Countries with zero cryptocurrency tax in 2025

Countries with no cryptocurrency tax in 2025 continue to attract investors and digital-asset enthusiasts seeking maximum freedom from tax obligations. In the coming year such jurisdictions are becoming increasingly rare, but still offer real tax-free opportunities for those who carefully plan and comply with local requirements. Below we will examine which countries offer the most favorable conditions for living and investing with cryptocurrency.

Tax-free countries for cryptocurrencies

COREDO’s experience shows: choosing a country with zero tax on cryptocurrency should be based not only on formal rates but also on a number of additional criteria:

• Reliability of legislation: long-term stability of the tax regime, absence of risks of sudden changes.
• Residency requirements: the possibility of obtaining a residence permit or business residency without complicated procedures.
• Licensing of crypto business: presence of transparent rules for obtaining a license for cryptocurrency activities, clear cost of the license.
• Compliance and AML/KYC: adequacy of requirements, absence of excessive control, possibility of building flexible compliance strategies.
• Infrastructure: developed banking and legal services, free economic zones, access to international markets.

Countries without cryptocurrency tax

UAE (Dubai, Abu Dhabi): a tax-free jurisdiction for cryptocurrency where business residency is available through company registration in a free economic zone. The solution developed by COREDO makes it possible to obtain a license for cryptocurrency activities (VARA, ADGM) in 2-4 months, integrate AML/KYC procedures and legally invest in real estate for cryptocurrency.

The Cayman Islands are a prestigious tax haven for crypto assets, where corporate taxation of cryptocurrency is absent and residency requirements are minimal. COREDO’s experience has shown: licensing of crypto business here requires thorough due diligence, but provides international recognition and capital protection.

El Salvador: the first country to legalize Bitcoin as a means of payment. In Bitcoin City, zero taxes on capital gains from cryptocurrency apply, and to obtain a residence permit it is enough to invest in digital assets or real estate. COREDO’s practice has confirmed: legalization of cryptocurrency income in El Salvador is transparent, but requires compliance with local AML standards.

Portugal is a country where, for individuals holding cryptocurrency for more than a year (HODL), a zero capital gains tax applies. For legal entities and traders the tax status is more complex: confirmation of tax residency (183 days of stay) is required, company registration, and integration of compliance strategies. COREDO’s solutions allow optimizing business structure and avoiding double taxation.

Germany: a unique case: if an individual holds cryptocurrency for more than a year, capital gains tax is not levied. For companies standard corporate rates apply, but with proper international tax planning a significant reduction in tax burden is possible.

Cryptocurrency taxation for residents

Cryptocurrency taxation for residents is becoming an increasingly relevant issue: in many countries profits from digital asset transactions are taxed, and rates and requirements depend on the resident status and features of local legislation. Below we will examine countries where a zero cryptocurrency tax is set for residents in 2025, which is especially important for those seeking an optimal tax jurisdiction.

Countries with zero cryptocurrency tax in 2025

Choosing a country is a strategic decision affecting ROI, long-term asset protection and legality of operations. The COREDO team has implemented more than 120 projects relocating crypto business to the UAE, Cayman Islands, El Salvador and Portugal, using the following algorithm:

1. Business goals analysis: determining priorities – capital protection, scaling, minimizing tax risks.
2. Due Diligence of jurisdictions: assessment of legislation, stability of the tax regime, residency requirements.
3. Compliance strategies: integration of AML/KYC, preparation of corporate structure, calculation of license cost.
4. Assessment of legal risks: analysis of the possibility of sudden changes in tax legislation, risks of fines and account blocking.
5. Relocation plan: step-by-step instructions for company registration, obtaining a license, opening accounts and arranging a residence permit.

How to prove tax residency

To legalize income from cryptocurrency and obtain tax benefits it is required to confconfirmation of resident status:

• Certificate of residency (Tax Residency Certificate): issued after company registration and/or obtaining a residence permit.
• Proof of presence: tickets, lease agreement, utility bills.
• Corporate documents: articles of association, director appointment resolution, cryptocurrency activity license.
• Reporting under international standards (CRS, FATCA): integration of digital identification, automatic exchange of information.

Cryptocurrency taxes for individuals and legal entities in the EU, Asia, Africa

Cryptocurrency taxes for individuals and legal entities in the EU, Asia, Africa vary significantly by region, and these differences are important for understanding financial risks and opportunities. In each jurisdiction, the rules for taxing digital assets set different rates and requirements for individuals and companies. Below we consider how cryptocurrency taxes for individuals and legal entities differ in the key countries of these regions.

Taxes for individuals and legal entities: comparison

In the EU, the tax consequences for individuals depend on the holding regime (HODL) and the nature of operations:

• Long-term holding (HODL): in Germany and Portugal: exemption from capital gains tax when held for more than one year.
• Trading and mining: in most EU countries taxed as income, reporting of transactions is required.
• Legal entities: corporate taxation of crypto assets, mandatory company registration, integration of compliance strategies.

In Asia (Singapore, UAE) tax incentives for investors are more flexible: there is no capital gains tax, but licensing and compliance with AML/KYC are required. COREDO’s experience showed: company registration in Singapore takes 3–7 days, account opening is possible remotely, and licensing of crypto business requires integration of due diligence procedures.

In Africa (South Africa, Kenya) cryptocurrency taxation is still forming, but a number of countries already offer tax incentives for crypto startups and miners.

Crypto business license: AML/KYC requirements

A license for cryptocurrency activity is a key element of business legalization. In the UAE, the Cayman Islands and Singapore, licensing includes:

• Submission of corporate documents: articles of association, director appointment resolution, business plan.
• Integration of AML/KYC: client identification procedures, transaction monitoring, compliance automation.
• License cost: from $15,000 to $120,000 depending on the jurisdiction and type of activity.
• Due diligence: verification of sources of funds, capital structure, compliance with international reporting standards.

Tax risks for crypto investors in 2025

Tax risks for crypto investors in 2025 are becoming increasingly relevant against the backdrop of tougher control by tax authorities and the emergence of new rules for declaring digital assets. The introduction of comprehensive mechanisms for monitoring cryptocurrency operations requires every investor not only to accurately calculate obligations but also to have a deep understanding of potential tax traps.

Double taxation when working with cryptocurrency

International tax planning is the foundation of capital protection. COREDO’s solution includes:

• Analysis of tax treaties (Double Tax Treaties): choosing countries where agreements to avoid double taxation are in force.
• Business structuring: registration of holding companies, trusts and funds for investments in digital assets.
• Reporting optimization: integration of international standards (CRS, FATCA), automation of information exchange.
• Legalization of income: preparation of documents confirming the origin of funds, integration of compliance strategies.

Fines for AML and compliance violations

Failure to comply with AML/KYC and compliance requirements leads to serious consequences:

• Fines: in the EU and UAE: from €50,000 to $500,000 for breaching customer identification procedures.
• Account blocking: banks and payment services block transactions if the source of funds is not confirmed.
• Legal risks: criminal liability for money laundering, inability to legalize income.

Countries without cryptocurrency tax: how to use them?

Countries without cryptocurrency tax open unique opportunities for investors and entrepreneurs who want to preserve digital assets without tax losses or develop business in new jurisdictions. It is important to understand that using these advantages requires a proper approach to relocation, business registration and thorough preparation of documents according to local requirements.

How to relocate and register a business?

1. Choosing a jurisdiction: analysis of the tax regime, residency requirements, and scaling opportunities.
2. Company registration: preparation of corporate documents, submitting the application, obtaining the registration certificate.
3. obtainedlicenses: integration of AML/KYC, preparation of a business plan, undergoing due diligence.
4. opening a bank account: choosing a bank, preparing documents, integrating digital identification.
5. Residence permit processing: submitting documents, proving source of funds, obtaining a certificate of residence.
6. Compliance integration: automating procedures, staff training, transaction monitoring.
7. Investments in real estate and assets: legalization of income, transaction formalization, capital protection.

Cryptocurrency license in the UAE and the Cayman Islands

• UAE: company registration in a Free Zone (DMCC, ADGM, VARA), preparation of corporate documents, integration of AML/KYC, undergoing due diligence, obtaining a license in 2-4 months.
• Cayman Islands: company registration, preparation of a business plan, compliance integration, verification of sources of funds, obtaining a license for cryptocurrency activities.

Investing in real estate with cryptocurrency

In the UAE, El Salvador and the Cayman Islands, legalization of real estate investments made with cryptocurrency is possible through executing a transaction with proof of source of funds, compliance integration and obtaining a certificate of residence. COREDO’s solution allows clients to invest in commercial and residential real estate, scale their business and protect capital from tax risks.

Key takeaways for entrepreneurs and investors

• Countries with zero cryptocurrency tax – UAE, Cayman Islands, El Salvador, Portugal, Germany (for long-term holding) – provide real tax benefits for crypto investors and businesses.
• Residency and licensing requirements: a key factor in legalizing income and protecting capital.
• Compliance and AML/KYC: a mandatory element for successful scaling of crypto business, minimizing tax risks and preventing fines.
• Practical COREDO solutions – comprehensive support at all stages: from choosing a jurisdiction to compliance integration and income legalization.
• Risks of legislative changes – require continuous monitoring, flexible corporate structures and strategic planning.

Relocating a crypto business to a tax-free country

• Define business goals and priorities.
• Conduct due diligence of the chosen jurisdiction.
• Prepare corporate documents.
• Obtain a license for cryptocurrency activities.
• Obtain a residence permit and a certificate of residence.
• Integrate AML/KYC and compliance procedures.
• Open a bank account.
• Invest in real estate or other assets.
• Monitor changes in legislation and tax regime.

If you want strategic support, minimize tax risks and legalize cryptocurrency income, the COREDO team is ready to offer solutions proven in practice and compliant with international standards.