Securing Wealth Through Crypto and Investment Migration: Future-Proof Strategies 

“Hey, someone told me you’re the passport guy,” the 30-something man announced as he approached me on a dusky evening by the sea. “What’s the best country for crypto?”

That was mid-April, in Dubai, at an afterparty for one of the cryptocurrency conferences I attend every year. I’ve become known in crypto circles as “that guy who knows about second passports and visas.” And, so, I’m regularly—and increasingly—fielding questions from crypto traders who want to know about the crypto friendly countries where they might seek a second passport as a way of limiting or eliminating crypto tax obligations back in their home country.

At first blush, that combo of crypto and passports might seem odd.

But the two are quite simpatico, because these days protecting wealth legally and as best you can from government taxation is the path to growing generational wealth for those who recognize that crypto is very much the future of finance—and pretty much everything else in life.

The new crypto bull market is spinning out investors right now who are making big bags of cash from sometimes very little bags of initial capital. I’m talking about people who are turning a few hundred or a few thousand dollars into hundreds of thousands, even a couple million dollars, sometimes overnight (literally) or over a few weeks or a couple months.

Many of them want to preserve that wealth as best they can, and as part of that pursuit they’re wanting to get their money into jurisdictions that have a friendly approach to crypto.

For Americans, the issue is a bit moot because Uncle Sam’s long arm of taxation knows no geographical boundary. Crypto profits are taxed no matter where an American taxpayer alights. But for other nationalities from countries with territorial tax schemes, relocating one’s life to a country where crypto taxation is light, or better yet non-existent—can mean saving tens of hundreds of thousands of dollars in legally avoided taxes.

So, what countries are friendly to crypto?

Frankly, several countries qualify—including El Salvador, Germany, Panama, Vanuatu and some others. But I’m going to limit my answer to countries I think make the most sense for the most people. While El Salvador is a phenomenally beautiful country, the $1 million price tag for a passport is unrealistic. And while Vanuatu offers citizenship and a passport for as little at $130,000, the European Union, displeased with Vanuatu’s “citizenship by investment” program and fears of tax fraud and money laundering, recently proposed nixing the visa waiver that allowed Vanuatu citizens visa-free access to the EU. That’s take a lot of the bloom off that particular rose.

Thus, this is my list of the countries that make the most sense for a crypto-friendly second passport…

These days, you almost can’t say the word Portugal without crypto slipping into the conversation. The country has become widely known globally for its crypto-friendly views. Indeed, the Iberian country battles with Dubai for the sheer number of crypto conferences held locally each year.

The country has enacted numerous laws dating back as far as 2017 that treat crypto favorably, which has helped establish Portugal as a place that attracts lots of crypto startups.

In short: All crypto-related activities are exempt from Portuguese income taxes and capital gains taxes, aside from short-term gains on crypto investments held for less than a year.

Residency-by-investment is still available for €250,000 through a range of non-real-estate options, and Portugal offers easy access to residency through the D7 (passive income) or the D8 (digital nomad) visas. Income requirements are minimal: Less than €1,000 per month for the D7, and about €3,200 monthly for the D8. As with most countries, you become a tax resident after living locally for 183 days each year.

Those who qualify for the revamped and more-challenging-to-attain Non-Habitual Residence program (NHR) could wisely establish an offshore LLC through which they run their crypto operations. The dividends the LLC pays out would be exempt from Portuguese taxes.

The island state of Malta sits in the middle of the Mediterranean, a nubbin of land just off the southern coast of Sicily. With its Maltese Permanent Residence Program, Malta has long been a favorite of the moneyed crowd looking for quick and easy access to residency that allows unfettered access to the European Union.

Malta is unique in that the country recognizes crypto as a medium of exchange, a unit of accounting, and a store of value. That pro-crypto stance explains why various crypto firms including Binance, Chiliz, and Crypto.com, among others, are based in Malta.

At an individual level, Malta imposes no taxes on crypto profits, so long as one isn’t trading professionally.

Professional traders face a 35% corporate tax—in theory. In practical terms, however, that tax rate is reduced to between 0% and 5%, depending on how the trading business is structured, which is why is behooves an individual crypto trader in Malta to run trading operations through an LLC or some other corporate structure.

Maltese citizenship can be pricey at roughly €600,000. But residency is much more affordable: Rent a local property for at least €10,000 per year with a lease for at least five years; contribute €58,000 to the Maltese economy; pay a non-refundable €40,000 admin fee; and contribute €2,000 to a non-governmental organization on the island. With that, and a long wait time as due-diligence unfolds, you’re a citizen of Malta.

Like a lot of Caribbean nations, Antigua and Barbuda impose no taxes on income, capital gains, or dividends. That makes the dual-island chain lying to the southeast of Puerto Rico a crypto haven.

Adding to the alure is the relative ease of obtaining citizenship and a local passport.

Beyond a host of usual documents and paperwork (passports, applications, etc.) all you need to obtain local citizenship is an investment of $200,000 in an approved property that, then, must be held for at least five years. Or, make a one-time, $200,000 contribution to the government.

Another Caribbean dual-island nation with a crypto tax regime very similar to Antigua and Barbuda. Like its neighbor, St. Kitts and Nevis imposes no income or capital gains tax on crypto assets owned and managed offshore.

And it you run your crypto business operations through an LLC, then that business income is free of taxation as well.

St. Kitts and Nevis doesn’t offer a Golden Visa option (i.e. residency) but citizenship and a passport are available in as few as four months with an investment of $250,000 in the Sustainable Island program, or $400,000 if you want to own local real estate instead.

Down at the bottom of Central America, Panama’s laissez-faire approach to taxing capital gains applies to crypto as well, meaning there are no taxes on crypto profits. 

But if crypto is the main source of income from a business activity, then that’s reportable as business income and taxed at a 25% rate. Panama, however, runs a territorial tax system, so again if you run a crypto-trading business through an offshore corporate structure, then your Panamanian business tax plunges to 0%. 

At the end of the day, the world is increasingly moving toward a crypto-based economy, despite what naysayers whine about incessantly. Familiarizing yourself with crypto taxation options globally can help you plan for the generational wealth all of us crypto traders are aiming for.