A crypto-friendly country fosters an environment where blockchain technology and cryptocurrencies thrive through clear regulations, financial integration, or tax benefits. Such countries are particularly attractive for businesses and investors, as they provide legal clarity, encourage innovation, and often reduce tax burdens.

In 2025, global crypto adoption continues to rise, with more nations embracing blockchain technology for financial inclusion and economic development. In Europe, the top crypto-friendly countries stand out for regulatory clarity, favorable tax policies, supportive banking systems, and strong institutional backing for crypto projects.

Switzerland: Leading the way in crypto adoption

From a global perspective, and according to Coincub.com [1], Switzerland remains the most crypto-friendly country in 2025. The Swiss Financial Market Supervisory Authority (FINMA) has set transparent guidelines, including rules on the segregation of staked assets to protect investors even in bankruptcy cases.

Switzerland also offers one of the most favorable tax regimes in the world. There is no capital gains tax for individuals holding cryptocurrencies long-term. More than 1,000 blockchain companies operate in Zug—home to the Ethereum Foundation and Cardano—while other cities, such as Lugano, already accept bitcoin and tether for everyday payments.

Germany: Europe’s largest economy embraces crypto

Germany is recognized as one of the world’s most crypto-friendly countries. Its Federal Financial Supervisory Authority (BaFin) oversees regulation, aligned with the EU’s Markets in Crypto-Assets (MiCA) framework.

Like Switzerland, Germany exempts cryptocurrencies held for more than a year from taxation. Short-term trades are also tax-exempt if profits remain under €600 annually. The country is home to six licensed crypto banks, including Nuri and Solarisbank, offering services like trading, custody, and crypto-backed loans.

German law allows special investment funds to allocate up to 20% of their assets to cryptocurrencies. With one in three Germans seeing crypto as part of the financial future, the country also boasts strong adoption and blockchain education programs.

Portugal: A tax haven for crypto investors

Portugal has gained global recognition as a crypto-friendly haven. The country does not impose strict licensing requirements, making it particularly appealing for startups and individual investors.

Profits from cryptocurrencies held for over a year are tax-free for individuals, provided crypto is not their main source of income. Gains from shorter holdings are taxed at a flat rate of 28%. This approach makes Portugal one of the most favorable tax jurisdictions for crypto worldwide.

Although the country does not yet have dedicated crypto banks, local financial institutions are increasingly open to working with crypto businesses.

Estonia: Blockchain at the heart of governance

Estonia has become a hub for blockchain innovation, offering a structured framework for Virtual Asset Service Providers (VASPs). While new businesses face higher capital requirements, the country remains attractive for entrepreneurs.

Estonia applies a flat 20% corporate income tax, with certain treaties providing flexibility for specific entities. Importantly, Estonia integrates blockchain into its e-governance services, proving its commitment to digital innovation. Several universities have also introduced blockchain studies, building a skilled workforce for the sector.

Malta: The Blockchain Island

Malta has positioned itself as a pioneer in establishing a compliant and supportive regulatory environment for crypto. The government has implemented policies to create a transparent and innovation-friendly landscape for businesses.

The country exempts long-term crypto gains from capital gains tax. While the standard corporate tax rate is 35%, it can be significantly reduced under certain schemes. Non-residents may also avoid taxation on foreign-sourced income.

Malta actively promotes blockchain adoption, resulting in a steady rise in crypto ownership across the island.

Sources:

[1] https://coincub.com/top-crypto-friendly-countries/