven for cryptocurrencies. In this Gulf country, there is no income tax or capital gains tax for individuals. This means that cryptocurrency traders and investors can realize profits without having to pay taxes.
The UAE has also established a clear and favorable regulatory framework for cryptocurrencies. The country has several regulators dedicated to digital assets, such as the Dubai Virtual Asset Regulatory Authority and the Abu Dhabi Financial Services Regulatory Authority. These agencies issue licenses to cryptocurrency-related businesses, allowing them to operate legally in the country.
⚪️ El Salvador: the country of Bitcoin
In 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender. Since then, the country has implemented legislation favorable to cryptocurrencies, including a total exemption from capital gains tax for Bitcoin transactions.
El Salvador is also in the process of building Bitcoin City, a city dedicated to cryptocurrencies, which will be powered by geothermal energy. This city will offer an even more favorable tax framework for businesses and individuals related to cryptocurrencies.
⚪️ Germany: a favorable tax regime for long-term holders
Germany is not a tax haven in the strict sense, but the country offers a favorable tax regime for long-term cryptocurrency holders. Indeed, if you hold your cryptocurrencies for more than 12 months, you are exempt from capital gains tax.
This tax regime is particularly interesting for investors who wish to hold their cryptocurrencies for the long term. It allows for profits to be realized without having to pay taxes, provided that the minimum holding period of one year is respected.
⚪️ Portugal: a paradise for expatriates
Portugal has been one of the preferred destinations for expatriates seeking a favorable tax framework for cryptocurrencies for several years. The country offers a total exemption from capital gains tax for cryptocurrencies held for more than 365 days.
Portugal also offers a non-habitual resident (NHR) program, which allows expatriates to benefit from a favorable tax regime for 10 years. This program is particularly interesting for retirees and remote workers who wish to settle in Portugal.
In 2025, the Cayman Islands, the United Arab Emirates, El Salvador, Germany, and Portugal stand out for their favorable tax treatment of cryptocurrencies. These countries offer total or partial exemptions from capital gains tax, making them attractive destinations for cryptocurrency traders and investors. However, it is important to note that tax laws can evolve quickly. It is therefore essential to stay informed of the latest developments before making a decision.
