El Salvador Zero Capital Gains on Bitcoin

El Salvador strengthens its position as a Bitcoin country by eliminating the tax on capital gains based on Bitcoin and cryptocurrencies. The measure targets global investors and exempts foreigners who contribute more than 3 BTC from taxes.

If you held crypto for a year or less before selling, profits are treated as ordinary income and subject to the standard federal rates of 10% to 37%. If you held the crypto for more than a year before selling, your profits are subject to more favorable capital gains tax rates of 0%, 15% or 20%. IRS.gov.

To attract foreign investments and to develop the digital sphere, many countries apply 0% taxes on crypto incomes and crypto capital gains. The list of the most crypto-friendly countries includes Portugal, Malta, the United Arab Emirates, Germany, El Salvador, Georgia, Switzerland, and others.