If you’re a business owner who plans to move to another country and acquire residency through investments, you might want to try your hand at cryptocurrencies. These digital assets are among the innovations today that gain mainstream adoption for competitive businesses.
But what are cryptocurrencies? Why is it important for an immigrant investor like you to find a crypto-friendly country if you plan to buy Tether (USDT), Bitcoin (BTC), and other cryptocurrencies and utilize them for business to migrate permanently?
Cryptocurrencies are currencies that operate purely digitally. Among the dominant cryptocurrencies in the market today include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Ripple (XRP), and thousands more. They’re accessible through various devices like a smartphone or personal computer connected to the Internet.
While cryptocurrencies serve the same purpose as government-issued money—used for purchasing goods and services, remittances, and other monetary transactions—they don’t have physical representation because of their digital nature.
This means that there won’t be any paper bills or heavy coins to store in your physical purses or wallets. Instead, cryptocurrencies are kept and managed in special storage called digital wallets. This wallet allows you to store, send, receive, and check your funds in real-time with just a few clicks on a web browser or your smartphone. You can find lots of digital wallets online, such offshore wallets, BTC wallets etc...
If you’re thinking about moving to a different country, there are a lot of things to consider: housing and other living arrangements, education, culture, visas, healthcare services, language barriers, cost of living, banking and currencies, rules and regulations, and working or business conditions.
If you’re a cryptocurrency holder, you probably won’t have a problem bringing your crypto funds with you. This is because of the decentralized nature of these digital assets. They aren’t issued by any government or higher authorities and work solely on their networks independently.
Other benefits of using cryptocurrencies, like BTC, include:
On the flip side, not every jurisdiction sees the potential benefits of cryptocurrencies. In fact, many countries are skeptical about these coins and still don’t accept crypto payments for qualifying investments. This is why it’s crucial to know whether the country you’re considering welcomes these digital assets or not.
Read more about foreign companies and offshore cryptocurrency.
Bitcoin and other cryptocurrencies pave the way for many advantages, especially in the efficiency of business processes. However, this will only work if you're moving to a country that supports and accepts Bitcoin and other digital currencies.
Let’s take a look at some cryptocurrency-friendly countries and how immigrant investors can make the most of their residency.
If you fancy living on an island, you can try Vanuatu—an island country located in the South Pacific Ocean. It’s considered the first and only country that accepts BTC payments in exchange for citizenship and offers one of the fastest investment migration programs in the world.
In terms of crypto regulation in the country, Vanuatu’s government has confirmed that crypto holders can grab citizenship by investing in BTC. What makes it more ideal for crypto immigrant investors is that the government offers investors a Vanuatu passport, valid for five years.
Vanuatu also makes it on our list of the easiest places in the world to get investment citizenship.
Another crypto-friendly country you might want to consider is Portugal, where personal or individual crypto trades are exempt from VAT and there are no capital gains and income taxes.
On the flip side, these tax exemptions don’t apply to cryptocurrency exchanges, crypto or blockchain start-ups, crypto hedge funds, and other businesses that involve crypto-related activities. Such businesses will be charged with a usual rate of 21% on their income.
If you want to fly to Portugal and experience its tax treatment for individual crypto trading, you must make a qualifying investment like a piece of real estate worth 500,000 euros. If you’re looking for a slightly cheaper option, you can try looking for one worth 350,000 euros in urban areas.
Malta is one of the most crypto-friendly countries in the world. If you’re looking to invest in BTC, explore offers in Malta. Day traders are required to pay a 35% business income tax. On the other hand, all crypto-related transactions that aren’t part of trading are excluded from taxes. If you’re looking to move and bring your crypto adventure to Malta, you can apply to the Malta Citizenship by Investment Program.
This high-ranking country in terms of political stability is among the few jurisdictions that support the zero capital gains policy on cryptocurrency income. The Monetary Authority of Singapore also allows some cryptocurrency companies to operate without a license, within a grace period of six months. This is granted under the latest Payment Services Act.
The country’s regulatory body also initiated some crypto-friendly efforts, like the publication of initial coin offering (ICO) guidelines in 2017. What makes Singapore even more attractive to crypto users and investors is that you can spend your BTC and other cryptocurrencies in various merchants in the country. Pretty interesting, right?
Interested in more? Go here for the Best Countries in the world with no taxes.
Australia (Brisbane), the US (California), New Zealand, Liechtenstein and Estonia and Sweden are also among the most welcoming countries in terms of holding and using cryptocurrencies. Like the countries we mentioned earlier, their treatment of digital assets varies depending on their financial regulations and procedures.
That’s why it’s essential to do your research about your desired country’s take on Bitcoin and other cryptos before deciding to move there for good. Aside from the essential living arrangements, take a good look at a country’s legal position and regulation on crypto. This will help you know whether the jurisdiction you’re considering has a positive stance towards Bitcoin and cryptocurrencies, as well as on blockchain technology.
The smartest step an immigrant crypto investor can take is to choose a country where digital assets and other emerging innovations like blockchain are most accessible and accepted.
Remember, we’re living in a digital world and the way we approach and use money is constantly changing. So if you’re thinking of moving to a foreign land where you can utilize your cryptos for business opportunities, it would be better to go to a country with a positive approach to such advancements and developing technologies.
Written by Paxful
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.
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