Key Insights:
- Most people believe they’re stuck paying 20-50% crypto tax
- Residency and record-keeping matter far more than your passport.
- Many EU, EEA, and adjacent countries offer full or partial crypto tax exemptions
Crypto investors often wrongly assume they’re trapped paying high taxes on their digital assets. But if your government is currently siphoning off half your crypto wealth, the good news is that, as a European citizen, you can vote with your feet and reduce your crypto tax burden to zero.
Your tax jurisdiction doesn’t depend on where you’re born, but on where you reside. As ‘Master Builder of Generational Wealth in Crypto’, Alex Mason, explains:
By strategically relocating to optimize your residency status, you can reduce your crypto tax burden to zero. Becoming a tax resident in a crypto-friendly country typically means you need to spend less than 183 days a year (around six months) in your homeland, since most countries only consider you a resident if you spend more than half the year on their soil.
You’ll also need a degree of flexibility and a willingness to try something new (like pasteis de nata or Bratwurst, since Portugal and Germany are high on the list). If you’re up for the challenge and have always wanted to relocate, check out the top seven crypto-friendly tax destinations.
1. Germany: Best for Long-Term HODLers
The land of the lederhosen and sausages, Germany charges its residents 0% tax on crypto gains when held for over 12 months. This makes it an appealing choice for long-term holders but a nightmare for frequent traders: selling before one year incurs regular income tax of up to 45%.
Staking is taxed as income, and you’ll need to keep meticulous records since German bureaucracy is notorious.
But with no wealth tax or need to declare sales if held beyond the threshold, this Northern European country could be for you. It’s also got some really good beer.
2. Portugal: Still Crypto-Friendly (With Caveats)
Portugal is a solid choice for HODLers, with 0% tax on crypto gains held over 12 months. Unfortunately, Portugal recently changed its crypto laws, and short-term gains are now taxed at 28%. Not as high as its German counterpart, but not exactly a top crypto tax haven either.
Passive holders and those qualifying under the NHR 1.0 scheme (before March 2025) benefit most, as there is no tax on foreign wealth or inheritance. The custard tarts are to die for as well.
3. Georgia: Full Crypto Freedom
Did you say Georgia or the Wild, Wild West? This lesser-explored country affords its residents full crypto freedom and zero crypto tax on foreign-sourced gains. Why? Crypto is not regarded as Georgian income, so individuals pay nothing on it.
It’s also cheap, safe, and offers easy residency with a fast-track process, making it perfect for those wanting EU access and crypto privacy.
4. Armenia: Discreet and Effective
In Armenia, foreign crypto income is untaxed, and it takes just 30 days to become a tax resident, with a path to citizenship after three years. It’s quiet, stable, and ideal for crypto investors seeking low-profile advantages. The drawback? You’ll need to invest in some warm clothing since winter temperatures regularly fall to -14 degrees.
5. Andorra: Ultra-Private and Tax-Free
Nestled in the mountains between France and Spain, Andorra is like a mini Switzerland, extracting 0% tax on crypto and foreign income. While Andorra is not technically in the EU, if you want to become a resident a stone’s throw from its EU neighbors, you can do so with a €50K deposit plus proof of income/support.
While not exactly a steal, this Pyranesian nation is a perfect choice for high-net-worth individuals who don’t enjoy paying crypto tax.
6. Malta: A Hub for Crypto Entrepreneurs
Remember Blockchain Island? If you can handle the crowds, Malta rewards with 0% tax on long-term crypto gains. You’ll need to find an astute accountant, since how you set yourself up here matters. But Malta’s clear legal framework, licensed exchanges, and strong regulatory environment make it an excellent choice destination for active founders and traders.
7. Czechia: A Legal Gray Zone
Czechia’s legal framework around crypto is as gray as its weather: there are no dedicated laws, and crypto is treated as property. The country has a 15% general tax rate, but enforcement is pretty lax, and most investors “fly under the radar,” making it suitable for dolphins and shrimps but not advisable for major crypto whales.
The Takeaway
If you’re serious about reducing your crypto tax bill, don’t settle for your high-tax home. As Mason concludes:
Source: https://www.thecoinrepublic.com/2025/08/19/want-0-tax-on-crypto-top-7-destinations-for-european-citizens/
