Efficient, safe, and unregulated by a central banking authority, cryptocurrencies are widely used throughout the world. It is plain and simple: cryptocurrency is here to stay as more and more governments are including digital currency into their economies. As cryptocurrency is democratizing so are the assets you can acquire with it. This article examines whether it’s possible to buy citizenship with cryptocurrency.
Buy Citizenship with Cryptocurrency
The last decade has seen a surge in the launch of Citizenship by Investment Programs allowing qualifying investors and their families to get residency in exchange for an investment in a country’s economy. These immigration schemes have significantly boosted national economies, contributing to the development of private and public sectors.
If traditional currencies remain as the mainstream way to proceed with a Citizenship by Investment application, some countries have recently authorized crypto payment.
Considering the increasing popularity of cryptocurrency, especially as a new model of payment, there is no doubt that the most crypto-friendly countries are revolutionizing the way cryptocurrency is used, setting an example for other countries to follow suit.
Vanuatu crypto passport
The Vanuatu government has recently approved the payment of Citizenship by Investment applications with cryptocurrency. However, the cryptocurrency must be converted into an investment in dollars before the government will grant investors a Vanuatu passport. The so-called Vanuatu crypto passport — valid for a duration of five years — allows investors and their families to reside in Vanuatu without any stay requirements.
Antigua and Barbuda’s soon-to-be crypto passport
Antigua and Barbuda is also in the process of accepting cryptocurrency payments for their Antigua and Barbuda Citizenship by Investment Program. This beautiful Caribbean island is an ideal place to pick for a second citizenship, as it recognizes dual nationality, and its passport allows visa-free travel to over 140 countries. Antigua and Barbuda’s residents and citizens also enjoy relaxed tax conditions since there are no capital gains, inheritance tax, income tax or wealth tax on worldwide income or assets.
Best citizenship for cryptocurrency
If you are a cryptocurrency investor, you are probably aware that some countries are doing better than others in terms of crypto legislation. Crypto investors are most likely to want to relocate to a country that doesn’t impose cryptocurrency taxes and encourages crypto-activities. Below is a list of some of the best countries for cryptocurrency.
Switzerland is considered as one of Europe’s crypto havens. The country does not require individuals who buy, sell or hold cryptocurrencies for personal use to pay tax on their capital gains. However, income derived from mining (or self-employment income), is taxed through income tax.
Responsible for many pro-crypto initiatives and with a policy of zero capital gains taxes on crypto incomes, Singapore is one of the most crypto-friendly countries in the world. The government has even encouraged several cryptocurrency businesses on its shores.
As a Fintech hub, Malta has acquired the reputation of a crypto-friendly country. In 2018 it established a legal framework for blockchain technology, paving the way for the establishment of numerous cryptocurrency companies. While Malta does not tax long-held digital currencies either for capital gains or VAT, crypto trades executed within the day are treated similarly to day trading in stocks and foreign exchange.
Crypto investors who are looking to relocate to Malta have the possibility to apply for the Malta Citizenship by Investment Program. The scheme grants qualifying investors and their families the opportunity to get full residency rights in Malta, along with a Maltese passport within a year.
A true haven for investors and freelancers, Portugal is a very crypto-friendly country. If businesses pay taxes on any profits accrued from cryptocurrency gains, cryptocurrency is exempt from VAT tax and personal income taxes. However, the taxation of certain transactions in cryptocurrency will be implemented as proposed in the country’s budget for 2023.
The Portugal Golden Visa program has been a real life-changer for investors seeking to relocate to Portugal to conduct crypto businesses. In exchange for economic investments, foreigners are granted Portuguese residency, with the option to receive a Portuguese passport in five years’ time. Companies like Global Citizen Solutions permit payment in cryptocurrencies like Bitcoin, Ethereum, and Ripple. The payment for Portugal Golden Visa services is processed through the portal Coingate.
Frequently Asked Questions about buying citizenship with cryptocurrency
Where can I buy citizenship with cryptocurrency?
Although Vanuatu is a very crypto-friendly country, it’s not possible to buy citizenship directly with crypto. The investor must convert it into dollars in order to make the qualifying investment. Antigua and Barbuda is in the process of accepting bitcoin as a means of payment for their Citizenship by Investment program.
What is the best citizenship for crypto investors?
The best citizenship for crypto investors is in crypto-friendly countries such as Vanuatu, Antigua and Barbuda, Malta, Portugal, Singapore, and Switzerland.
What is the most used cryptocurrency?
The most used cryptocurrency is bitcoin.
Is Portugal a crypto-friendly country?
Yes, Portugal is a crypto-friendly country. If businesses pay taxes on any profits accrued from cryptocurrency gains, cryptocurrency is exempt from VAT tax and personal income taxes. Taxation of assets in cryptocurrency will be implemented according to the country’s budget for 2023.
What are the most crypto-friendly countries?
Some of the most crypto-friendly countries are Vanuatu, Malta, Portugal, Ukraine, the US, Australia, and Estonia (to name a few).