UAE and Switzerland lead as premier locations with no crypto tax, research finds

A recent research report by Coincub and Blockpit highlights how tax policies, ranging from zero tax in the UAE to high rates in the US, are shaping crypto investment strategies.

As a research report by Blockpit and Coincub reveals, the crypto taxation landscape varies greatly around the world.

The data reveals that the UAE remains an attractive destination for crypto investors, with no personal income or capital gains tax on cryptocurrency gains for individuals. Similarly, Switzerland positions itself as a tax haven and offers zero personal income and capital gains taxes on crypto gains.

In Europe, the situation is more complicated. Some countries provide favorable tax conditions for long-term assets, while others maintain high tax rates. Denmark, for example, has one of the highest personal crypto tax rates globally; 53% of long-term and short-term capital gains from crypto are taxed by the local watchdog.

European long-term crypto tax | Source: Blockpit

The report notes that, on average, most European countries impose relatively high taxes on crypto earnings, but the old continent “has the most tax breaks for keeping your Bitcoin for the long term.”

Meanwhile, the United States has the highest total earnings and average (long-term) tax rates of 17.5% and
Analysts estimate that 23.5% could potentially generate approximately $1.87 billion in tax revenue (in the short term). They warn that higher taxation could “discourage investment,” push crypto activities underground or force investors to move to more tax-friendly regions.

“Countries like Vietnam, Turkey, and Argentina may prioritize attracting crypto investment, encouraging technological innovation, and offering alternatives to unstable local currencies over immediate tax collection.”

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Analysts note that the global approach to crypto taxation will undergo significant changes from 2025, driven by international initiatives such as the Crypto Asset Reporting Framework and the Tax Administration for Reporting of Crypto Asset Activities.

Developed by the Organization for Economic Co-operation and Development, CARF aims to increase tax transparency and combat tax evasion by creating a global framework for reporting crypto transactions. In parallel, TARKA was designed to facilitate cooperation between tax authorities in the 48 participating countries, according to the report.