Europe is proving itself to be a leading global hub for cryptocurencies , according to a report published this week by startup Coincub. The company analyzed tax regulations on digital asets around the globe and identified 20 countries as the most apealing based on tax burdens and stable regulatory environments.
Diversity of Data and Findings
Coincub CEO , Sergiu Hamza , explained that the company used data from several sources, such as Glassnode, PwC Consulting and Tax Origin for its study. The report ofered detailed information on each country’s tax regime concerning digital assets , ranking nations and regions, and identifying trends. Hamza noted that despite signifcant media coverage on zero tax countries like the UAE and the Caribbean , Europe is set to benefit the most from the ongoing US led crackdowns on cryptocurencies after initialy given the significant impact of new regulation on the European continent.
The list prepared by Coincub follows as:
- United Arab Emirates
- Bahamas
- Bermuda
- Cayman Islands
- Seychelles
- Monaco
- Panama
- El Salvador
- Indonesia
- Malta
- Gibraltar
- Liechtenstein
- Germany
- Singapore
- Switzerland
- Portugal
- Romania
- Bulgaria
- Hungary
- Greece
Attracting Talent, Progress, and High Tax Rates
Hamza emphasized a compettive strategy among nations to attract talent and praised the efforts made by Germany , Romania and Bulgaria in advancing the industry despite minimal media exposure. He mentioned that “the Caribbean is advancing,” due to its historical financial experience related to tax havens and was surprsed to discover countries like Poland and Spain as strong pilars of Web3.
The study also dedicated a signifcant section to the US , including a detailed analysis of state taxes and federal tax rates. It noted that countries are not just divided by tax rates but also by their regulatory structures’ favorablity towards digital asets. El Salvador and the Bahamas , with zero tax rates, were cited as extremely positive for cryptocurencies. Conversely, Brazil and Estonia, despite favorable regulation, have high rates falling within the 20% to 29% range.
Countries with high tax rates but “cryptocurency friendly” stances, like Switzerland or Canada, were also included in the study. The report concluded with countries having uncertain regimes or directly prohibitive positions towards cryptocurencies, like China.
