How This Data Was Built

Every country is classified into one of five tiers based on its effective individual tax rate on cryptocurrency capital gains. The tier reflects the actual rate an individual investor would pay — factoring in holding period benefits, exemptions, flat vs. progressive structures, and any crypto-specific carve-outs.

The “effective individual rate” is the central metric. It represents the actual percentage of capital gains tax an individual crypto investor would pay on profits from buying and selling crypto assets, under the most common scenario.

Factors included

• →Statutory capital gains tax rate (flat or top marginal)
• →Holding period benefits (e.g., Germany’s 1-year exemption, Belgium’s normal management doctrine)
• →Crypto-specific exemptions or carve-outs
• →Territorial taxation rules (e.g., countries that only tax domestic-sourced income)
• →Distinction between professional traders and individual investors
• →Progressive vs. flat rate structures — using a representative mid-range scenario

Beyond capital gains, each country profile includes guidance on how five key crypto activities are taxed. These are assessed based on official guidance, published rulings, and professional services analysis.

The Foreign Account Tax Compliance Act (FATCA) is a US federal law enacted in 2010 requiring foreign financial institutions worldwide to report the financial accounts of US persons to the IRS. Countries with Intergovernmental Agreements (IGAs) are marked as FATCA Partners.

There are two models: Model 1 (institutions report to their local tax authority, which shares with the IRS) and Model 2 (institutions report directly to the IRS). Some countries are treated as having an IGA in effect even if not formally signed.

Why this matters

• →US citizens or green card holders: bank accounts in FATCA partner countries are reported to the IRS, including balances and transactions.
• →Non-FATCA jurisdictions do not automatically share financial data with the US — but US persons still have a legal obligation to self-report (FBAR, Form 8938).
• →Many banks in FATCA partner countries refuse to open accounts for US persons due to compliance costs, affecting crypto on/off-ramp access.
• →For non-US persons, FATCA has minimal direct impact but signals a country’s willingness to cooperate on financial transparency.

The Financial Action Task Force (FATF) is an intergovernmental body setting international AML/CFT standards. It maintains two lists of jurisdictions with strategic deficiencies, updated at each plenary (February and October).

Why this matters

• →Blacklisted countries face near-total banking isolation — most banks refuse to process transactions altogether.
• →Greylist status increases compliance costs: slower wire transfers, additional documentation, potential account freezes, and higher fees.
• →Crypto exchanges may restrict or block users from blacklisted countries entirely. Greylisted countries may face reduced access or higher KYC.
• →FATF status is dynamic — countries are added or removed at each plenary. The February 2026 plenary outcomes are pending.

The EU list of non-cooperative jurisdictions for tax purposes is maintained by the European Council and updated twice a year. Countries on Annex I (the blacklist) have failed to engage sufficiently with the EU on tax governance.

As of October 2025, 11 jurisdictions are blacklisted: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad & Tobago, US Virgin Islands, and Vanuatu. The February 2026 revision is pending.

Why this matters

• →EU member states apply defensive measures: higher withholding taxes on dividends, interest, and royalties flowing to blacklisted jurisdictions.
• →Deductions for payments to entities in blacklisted jurisdictions may be denied, and stricter CFC rules apply.
• →Enhanced reporting under DAC6 is triggered for transactions involving blacklisted countries.
• →EU tax residents with structures or accounts in blacklisted jurisdictions face heightened scrutiny.

The OECD Crypto-Asset Reporting Framework (CARF) launched on January 1, 2026 across 48 participating jurisdictions. It establishes the first global standard for automatic exchange of cryptocurrency tax information between countries.

Under CARF, crypto-asset service providers must identify customers' tax residencies and report detailed financial data annually — including gross proceeds from sales, exchanges, and year-end holdings. The first cross-border exchange of information is scheduled for 2027.

In the EU, CARF is implemented via DAC8, adopted in October 2023 and applicable from January 1, 2026. The EU's MiCA regulation (fully applicable since December 30, 2024) adds licensing requirements for all crypto-asset service providers, with transitional grandfathering extending until July 1, 2026 at the latest.

Key implications

• →Crypto transactions on centralized exchanges will be reported across borders starting 2027 — reducing the effectiveness of simple relocation strategies.
• →The US is not a direct CARF participant but operates its own regime via FATCA and the new Form 1099-DA.
• →Jurisdictions not yet committed to CARF (including Argentina, El Salvador, Georgia, India) may face increased pressure.
• →CARF initially focuses on centralized intermediaries. DeFi and self-custody are not yet covered but may be in future iterations.

The privacy score (1–10) measures how much financial information a country discloses to foreign governments. A higher score indicates greater financial privacy.

Factors assessed

• →CRS/AEOI participation level and scope of automatic information exchange
• →FATCA compliance model and reporting extent
• →Banking secrecy laws and their practical enforcement
• →Domestic financial surveillance frameworks
• →Number and scope of bilateral tax information exchange agreements
• →CARF commitment status and implementation timeline

Each country receives six lifestyle scores (1–10) to help people considering relocation evaluate quality of life beyond taxes. Scores are derived from published indices and cross-referenced with direct experience where available.

For each country, we include whether dual nationality is permitted, a summary of the main path to citizenship or residency for foreigners, and whether a Bitizenship pathway is available.

Bitizenship structures investments for citizenship-by-investment and residency-by-investment programs so your capital retains indirect exposure to Bitcoin — instead of sitting idle in government bonds or real estate. This means your investment continues tracking BTC performance while satisfying the legal requirements of the program.

Tax laws change frequently. Crypto regulations are evolving rapidly in every jurisdiction. This dataset is continuously reviewed and updated as new legislation, rulings, and FATF/EU plenary outcomes are published.

Major review cycles align with FATF plenaries (February and October), EU Council updates (February and October), and the annual publication cycle of Big Four crypto tax guides.