Introduction
The rules and regulations of cryptocurrencies vary from country to country. In most of the European countries, digital currencies are legal, and many merchants accept payments in crypto. However, there is a difference in how the government of different countries treats cryptocurrencies across Europe.
Whether you want to start a crypto-based business or spend your earnings, some countries are best for that reason. In this article, you will learn about the most favorable European countries for cryptocurrencies.
Crypto-Friendly Countries in Europe
The below list of countries in Europe offers you to spend and conduct other business activities with cryptocurrencies.
- Estonia
- Switzerland
- Denmark
- Germany
- Slovenia
The above European countries are the most favorable for cryptocurrencies. Explore what you can do with digital currencies in these countries.
Estonia
Estonia is one of the best countries in Europe where crypto-based companies want to set up their business. The important question is; why should you consider this country for cryptocurrencies? Here are some reasons for which it’s one of the best countries for cryptos.
- There are several Bitcoin ATMs in Estonia.
- The government plans to create a crypto token called “Estcoin,” which is a great initiative in the crypto space.
- It offers the best regulatory environment for safe and secure ICOs. Moreover, Estonia regulators are eager to help and guide you.
- you don’t have to pay value-added
- Starting a crypto-based business can cost you lower as compared to other countries that don’t support crypto.
Switzerland
Switzerland is another ideal country for starting a crypto-based business and other purposes. In 2018, the Economic Minister announced that the country plans to become the first “crypto nation” in the world. Here is why it’s a suitable country for crypto.
- The country has crypto-friendly regulations and also offers better transparency in policies.
- It’s one of the best countries for starting a crypto-business.
- Recently, the country has also announced that it will accept crypto payments.
However, you need to consult a professional to know about tax regulations as the taxes are different for individual and professional traders.
Denmark
Denmark treats cryptocurrencies as financial instruments and capital property. It’s one of the best countries for cryptocurrencies for the following reasons:
- Cryptocurrencies are legal in Denmark.
- The government has specific rules as anti-money laundering law for cryptocurrencies.
- It also offers tax-deductions for losses in crypto investments. However, it’s not applicable for business activities like the value of cryptocurrencies decreased after receiving them as payment.
- Cryptocurrencies are exempt from value-added tax.
Germany
Germany is also among the top countries in Europe that allow cryptocurrencies. The German government has supportive regulations for cryptocurrencies. Here is why Germany is an ideal country for crypto trading and investing.
- Although cryptocurrencies are taxable, you don’t have to pay taxes if you hold them for more than one year.
- Crypto earning less than 600 Euros is also tax-free.
- The government announced that cryptocurrencies are like properties.
- The crypto regulations are managed by banks and financial institutions to ensure no criminal activities occur.
Slovenia
Slovenia is also one of the best countries in Europe for cryptocurrencies. It’s because of the following reasons:
- The government treats it as virtual currencies. So, it can be used as a medium for the exchanging goods and services.
- Income from trading due to price fluctuations is not taxable for individual investors. So, many individual crypto investors use https://ethereum-code.me for investing in Bitcoin and other cryptocurrencies.
- Mining cryptocurrencies is not subjected to value-added tax (VAT).
The Bottom Line
The above European countries offer supportive regulations for cryptocurrencies. Moreover, some countries offer several tax benefits. Tax-exemption may be a great way to support cryptocurrencies. However, proper infrastructures and regulations are essential to minimize the crimes related to cryptocurrencies. Are there anything that you do not understand about this article, if so drop them in the comment section.
