It is common for tax agencies tobe hunting for those who are avoiding taxes. It is quite a beautiful thing tobe in a situation where it is entirely and sanctioned by the state to not paythe taxes.

So, it is natural forcrypto-enthusiasts to acquire some tax gaining residency in onejurisdiction. This also means that youwill not be taxed in yet another residency. In the US, taxes are by citizenship. And the income from across the world is liable.

Germany has provided an exemptionfor Bitcoin transactions from VAT. Germany has to state that bitcoin is not a currency and therefore thecapital gains applicable on the cryptocurrency will be relevant if someone heldBitcoin for more than one year. The taxis not from the standpoint of income. The benefits do not accrue from the perspective of capital gains due tothe exemption. Businesses are supposedto pay taxes on their profits, which are derived from the Bitcoin throughcorporate income taxes.

Those who are an EU citizen arefree to take up a residency in Germany. It is possible for non-Europeans to take up residence and to apply for apermit after that. The tax residency isdecided in Germany based on whether the person stayed there for six months andmore. In cases of dual residency, thetax residency is determined by "the contracting state in which theemployee has a center of vital (personal and economic) interests."

Businesses which are based inSingapore buy and sell virtual currencies during their business, and they willbe taxed off their profits like it were an income. For those who spend morethan 183 days in Singapore, the country provides visas and permits for foreignentrepreneurs — thus making it easy for applicants who are qualified toestablish their residence in Singapore.

Portugal does not tax forcryptocurrencies, for buying, selling or holding. Those who own a house in Portugal or thosewho stay in a country for more than 183 days will be considered eligible for atax residency. While EU citizens canmove to Germany, they need to be holding a registration certification if theyshould stay for more than three months.

In Malta, tax residency isdecided by regular residency. Theminimum tax is applicable for those who are on the Global Residence Program of15,000 Euros. In Malta trades within aday are considered to be at par with trading stocks or currency pairs and aretaxed as a business income.