If you are as big a crypto enthusiast as I am, you likely wonder what might be the most crypto friendly countries in Europe. Europe is not just a continent bursting with diverse economies and breathtaking landscapes. It’s also home to Switzerland, Portugal, Luxembourg, Estonia, and Germany; countries that are big on crypto.
So if you’re looking to make a trip to Europe anytime soon, let me tell you that you might even be able to pay for flights and accommodations in Europe with crypto.
Before we dive right in, let’s first understand what makes a country crypto-friendly.
What Makes a Country Crypto-Friendly?
While it may seem like a complicated task, it’s actually easy to tell crypto-friendly countries apart from those that are not. Think regulation. Think taxation. If a country is lenient with regulation, and the tax incentives are low, it’s a pretty good sign.
Additionally, in crypto-friendly countries you will also notice there wont be capital gains on crypto transactions, and exemptions for long-term holdings.
Crypto-friendly nations will support businesses accepting digital currencies and will integrate crypto into the daily life of her population.
An additional safeguard when it comes to crypto regulation in Europe is the Markets in Crypto-Assets Regulation, which is currently in effect. MiCA aims to make the crypto world safer and more trustworthy within the European Union.
What are the Crypto-Friendly Countries in Europe?
Now that you are able to identify a crypto-friendly country when you see one, let’s explore my top picks for Europe.
Switzerland
Switzerland, particularly Zug, bears a reputation as the “Crypto Valley” of Europe for being a blockchain hub.
The Swiss government’s clear regulations classify cryptocurrencies as assets. While they are subject to 12-24% wealth taxes, these taxes come with straightforward guidelines.
Meanwhile in cities like Lugano, Switzerland, you can simply process your McDonald’s order by paying with Bitcoin, Tether or the city’s own stablecoin LVGA.
This is a testament to the lengths the country goes to increase crypto adoption in the city.
Switzerland is also home to crypto-friendly banks like SEBA and Sygnum. The crypto integration is so widespread that there is all the possibility of paying for hotels via crypto.
The fintech sandbox of Swiss Financial Market Supervisory Authority (FINMA), lets startups experiment with blockchain under light regulation and clear licensing. In fact, Zug is the birthplace of Ethereum and Cardano.
If you are particularly looking to launch a blockchain based business in Europe, Switzerland is unmatched.
Estonia
Estonia, is a haven for digital nomads, popular for its e-Residency program which lets you set up a crypto business remotely, within weeks.
Estonia’s crypto friendly policies stem from its digital governance. It was one of the first countries to introduce e-voting and digital IDs.
The country’s simple tax system and low crypto compliance costs are appreciated by investors and crypto enthusiasts alike. Estonia’s 20% flat corporate tax, applied only on distributed profits, is a lifeline for startups.
Further, the Estonian Financial Intelligence (FIU) Unit’s clear licensing supports crypto exchanges and wallet providers.
The seamless digital infrastructure in Estonia is ideal for tech-savvy crypto entrepreneurs.
Luxembourg
Luxembourg, a small nation with a colossal financial sector, is among top crypto-friendly countries in Europe, with a clear legal framework for digital assets.
The Luxembourg government recognizes cryptocurrencies as legitimate investments, and the Commission de Surveillance du Secteur Financier (CSSF) oversees crypto funds with investor protection in mind.
The country’s laws support tokenized securities, making it a hub for crypto investment funds. Renowned platforms like Gemini and Coinbase have already obtained approval to operate in Luxembourg and Malta.
Like other EU countries, Luxembourg exempts crypto-to-fiat transactions from VAT under EU law, and its low corporate tax rates attract crypto businesses.
While crypto payments for services are emerging in Luxembourg, adoption is limited compared to traditional financial services, with platforms like BitPay facilitating use.
That said, for investors blending crypto with traditional finance, it is definitely the place to be.
Germany
Germany to date, remains one of Europe’s economic powerhouses.
Germany’s Federal Financial Supervisory Authority (BaFin) regulates crypto as financial instruments, offering clarity that attracts institutional investors.
Tax rules comparatively are stricter in Germany. However, the gains become tax-free after a one-year hold.
Germany’s bank Solaris lets users trade Bitcoin directly from their accounts. German banking giant Sparkassen meanwhile is set to launch Crypto Trading for 50 Million customers by 2026.
Berlin is also a vibrant crypto hub for startups. Germany’s blend of regulation and innovation makes it ideal for scaling crypto businesses.
The country has also integrated crypto into daily life. For instance, you can conveniently book a flight from Berlin using Bitcoin thanks to crypto-friendly services.
Portugal
Portugal is a crypto investor’s dream, with cities like Porto and Lisbon being magnets for digital nomads.
In Portugal, blockchain developers build decentralized apps (dApps) with minimal red tape.
The Non-Habitual Resident (NHR) program, though recently tweaked, still offers tax perks for newcomers, making Portugal a hotspot for crypto entrepreneurs. The NHR program, discontinued for new applicants in 2024, still offers tax perks for existing beneficiaries.
For those looking to make the next move in crypto, here’s something interesting. Portugal taxes short-term crypto gains (less than one year) at 28%, but long-term holdings remain tax-free.
Crypto is so seamlessly woven into Portugal’s very fabric that you could even pay for a rental car using Bitcoin!
Malta
Last but not least Malta is another crypto-friendly country that has been revolutionary in the blockchain space.
Malta introduced the Virtual Financial Assets (VFA) Act in 2018, providing a clear legal structure for cryptocurrencies and blockchain businesses.
The Maltese government actively promotes blockchain technology, aiming to make Malta a “Blockchain Island.” Initiatives like the Malta Digital Innovation Authority (MDIA) encourage crypto and blockchain adoption through supportive policies and incentives.
Malta also actively issues licensing for crypto exchanges and wallet providers, ensuring compliance while fostering innovation.
In other words, you should certainly consider Malta as an option if you are looking to either move or invest in crypto in 2015.
Final Thoughts on Crypto-Friendly Countries in Europe
When it comes to Europe, each crypto-friendly country has something different to offer. While Switzerland provides stability, Portugal provides tax freedom, Luxembourg financial synergy, Estonia digital ease, Germany economic strength and Malta provides lack of red tape around crypto.
Each nation integrates crypto into daily life, from paying for flights with Bitcoin to building Dapps. Whether you’re a trader, developer, or investor, these countries welcome your crypto ambitions.
