Crypto-Friendly Countries: The crypto bull market has ended. Your portfolio is overflowing, and you’re ready to settle down in a new home. The question now is: where is the best place to do that? In this review, we’ll explore five countries that are not only incredibly tax-friendly but also offer an exceptional quality of life.
If you’re dreaming of early retirement—and let’s be honest, who isn’t—this guide is for you. Naturally, the countries we’ve selected need to be tax-friendly; otherwise, you’d be losing a substantial portion of your crypto gains. However, taxes aren’t everything. A zero-tax country isn’t ideal if it’s challenging to relocate, housing is poor, or safety is a concern. That’s why we’ve taken a broader view in our selection.
This list is in no particular order, so let’s dive right in.
1. United Arab Emirates (Dubai)
Crypto-Friendly Countries: Dubai has become a top destination for crypto investors, thanks to its significant tax advantages and clear regulations. Crypto investors enjoy 0% income and capital gains tax—an undeniable perk. However, if you operate a crypto-related business, you’ll be subject to a 9% corporate tax and 5% VAT on crypto payments.
Dubai is also a global leader in crypto regulation, with VARA (Virtual Asset Regulatory Authority) overseeing compliance and licensing of Virtual Asset Service Providers (VASPs). VARA aims to make Dubai a major blockchain innovation hub while ensuring investor protection and economic growth.
Cost of Living & Lifestyle
- High cost of living: A single person’s expenses range from 5,600 to 9,300 AED per month.
- World-class infrastructure, luxury lifestyle, and safety.
- No crime—Dubai is one of the safest places on earth.
- Superfast internet and high connectivity.
- English is widely spoken, making communication easy.
Residency Options
- Various work visas, including freelancer and company owner options (renewable every 2 years).
- Golden Visas (5-10 years) available via business investment, property purchase, or special talent.
- Retirement visas and other long-term options.
The only downside? Dubai’s summers are extremely hot, but the city is designed to be resilient to the heat with air-conditioned infrastructure.
2. Portugal
Crypto-Friendly Countries: Portugal was once the only European country with zero crypto tax. However, since January 2023, crypto held for less than a year is subject to a 28% capital gains tax. The good news? If you hold your crypto for more than a year, your profits remain tax-free—making Portugal perfect for long-term investors. Portugal is perfect for the hodlers and a bit less for the traders.
Cost of Living & Lifestyle
- Affordable: A family of four can live comfortably for €2,300 ($2,500) per month.
- Beautiful landscapes: Beaches, historic cities, and 300 days of sunshine per year.
- Excellent infrastructure: Reliable internet and high-quality healthcare.
- Safety: Ranked 7th safest country globally in 2024.
- English is widely spoken, though Portuguese is needed for government dealings.
Residency Options
- D7 Visa for retirees or passive income earners.
- Golden Visa for investors (via capital transfer or business creation, but not property investment since late 2023).
- Work Visa (requires proof that no local candidates were available).
Portugal remains a top choice for crypto investors, offering an excellent balance of tax benefits, cost efficiency, and quality of life.
3. Georgia
Crypto-Friendly Countries: Georgia is one of the most crypto-friendly countries globally, primarily due to its favorable tax policies. Crypto investors pay zero capital gains tax or VAT since the Georgian Ministry of Finance doesn’t consider crypto as Georgian-sourced income. However, businesses must pay 15% corporate tax and 5% dividend tax.
Cost of Living & Lifestyle
- Affordable: A single person’s monthly expenses are 4,300 GEL ($1,500), and a family of four spends about 7,600 GEL ($2,700).
- Breathtaking nature: Mountains, valleys, and forests.
- Climate varies by region: Dry summers in the east, humid in the west.
- Road infrastructure is lacking; public transport is unreliable.
- Healthcare is not fully free but offers substantial universal coverage.
- Safety: Ranked 20th in the world on the 2024 International Crime Index.
Residency Options
- Category D Visa (Work visa D1 or real estate investor visa D5).
- Straightforward visa process compared to other countries.
Georgia is perfect for those looking for low taxes, a low cost of living, and adventure-filled landscapes.
4. Puerto Rico
Crypto-Friendly Countries: Though not a country but a U.S. territory, Puerto Rico is a hotspot for American crypto investors. Residents pay no capital gains tax on crypto profits if they reside there for at least 183 days per year.
Cost of Living & Lifestyle
- Cheaper than mainland U.S.: Monthly expenses are $2,600 for a single person and $4,900 for a family of four.
- Tropical paradise: Beaches, rainforests, and bioluminescent bays.
- Hurricane-prone, so disaster preparedness is necessary.
- Infrastructure varies: Roads and internet are better in urban areas.
- Healthcare is costly and often below U.S. standards.
- Spanish is the primary language, but many residents are bilingual.
Residency Options
- Easy for U.S. citizens (no additional visas required).
- Non-U.S. citizens need work visas and eventually a green card.
Puerto Rico offers fantastic tax advantages, but infrastructure and natural disaster risks should be considered.
5. Malta
Crypto-Friendly Countries: Known as Blockchain Island, Malta is another fantastic choice. Crypto held over 12 months is tax-free, while short-term holdings are taxed as personal income (15-35%).
Cost of Living & Lifestyle
- Moderate expenses: €1,500 for individuals and €3,900 for a family of four.
- Rich history and culture: Ancient temples, architecture, and festivals.
- Mediterranean climate: Hot summers and mild winters.
- Highly rated healthcare, free at point of use.
- Competitive internet speeds (goal: 10 Gbps connectivity).
- English is an official language, widely spoken.
- One of the safest countries in Europe.
Residency Options
- EU Citizens: Easy to obtain ordinary residency.
- Non-EU Citizens: Need proof of financial stability, employment, and accommodation.
- Permanent residency after five years.
Technical Comparison of Crypto-Friendly Countries
| Country | Income Tax | Capital Gains Tax | Corporate Tax | Cost of Living (Single) |
|---|---|---|---|---|
| UAE (Dubai) | 0% | 0% | 9% | High ($1,500+) |
| Portugal | 0% (1yr+) | 28% (<1yr) | 21% | Low ($2,300) |
| Georgia | 0% | 0% | 15% | Low ($1,500) |
| Puerto Rico | 0% | 0% (183+ days) | Varies | Medium ($2,600) |
| Malta | 15-35% | 0% (1yr+) | 35% | Medium ($1,500) |