Several countries have implemented tax incentives to support crypto market participants. These nations have become top destinations for traders, long-term investors, and global digital asset entrepreneurs.

In contrast, Indonesia’s government has decided to increase income tax (PPh) rates on crypto assets starting from the 2026 tax year. Meanwhile, value-added tax (VAT) on crypto transactions will be waived.

This policy is regulated through the Minister of Finance Regulation (PMK) Number 50 of 2025, which outlines the treatment of VAT and income tax for crypto asset trading transactions. The regulation was signed by Minister of Finance Sri Mulyani Indrawati and came into effect on July 25, 2025.

This measure reflects a growing focus on supervising digital asset trading, as digital adoption in Indonesia continues to expand rapidly. However, not all countries are taking the same approach.

Here are five countries considered crypto tax havens in 2025, as cited by cointelegraph.com:

1. Cayman Islands

The Cayman Islands remain a top choice for individuals seeking tax exemption on crypto assets. This country does not impose personal income tax, capital gains tax, or corporate tax—including on digital assets.

Since April 2025, crypto regulations in the country have become more defined with the enactment of the Virtual Asset (Service Providers) Act. This legislation provides a legal framework allowing crypto exchanges and businesses to operate legally.

2. United Arab Emirates (UAE)

The UAE continues to uphold its reputation as a crypto-friendly nation by offering full tax exemptions on all digital asset activities. From buying and selling, staking, mining, to crypto asset sales, none of these are subject to taxation.

Regulatory bodies like Dubai’s Virtual Asset Regulatory Authority and the Abu Dhabi Global Market ensure that crypto regulations remain clear and well-structured. Coupled with attractive visa options, world-class infrastructure, and legal certainty, the UAE has become a magnet for digital asset entrepreneurs.

3. El Salvador

El Salvador became the first country to legalize Bitcoin as legal tender back in 2021. To this day, the country does not impose taxes on Bitcoin transactions, ownership, or spending.

The development of “Bitcoin City”—a futuristic zone with no income, property, or capital gains tax—continues to attract crypto investors. This makes El Salvador one of the most forward-thinking tax-free digital zones globally.

4. Germany

Although not typically seen as a tax haven, Germany offers major benefits for long-term crypto holders. Digital assets held for over 12 months are exempt from tax upon sale or use.

For short-term trades, capital gains of up to €1,000 per year are also tax-free. This policy positions Germany as a relatively crypto-friendly country within the European Union.

5. Portugal

Portugal remains a favored destination for crypto investors seeking tax savings. Profits from digital assets held for more than one year are exempt from capital gains tax.

Those registered under the Non-Habitual Resident (NHR) scheme before March 31, 2025, are also granted tax exemptions on most foreign income. Despite the recent implementation of taxes on short-term gains, Portugal continues to be an attractive option for crypto expatriates and retirees.