Crypto Tax: Which Countries Have New Rules in 2023?

Paigambar Mohan Raj
Source: CoinLedger

Global regulators are still formulating plans for handling cryptocurrencies, which function differently from conventional financial assets. Some nations have accepted crypto and implemented rules. Meanwhile, others have adopted a more cautious stance due to worries about fraud, money laundering, and market volatility. Authorities have taken several steps that influence crypto holders, including enacting new tax laws. As we approach the end of another fiscal year, let’s look at some of the tax changes that have come about in different countries regarding crypto.

Crypto tax changes from 2023


Crypto used to be untaxed in Portugal until the end of 2022. Nonetheless, the country is still very friendly to the asset class. Cryptocurrency assets sold after being held for less than a year are subject to a 28% capital gains tax. The best part is that cryptocurrency held for beyond a year is exempt from capital gains taxes. Therefore, Portugal is great for long-term hodlers. Mining and frequent trades are examples of commercial activity and will be considered self-employment and subject to social security and income tax.


The United Kingdom is the most recent nation to tighten its crypto-taxing regulations. The country will include a new, distinct category for crypto assets on its tax return forms starting with the 2024–2025 tax form.

Net profits will be subject to income tax at 20%, 40%, and 45% if you reach the trading level. The tax percentage will depend on which bracket income falls under. The British government projects that starting with the fiscal year 2025–2026, this shift in crypto reporting will generate £10 million ($12 million) annually.

Hong Kong:

Hong Kong intends to enact new regulations in June that will call for cryptocurrency trading platforms to get Securities and Futures Commission licenses. In its proposal to regulate trading platforms for virtual assets, the agency has already started a consultation process. However, cryptocurrencies are not considered taxable assets in Hong Kong.

Tax-free countries

Apart from Hong Kong, there are several other countries where there is no tax on crypto. Switzerland, Singapore, Bermuda, and Dubai are some of the popular destinations for crypto traders to operate without paying capital gains taxes.

Puerto Rico is another popular destination, especially among Americans. If Americans seek Puerto Rican residency, they can benefit from paying 0% capital gains tax in exchange for paying Puerto Rico 4% of their income. Because of this, affluent Americans have flocked to the island in large numbers.

Belarus on the other hand is popular among Europeans. The government has decided not to tax crypto activities, such as day trading and mining. Furthermore, there is no corporation tax on the currency. It should be noted that this legislation was designed to remain in force until 2023, and it is unclear how this may change as time goes on.