5 Countries Where Crypto Remains Tax-Free
In 2025, five countries continue to provide favorable tax regimes for cryptocurrencies, allowing investors to benefit from tax-free transactions. According to industry data, these jurisdictions include the Cayman Islands, the United Arab Emirates, El Salvador, Germany, and Portugal.
The Cayman Islands impose no income, capital gains, or corporate taxes, attracting crypto traders and funds. The United Arab Emirates offer a zero-tax regime across all seven emirates and have established a clear regulatory framework through specialized crypto authorities.
El Salvador, which adopted Bitcoin as legal tender in 2021, maintains tax exemptions for Bitcoin transactions and continues developing the Bitcoin City project. Germany applies a distinct policy within the European Union, exempting cryptocurrencies held for more than 12 months from taxation.
In Portugal, long-term crypto gains remain tax-free, while the Non-Habitual Resident (NHR) program continues to attract expatriates, despite short-term gains being taxed.
These countries provide investors with legal options to reduce tax burdens and leverage the benefits of crypto-friendly fiscal policies.
