How Crypto Investors Can Still Save Taxes in 2026 – Europe's Shrinking Supply

The landscape of crypto taxation is rapidly tightening. With the implementation of DAC8 and MiCA, traditional tax havens are losing their appeal. But while European options diminish, Asia and overseas territories remain crypto-friendly. Those looking to reorient themselves before the new tax season should know: there are still countries where crypto gains are partially or entirely untaxed.

Asia’s booming markets set new standards

The biggest winners are currently in Asia. The United Arab Emirates have long practiced zero tax rates on capital gains tax and income tax for individual investors – mining remains tax-free unless operated commercially. Dubai is thus developing into the preferred address for professional traders.

Hong Kong follows a similarly investor-friendly course: Long-term crypto positions held by private individuals are not taxed, only frequent trading is taxed up to 17%. Gains classified as business income are subject to regular tax rates.

Thailand has triggered a mega trend in 2024. Five years of income tax exemption on profits from coin and token trading – but only for transactions through licensed domestic platforms of the Securities Exchange Commission. Foreign exchanges and P2P deals are excluded. Crypto lending, staking earnings, and derivatives are subject to progressive rates up to 35%. A joker remains the Long-Term Resident Visa (LTR), which even exempts foreign income from tax if it enters Thailand.

Singapore and Malaysia follow pragmatic principles: The mere purchase, holding, and sale of digital assets are not taxable for private investors – only income from business activities is taxed.

Europe’s turning point: New boundaries from 2026

The European situation is polarizing. Countries long considered paradises are tightening their stance.

Germany remains an undisputed classic of the holding rule. Those who hold digital assets for longer than twelve months pay no tax on gains – even capital gains under 1,000 euros from short sales are exempt. However, staking, mining, and interest income are taxed up to 45%, depending on income progressivity.

Portugal was a long-standing hub but was disillusioned in 2023: Gains from crypto assets held less than 365 days are subject to a flat tax of 28%. Long-term positions remain tax-free. Crypto income (salary, mining, professional trading) are taxed progressively between 14.5% and 53%.

Malta and Gibraltar maintain their attractiveness as long as activities are not classified as business operations. In Malta, frequent transactions are classified as trading and taxed up to 35%. Gibraltar does not tax pure capital gains at all – only business activities are subject to income and corporate tax.

Switzerland remains a special case in Europe. Private individual investors pay no capital gains tax on cryptocurrency sales – a feature preserved despite Switzerland not being an EU member. However, holdings are subject to wealth tax, and staking and mining income are taxed. Professional investors pay income tax on all gains. This differentiation makes the Swiss capital gains tax an interesting option, markedly different from the European norm, and especially attractive due to the absence of capital gains tax on private transactions.

Slovenia and Cyprus mark the turning point: From 2025, Slovenia will introduce a 25% capital gains tax on crypto sales, losing its status as a tax haven. Cyprus follows with a flat 8% tax on coin sale profits – previously exempt.

Georgia and the new hotspots outside the EU

Georgia is increasingly positioning itself as an alternative destination. The country levies neither capital gains tax nor income tax on private trading profits (classified as foreign income), but mining income is subject to 20% income tax. Registering as a sole proprietor with only 1% annual turnover tax (up to 500,000 lari) makes the location attractive for freelancers and employees.

Americas’ exotica: El Salvador, Puerto Rico, and British Overseas Territories

El Salvador remains a pioneer in the Americas. The country does not tax capital gains from crypto transactions at all – neither for residents nor for foreign investors. Mining and staking are also not taxed as long as there is no business activity.

Puerto Rico offers capital gains tax exemption (0%) on profits accumulated after establishing residence. US federal taxes on locally earned income are waived.

The British Overseas Territories – Bermuda, Cayman Islands, British Virgin Islands – complete the picture: Buying, holding, and selling crypto assets are fully exempt from income and capital gains taxes.

The new tax reality: DAC8 and MiCA change the game

From 01.01.2026, DAC8 will be enforced across Europe. Crypto service providers must report user and transaction data to tax authorities. The compliance deadline is set for 01.07.2026. This significantly reduces the practical feasibility of tax optimization – anonymous transactions and underreporting become much riskier.

The trend is clear: Those who want to act before 2026 should know. Europe is shrinking, Asia and overseas territories are growing.