Living abroad as a digital nomad opens the door to new financial strategies, but it also raises complex questions—especially when crypto is part of the equation. With regulations tightening globally and tax authorities catching up, it’s important to understand how your crypto holdings, trades, and earnings are treated across borders.
Here’s what you need to know about crypto and taxes while living abroad in 2025.
1. Your Home Country Probably Still Cares
Even if you’ve moved abroad, your home country might still require you to report your crypto activity. For example:
- U.S. citizens and green card holders must report global income and assets, including crypto, regardless of where they live. Failing to disclose can lead to hefty penalties.
- Countries like Canada, Australia, and the UK also tax crypto gains and require reporting, even if you’re temporarily abroad.
Before assuming you’re off the hook, double-check your residency status and tax obligations in your country of citizenship.
2. Crypto Is Taxed Differently by Country
While some countries embrace crypto with open arms, others treat it like a capital asset—or worse, as income subject to high taxation. Common classifications include:
- Capital Gains: Most countries tax crypto like property. If you sell, trade, or use crypto to buy something, it may trigger a taxable event.
- Income: If you’re earning crypto through freelancing, staking, mining, or DeFi, it’s often taxed as income.
- Tax-Free Havens: A few countries—like the United Arab Emirates, Portugal (under past regimes), and El Salvador—have tax policies that either don’t tax crypto or only tax locally sourced income.
Make sure to understand how your host country classifies crypto and whether you’ve crossed any local tax thresholds.
3. Double Taxation Is a Real Risk
If you’re subject to tax in both your home and host countries, you might face double taxation. However, many countries have tax treaties to avoid this. These treaties often:
- Determine your tax residency
- Set rules for which country gets to tax certain income
- Provide credits or exemptions for taxes paid abroad
You’ll need to keep clean records and may need to file tax returns in more than one jurisdiction, even if you only owe in one.
4. Reporting Requirements Are Growing
As crypto becomes more mainstream, international cooperation is increasing. Over 50 countries have signed on to the OECD’s Crypto-Asset Reporting Framework (CARF), expected to go live in 2027. This framework:
- Requires exchanges to report crypto transactions to tax authorities
- Promotes automatic information exchange between countries
- Will likely reduce anonymity for international crypto users
This means that soon, even if your crypto is held on an exchange based abroad, that data may end up in your home country’s tax database.
5. Crypto-Focused Nomads Are Watching These Countries
Some countries are becoming crypto nomad hubs due to favorable tax laws:
- Portugal (pre-2024) previously allowed crypto gains to be tax-free for individuals. New laws now apply a 28% tax if assets are sold within 1 year, but long-term holds may still be exempt.
- UAE offers zero capital gains tax and zero personal income tax.
- Singapore does not tax capital gains, including those from crypto, though business activities may be taxed.
- Germany allows tax-free crypto gains if held for more than one year.
These are attractive destinations for crypto investors, but it’s important to stay updated, as laws can change quickly.
6. Track Everything—Seriously
Whether you’re traveling or staying long-term, record-keeping is essential. For crypto taxes, that includes:
- Buy/sell dates and prices
- Wallet addresses and exchange transactions
- Income earned via crypto (e.g., freelancing, affiliate payments, staking rewards)
- Gas fees and transaction costs
Use tools like Koinly, CoinTracking, or Accointing to automate tracking across wallets and exchanges.
7. Watch Out for Exit Taxes
Planning to change your residency permanently? Some countries impose exit taxes based on the unrealized gains of your crypto holdings at the time you leave. For example:
- Canada considers emigration a deemed disposition, which means you may owe tax on unrealized crypto gains.
- The U.S. may impose an exit tax if you renounce citizenship and meet asset thresholds.
It’s important to consult a tax professional before making a permanent move.
Final Advice
Crypto can be a powerful financial tool while living abroad, but it’s not exempt from scrutiny. As a digital nomad, you need to navigate multiple tax systems, shifting residency rules, and fast-changing global crypto regulations. Staying ahead of these challenges means keeping excellent records, understanding your tax residency, and choosing destinations that align with your lifestyle and financial goals.