Tax residncy is an important consideration for anyone who holds large amounts of crypto, as selecting a tax-friendly place of residence can help reduce capital gains tax and pay the minimal amount of tax when converting from crypto to real assets like fiat, which is a practical and important thing to do. So, to minimize your tax liability when it comes to crypto savings, let’s take a look at what is the best tax residency for crypto? It is the UAE, since that is the country with the simplest process to obtain residency. There are also other countries like Singapore, El Salvador, and Portugal that are tax havens as well, but they don’t offer the same level of benefits as the UAE. The UAE combines speed, low cost, and exceptional living standards better than any other option. Since one of the factors to consider before moving to another country is the process of becoming a permanent resident or citizen, we’ll first take a look at what the differences are between the two before moving on to how you can obtain one or the other.
Buying Citizenship vs. Buying Residency
Both residency and citizenship provide you with the legal status of staying and working in a country. However, there are major differences both in the process and the requirements to get each one. Here are the differences between buying citizenship and buying residency:
- Passport and Visa-Free Travel: Having citizenship grants you a passport (which allows you to travel without a Visa to different countries) for the country of which you are a citizen, which is not the case with residency. The passport also grants you the benefit of protection by your country, which is given in case of international or local emergencies, as well as potentially granting you help if you happen to fall into legal problems when abroad.
- Voting Rights: Citizenship grants you full voting rights in that country, while residency typically does not (varies by country).
- Inheritance of Status: Your status of citizenship can often be passed down to your children, which is usually not the case for residency. In some cases, such as the US, having children with citizenship can qualify you for tax exemptions (i.e. the child tax credit), but you should check the law for your specific country if you decide to or already have a child there, since different countries may have different laws.
- Permanent Status: Citizenship is a permanent status, while residency is usually temporary with an expiration date, except for certain cases (i.e. the US green card). For example, in Malta, one may obtain temporary renewable residence that lasts 2 years, or you can get a permanent residence if you go the extra mile, paying more fees and investing a large amount of money into the country.
- Naturalization Required: Naturalization is the process by which someone born in one country becomes a citizen of a second country. To do this, they usually need to live in the country for a certain time, learn the language and culture, and pass background checks. After meeting these requirements, they can apply and take an oath of loyalty. Although it makes more effort, becoming a naturalized citizen offers full rights and benefits, making it a valuable option.
- Cost: Typically, the monetary cost, as well as the time needed, makes buying citizenship more expensive than buying residency.
Obtaining Residency
Many countries offer residency permits to foreigners, which typically grant them the right to live and work in a country for long periods of time (usually ranging from 1 to 5 years). Depending on the country, there can be several ways of obtaining residency, some of which are easier than others. Here are some common and easy ways to obtain residency:
Different Investment Programs
A select number of European and Middle Eastern countries offer various investment programs designed to help foreigners obtain residency. The investment size and the time required to receive residency, as well as individual requirements and restrictions, vary among these investment programs depending on the country. For example, there are two types of residency visas in the UAE that are available through real estate investments: the 2-year investor visa and the 10-year Golden Visa. Both visas require the investor to hold real estate investment past a minimum amount (USD 204,000 and USD 545,000 for the 2 and 10-year visas, respectively). In addition, the property must be purchased in the Freehold Zones, certain areas that allow foreigners to purchase property. The value of the property must remain above the specified value in the visa requirements. Spouses can jointly own the properties given their total values meet the visa thresholds, and mortgages may be given to assist in the purchases (with a down payment of 50% for 2-year visas and 20% for 10-year visas).
Another example is the temporary and permanent residency permits for Malta, of which the requirements differ in several factors. For temporary residency (1 or 3 years), the investor must buy or rent real estate (of which the minimum purchase and rental amounts are USD 258,000 and USD 10,300/year, respectively) and pay an administrative fee (minimum total is USD 316,600 and USD 40,000, respectively). A flat tax rate of 15% is charged on income earned abroad, and the minimum tax a family is required to pay per year to keep the residency is USD 17,500. The rental/ownership of the property must be maintained, and the property cannot be rented out to someone else or subleased. Permanent residency requirements include renting/purchasing real estate (minimum USD 16,400/year and USD 439,400 respectively), paying a USD 58,500 administration fee, paying a contribution fee (USD 70,300 for rentals and USD 35,200 for purchases), and making at least a USD 2,340 charitable donation. Investors should also confirm having at least USD 585,900 (with USD 175,800 in liquid assets) or USD 761,700 (with USD 87,900 in liquid assets). Investors must continue to rent a property, while the property must be owned for at least 5 years.
Holding EU Citizenship
By holding EU citizenship, you have the right to move to any EU country to live, study, work, or retire. While holding EU citizenship and having either a valid ID card or passport, you need only to report your presence (if you plan to stay less than 3 months) and register (if you’re planning to stay more than 3 months) in a different EU country. If you have lived legally in another EU country continuously for 5 years, you are automatically granted the right to that country’s permanent residency.
Marrying a Local Citizen
Marrying a local citizen can lead to an easy pathway to obtaining permanent residency or citizenship in that country. Many countries, such as the U.S. and Canada, grant permanent residency through marrying a local citizen, which can lead to the path for citizenship. One thing to note is that marrying solely for citizenship is illegal, and both spouses will be subject to much scrutiny and checks to ensure the marriage is real and not an arranged one. Besides the appropriate forms one must follow, there may also be conditions that the foreign national must meet to receive permanent residency status. In the U.S., for example, if the marriage has been less than 2 years by the time immigration officers grant the permanent residence, only a conditional green card will be received, which is valid for 2 years. After 2 years, the spouse may file an additional form that removes the conditions and grants a permanent green card.
Where Will You Pay the Lowest Crypto Tax?
An increasing number of developing countries have been offering lower tax rates in order to attract foreign capital, something that high-net-worth individuals have come to appreciate since they’re also looking to minimize their tax burdens. This practice has given these countries and jurisdictions the nickname “crypto tax havens”, though you will usually have to be a tax resident in order to fully benefit from them, which might have you asking, “where will you pay the lowest crypto tax?" In Singapore, since there is no capital gains tax for individuals, if you trade or hold crypto, your profits won’t be taxed as long as they’re for personal use and not part of a business activity. As Plasbit is focused on providing individuals with the power to govern their own finances, we have made a summary of various parameters for different countries when it comes to buying residency, to help you answer the question “What is the best tax residency for crypto?”. In this table, 16 countries are compared using parameters like cost of residency, duration of residency, difficulty level of obtaining residency, lifestyle level (comfort level of living in the country, calculated using the UNDP’s Human Development Index where the closer to 1 the number is, the higher the lifestyle), tax amount, and duration of residency:
| Country | Cost (USD) | Duration | Difficulty Level | Lifestyle Level (Out of 1) | Tax Amount | Duration of Residency |
|---|---|---|---|---|---|---|
| UAE | 204,000 | Weeks to months | 5 steps (Identify residency category, gather documents of proof of investment, submit through portal, undergo medical checks, and pay fees) | 0.94 | 0% | 2 or 10 years |
| Portugal | 290,727 | 12+ months | 5 steps (identify residency category, gather documents, open bank account, and obtain tax ID number, submit through portal, attend biometrics appointment) | 0.89 | 28% (short-term gains), 0% (long-term) | 2–5 years |
| El Salvador | 1,000,000 | Several months | 3 steps (identify residency category, gather necessary documentation, submit application) | 0.678 | 0% | 1–5 years |
| Singapore | 1,800,000 | 4–6 months | 4 steps (application submission, interview, approval-in-principle, investment) | 0.946 | 0% (individuals), 17% income tax (companies accepting crypto or crypto trade) | 6 months to 2 years |
| Malta | 255,840 | 3 months (temporary), 6 months (permanent) | 4 steps (application submission, due diligence, investment, and gathering biometrics) | 0.924 | 0% (capital gains), 0–35% (business income tax on short-term transactions) | 1 or 3 years |
| Malaysia | 150,000 | Months to years | 5 steps (Determine eligibility, gather documentation, submit application, potential interview, finalize investment) | 0.819 | 0% (individuals), 3–30% (professional traders and businesses) | 10 or 20 years |
| Cayman Islands | 2,400,000 | 4–6 months | 6 steps (Determine eligibility, select investment option, make the investment, gather necessary documentation, submit application, undergo due diligence) | 0.877 | 0% | 25 years |
| Puerto Rico | N/A (US Territory), 1.8 mil for US | N/A (US Territory), 71.1 months (US) | 5 steps (choosing an eligible project, filing an immigrant petition, applying for conditional permanent residency, maintaining the investment or creating jobs, petitioning to remove the conditions) | 0.897 | 4% (income tax), 0% (capital gains tax) | 6 months to several years |
| Switzerland | 559,423 | Weeks to months | 4 steps (Choose investment option, submit documentation to await approval, apply for D-type visa, switch D-visa to residence permit, and complete chosen investment) | 0.970 | 0% (individuals), 0–13.2% (professional traders) | 1 to 5 years |
| Georgia | 100,000 | 1–3 months (temporary), 2–6 months (permanent) | 4 steps (Prepare documentation, submit application, pay processing fees, undergo review and due diligence) | 0.844 | 0% (individuals), 15% (corporate tax for businesses) | 6 months – 1 year, extendable up to 11 years |
| Costa Rica | 150,000 | 6 to 12+ months | 3 steps (choose investment option, gather documentation, apply for residency) | 0.833 | 0% (income tax), 15% (capital gains tax) | 2 years |
| Paraguay | 70,000 | 45–60 days | 5 steps (engage a reputable entity, establish a company, create an investment plan, register the company with the public registry of commerce, obtain an investor certificate from the Ministry of Industry and Commerce) | 0.756 | 10–20% (income tax for residents), 10% (companies), 10–15% (capital gains) | 2–4 years |
| Antigua and Barbuda | 100,000 | 6–9 months | 4 steps (choose an investment option, gather documentation, submit application, await due diligence and processing) | 0.851 | 0% | 1–3 years |
| Vanuatu | 130,000 | 1–4 months | 6 steps (await preliminary due diligence, prepare documentation, await further due diligence, make the required investment, submit biometric data, swear the oath of allegiance) | 0.621 | 0% | 1–10 years |
| Serbia | 290,522 | 30–60 days | 4 steps (choose investment path, gather documentation, submit application, attend interview if required) | 0.833 | 15% | 1–3 years |
| Belize | 498–2,988 | 1–3 months | 5 steps (provide documentation as proof of investment, submit other documentation including passport, police record, and letter of intent, submit application, attend interview, and pay required application fees) | 0.721 | 1–25% (income tax), 25% (capital gains tax) | 1 year, renewable annually |
Now, we’ll take a look at each country’s pros and cons when it comes to residing in and investing in crypto, focusing on capital gains and income tax, how it applies to individuals and businesses, and its legal status.
Tax Residency in the UAE
The UAE is a great choice for foreign nationals looking to invest in crypto overseas. While it is legal to own and trade crypto in the UAE, and investors don’t have to pay income or capital gains tax, it is strictly regulated and not recognized as legal tender. In order words, it’s the form of currency that a country deems acceptable for payment.Businesses, on the other hand, pay a 9% corporate tax if their profits exceed 375,000 AED (roughly USD 100,000). One thing to note is that the UAE now reports things like real estate purchases to tax authorities of your origin country. This change in regulations can have a significant impact if you were trying to move wealth out of your origin country to the UAE in this way. Other benefits to living in the UAE, besides the lack of individual income or capital gains taxes, include things like its multicultural environment, the presence of international schools and high-quality medical services, and its high standard of living, making the country a high-tech and luxurious place to live. Some downsides include the high cost of living, the fact that there are several religious restrictions (i.e. public displays of religious practice that contradict Islamic norms, non-muslims attempting to convert Muslims to other religions, etc.), and the harsh climate, which can reach over 40℃ during the summer.
Tax Residency in Portugal
Although crypto profits held for less than a year are subject to a 28% tax, long-term gains are tax-free in Portugal, where crypto is considered a digital asset. While the capital gains tax can be a bit high, the cost of living in Portugal is roughly USD 2,500 to 3,000 per month outside major cities, making it relatively more affordable. And since Portugal is part of the EU, if you eventually get citizenship, it will provide you various benefits, such as the right to live, work, or study anywhere within the EU, border-free travel across the EU within the Schengen area, and enjoy a single market without tariffs or trade barriers between EU countries. Unlike some other countries in this article, Portugal provides another option to obtain residency besides staying in the country for 183 days. If you buy or rent a place in Portugal with the intention of maintaining and occupying it as your main residence, then you can avoid the 183 day stay requirement, which can be a major advantage. It’s important to note, however, that these legal criteria are not very practical. Due to difficulties in determining presence and intent, Portugal sometimes relies on peoples’ own declarations (by associating their Portuguese address with their NIF number) to the tax authorities to determine if they qualify for residency.
Tax Residency in El Salvador
The first country to recognize Bitcoin as a legal tender, El Salvador not only allows for crypto investing but also offers many simplified processes to obtain a crypto license. There is no crypto tax, and people who move to the country are exempt from paying capital gains tax as well on Bitcoin earnings. The cost of living is roughly USD 800-1200 for individuals and USD 2000 for couples. One major downside to living in El Salvador is personal security, as the country was once known as the murder capital of the world. In 2022, gang violence became so bad that the president suspended parts of the constitution and other rights to combat crime. People who consider this country for residency must take into account that it can be a dangerous place to live.
Tax Residency in Singapore
There is a good reason why several crypto exchanges are located in Singapore. It offers a very supportive regulatory environment for various digital currencies. Here, individual investors are exempt from capital gains tax. Businesses don’t pay capital gains tax either, but must pay a 17% income tax if they accept crypto as payment or trade crypto. The cost of living is roughly USD 1400-4000 per month. As of 2025, the Monetary Authority of Singapore (MAS) has implemented new regulations for crypto exchanges meant to protect the exchange users in different cases, a clear benefit for this country. On the other hand, Singapore has set a quota of approved residencies (roughly 30k) per year, meaning that even if you fit all the requirements, you may not be granted residency and will have to wait another year for it.
Tax Residency in Malta
Considered a blockchain island due to minimal taxes on crypto transactions, a structured and implemented crypto regulatory framework, and being supported and encouraged by the government, Malta does not require investors to pay capital gains tax on long-term investments. Professional traders engaged in short-term transactions may pay a business income tax rate of 35%, reducible to 0-5%. Compared to many of the other mentioned countries, Malta is more straightforward and quick in processing it’s residency applications (roughly 3-6 months after it’s received), so it’s a good choice for those looking to acquire a residence fast. The cost of living is roughly USD 1400-1700 per month. In addition, the former CEO of Binance, Changpeng Zhao, also has a residence in Malta.
Tax Residency in Malaysia
It is legal to invest in cryptocurrencies, with set regulations, in Malaysia, with no capital gains or income tax (including foreign-earned income) for individuals. You must pay income tax, however, if you are a professional crypto trader or run a business. The cost of living is roughly USD 500 per month per individual. Other pros include modernized infrastructure, friendly communities with plenty of expat groups, and excellent public and private healthcare. On the other hand, foreigners may find urban traffic congestion, environmental issues, and overdevelopment as downsides.
Tax Residency in the Cayman Islands
Earning most of its revenue through tourism, work permits, and GST (goods and services tax), the Cayman Islands charge no corporate taxes for business and no income or capital gains taxes for individuals in regards to crypto. The main disadvantage is the high cost of living, mostly due to the 25% import duties imposed on all imported goods. Over the past 5 years, the Cayman Islands has had problems with the EU, resulting in them being blacklisted and then placed on the grey lists for some time, causing issues for people with residency there. However, the country has since been fully cleared of any list, making it an attractable option again.
Tax Residency in Puerto Rico
A big reason why so many Silicon Valley billionaires often head to Puerto Rico is its relaxed tax laws. Puerto Rico charges no crypto tax on its residents, while businesses are subject to a 4% federal income tax. The cost of living is roughly USD 2200-2700 per individual. As further evidence of its status as a crypto haven, Michael Terpin, a major crypto persona and YouTuber, has residency in Puerto Rico. One thing to keep in mind is that Puerto Rico will require you to prove that you have strong connections to the country, including relocating and moving all your belongings (your addresses, financial accounts, memberships, driver's license, etc.) there, and residing there for at least 183 days per tax year. This can be a major downside for those who are not looking to live there necessarily or may have to travel frequently for business.
Tax Residency in Switzerland
Known as a “crypto valley”, Switzerland exempts capital gains tax for individual investors, unless crypto is part of their business assets. Professional crypto traders and miners pay anywhere from 0 to 13.2% income tax and 0.5-0.8% wealth tax. Another pro point is that Switzerland has some of the best banking systems in the world. By combining traditional strengths, such as stability and wide service offerings, with innovation in areas such as digital and sustainable finance, wealthy crypto owners can count on a wide range of financial services that are stable, certain, and responsible. One downside to living in Switzerland is the cost of living, with a minimum monthly average of USD 3400. In addition, Switzerland is split into 26 member states, otherwise known as cantons, each with slightly different rules, including tax, and speaking up to 3 separate languages. To take full advantage of your taxes, you should consider the particular laws of the canton you will reside in, before deciding to get a residency in Switzerland in general.
Tax Residency in Georgia
Georgia charges individual investors no tax on either income or capital gains when it comes to crypto. Businesses, on the other hand, pay a 15% corporate tax, lower than many other countries. Thanks to these low rates, it’s no wonder Georgia is considered one of the best crypto havens in the world for both individuals and corporations. An individual will spend roughly USD 615 per month, excluding rent, living in Georgia. One major downside is that you must be physically present in the country for 183 days out of any 12-month period in order to be considered a tax resident, something that people may find problematic.
Tax Residency in Costa Rica
Although not able to be used as legal tender, restricting crypto to private transactions, nor is it actively promoted, crypto is legally investable in Costa Rica. There is a 15% individual capital gains tax, and potential income tax if the cryptocurrency is linked to business activities. The cost of living is cheap in Costa Rica, with an individual expecting to pay roughly USD 1500-2000 to live comfortably in the country. Similar to Georgia and Puerto Rico, you must be present for at least 183 days in the country during a particular tax year to be considered a tax resident.
Tax Residency in Paraguay
Although there aren’t any specific regulations for crypto written in its tax legislation, Paraguay has issued certain guidelines on trading crypto, with a 10-20% income tax on individuals, a 10% income tax on companies, and a 10% and 15% capital gains tax on individuals and companies, respectively. Individuals can expect to live comfortably with as little as USD 500-800 per month. Besides the low cost of living, Paraguay only requires you to be present one day in a full year to maintain residency. However, if you arrived from a country with aggressive tax laws, you must prove you have severed ties with that country to use Paraguay as a tax haven. This includes proving you don’t have any spouses or children living in your origin country, for example.
Tax Residency in Antigua and Barbuda
With a legal framework for virtual asset transactions and businesses, Antigua and Barbuda is considered one of the friendliest jurisdictions in the world when it comes to crypto. Considering that all individual income, capital gain, and wealth taxes are exempt, the country is all the more attractive to crypto investors worldwide (businesses, on the other hand, must pay a 25% tax on profits). The main downside is the cost of living, which is higher than most other Caribbean locations, with monthly costs of roughly USD 1800 (including rent) per individual. And although the tax residency program here doesn’t require you to be a citizen or permanently reside in the country, you do need (1) a residency address, (2) spend at least 30 days per year in the country, (3) have a USD 100,000 annual income, and (4) pay a flat tax of USD 20,000 per year.
Tax Residency in Vanuatu
As recently as March of 2025, Vanuatu became the latest country with a well-regulated framework for crypto investing. There is a 0% tax on all crypto income, including no capital gains tax, income tax, or inheritance tax. There is also a 0% corporate tax on businesses. The main downsides to living in Vanuatu are the relatively lower standards of living and the high cost of living, which typically averages around USD 1100 per month per individual, excluding rent. Also, similar to other countries listed above, you must spend a minimum of 183 days a year in Vanuatu.
Tax Residency in Serbia
Not considered legal tender in Serbia, crypto is subject to a 15% capital gains tax and 15-20% income tax for both individuals and businesses. Including rent, an individual can expect to spend roughly USD 600 to 1500 per month living in Serbia. You are considered a tax resident if you spend over 183 days a year in the country. One thing to note is that Serbia has been trying to get into the European Union for years, though unsuccessfully due to political reasons and, more recently, their close ties with Russia have also created pressure from European countries to join the boycott against Russia. This, along with the current Russia-Ukraine war, have taken their toll on the Serbian economy, resulting in a lower quality of life. In addition, before looking to be a resident in Serbia, you should consider that if Serbia successfully enters the EU in the future, then it won’t be able to be a tax haven anymore.
Tax Residency in Belize
Although crypto is considered legal in Belize, there is still a lack of a clear legal framework regarding its taxation. Despite that, current guidelines state that individual and business income tax currently range from 1-25% and capital gains tax is set at 25%. It costs roughly USD 2000-3000 for individuals to live comfortably in Belize. Not only must you spend at least 183 days a year in Belize to be considered a tax resident, but the country also doesn’t protect you from US taxes (including contributing to both countries’ social security systems). This, coupled with its relatively higher cost of living, should be considered carefully before applying for tax residency.
Overall Consensus
Of all the countries covered in this list, the UAE stands out from the others for several reasons. Not only does the UAE provide the shortest amount of time to issue a residency, but it’s also one of the cheapest and most secure options. Plus, living in the UAE means receiving some of the most generous crypto tax exemptions in the world and experiencing one of the highest standards of living. This unique combination is why the UAE is considered an ideal location for investing in and managing crypto, such as cashing out (which is something we at PlasBit can especially assist with), and why it’s often the answer to the question “What is the best tax residency for crypto?”.
Which Tax Haven is Best for Crypto?
Even though the crypto market is still developing (hence, regulations in different countries may change over time), the fact that several countries not only legally accept cryptocurrency but also offer little to no tax rates on it helps answer the question “which tax haven is best for crypto?” Switzerland, also known as the "Crypto Valley," stands out thanks to its lack of capital gains tax, clear regulations, and reliable banking system. El Salvador is also a tax haven, but due to its lower standard of living and high crime rates, it's a less preferred option. Puerto Rico is another possibility, but the process of obtaining the necessary approvals and residency takes a long time, including a requirement to physically stay in Puerto Rico for 183 days a year, which makes it less attractive.
Is Portugal Tax-Free?
Portugal is a popular European crypto tax haven that is known for its warm climate, low cost of living, high tech innovations, and investor-friendly environment, making it a highly preferred location both in terms of business and personal interests. With that said, there are also some challenges when it comes to crypto investing in Portugal, which begs the question, “Is Portugal Tax-Free?”. No, it is not, because in Portugal, crypto gains are taxable, however, if the assets are held for at least one year before being sold, they are exempt from capital gains tax. Up until January 2023, Portugal was known as a crypto tax haven, with no taxes applied to profits as long as the activity was personal and wasn't considered a business activity. However, since new tax regulations came in in January 2023, gains from selling crypto held for less than a year are now taxed at rates ranging between 14.5% and 48%. Moreover, starting February 2024, residents are required to declare their crypto holdings in their annual tax filings to the Portuguese Tax Authority.
Conclusion
We believe the answer to the question of what is the best tax residency for crypto? is the UAE, due to the reasons mentioned throughout the article. However, we at PlasBit understand that every investor’s situation is different, so we recommend that you reflect on your circumstances and personal situation, including the amount of money you have, to determine which country best fits you, since there are different countries that are considered tax havens. Also, remember that if you’re in need, consulting a professional advisor is always a good option.
