Best Residence Options for Crypto Investors in 2025

Crypto has created wealth at a pace few people predicted, and few asset classes can match it, but protecting that wealth is a different challenge entirely.

In 2025, the cryptocurrency market is more mature, the technology more refined and its adoption by financial institutions is part of the landscape.

But one constant remains for crypto investors: volatility. One month might see double-digit gains; the next regulatory changes or price swings could erase years of growth or even trigger a major tax event.

Governments are starting to scramble to keep up, but the tax treatment of digital assets can vary wildly. In some countries, every trade is taxed, while in others, merely holding crypto can trigger reporting obligations.

It’s all a bit reminiscent of the lawless gold rushes the US Wild West experienced in the late 1800s.

That’s why more crypto investors are taking a strategic approach to residency. They’re opting to move not just their assets but their entire lives to jurisdictions that offer long-term security, friendly tax regimes and a legal infrastructure that supports digital wealth.

In that context, residency becomes more than just a lifestyle choice. It’s a financial tool that can reduce risk, protect and preserve capital and future-proof financial portfolios against instability.

But choosing the right jurisdiction requires more than just chasing zero tax headlines. Legal pathways, exit taxes, holding periods and lifestyle realities all play a role in determining the best fit.

For some, a European base with a strong banking infrastructure and a great lifestyle might be an ideal place to be located. For others, it’s a low-tax island with territorial taxations and crypto-friendly policy hard-wired into the law.

Whatever you decide to do, getting the right advice from the start can save you lots of time, effort and money. Rather than relying on local providers, it pays to have impartial advice from international experts with no specific allegiance to any one jurisdiction.

That’s just one of the reasons people choose Nomad Capitalist – we have direct experience across multiple jurisdictions and will help you weigh up the pros and cons of each. 

So, remove all the guesswork, skip past the gatekeepers and speed up the entire process by reaching out and letting us help you go where you’re treated best’.

Pros and Cons of Crypto-Friendly Residencies

Choosing a residency that favours cryptocurrency isn’t a simple choice. It comes with some advantages and disadvantages that need to be carefully considered. 

Advantages

The most obvious advantage, and one that certainly gets the most attention, is the potential for tax-free gains. 

Jurisdictions like the United Arab Emirates, Malta and the Cayman Islands have always had attractive tax laws that don’t tax crypto gains or capital gains after a holding period. 

Beyond tax, crypto-friendly jurisdictions tend to attract a higher concentration of private banks, wealth managers and family offices that are knowledgeable about dealing with digital assets. 

Disadvantages 

The path to crypto-residency utopia isn’t always paved with gold (or Bitcoin, for that matter). 

One significant disadvantage can be the cost of living in some countries and the cost of obtaining residency itself. 

Some of the most appealing jurisdictions are, unsurprisingly, and are also some of the most expensive. 

Additionally, while regulatory clarity is a plus, it can also mean stricter compliance requirements. Be prepared for more rigorous reporting and due diligence than you might be accustomed to. 

Key Factors for Crypto Investors Choosing Residency 

Finding the right residency to complement your crypto portfolio requires a plan. Several key factors must be meticulously reviewed before you plant your flag in a new jurisdiction. 

Tax Treatment of Cryptocurrency: Countries can adopt vastly different approaches. Some, like Malta, have no capital gains tax on crypto held for over a year, while others operate under a territorial taxation system, meaning only income sourced within the country is taxed. Then, there are jurisdictions that are courting crypto with specific exemptions and incentives. Lastly, there are traditional tax haven countries like Bermuda and the Cayman Islands that don’t tax capital gains at all. 

Ease of Obtaining Residency: A favourable tax regime is useless if you can’t actually become a resident. Some countries have straightforward residency by investment programmes based on investment, while others have more complex bureaucratic processes. 

Quality of Life: Even the most dedicated crypto investor needs to surface for air (and perhaps a good meal) occasionally, which is why you should consider factors like healthcare, infrastructure, safety, political stability and cultural compatibility. It needs to be a crypto market where you can genuinely see yourself thriving, not just surviving.

Top Residency Options for Crypto Investors in 2025

United Arab Emirates (UAE) 

The UAE’s crypto-friendly rating is partly based on its Golden Visa. 

With it, you gain long-term residency for 10 years. For the investment side of this route, you typically need to invest AED 2 million (about US$545,000) in either property, a public investment or a business that meets specific criteria. 

And once you are a resident, there’s no personal income tax. 

Your realised gains from trading or investments are also not taxed. 

In terms of quality of life, expect top-tier infrastructure, luxury living, a multicultural environment and soaring desert temperatures. 

Cayman Islands

The Cayman Islands is a traditional tax haven. 

There’s no personal income tax, no crypto capital gains tax, no corporation tax, no inheritance tax and no property tax. 

Your cryptocurrency gains, whether from trading, staking or other activities, are yours to keep. 

It’s a clean, straightforward system for crypto investors. 

In terms of residency, the primary route for high-net-worth individuals is the ‘Residency Certificate for Persons of Independent Means.’ 

This program requires an investment in real estate (typically CI$1 million, approximately US$1.2 million and an annual income of CI$120,000 – roughly US$144,200).

There are other options, such as establishing a company and employing yourself, but they come with more requirements and ongoing costs.

The only permanent residence by investment option with a path to obtain citizenship has a minimum investment of US$2.4 million in developed real estate.

Bermuda

Like other tax havens, Bermuda has no income tax, no capital gains tax and no withholding tax. 

Your crypto assets and profits remain your own. 

Bermuda’s approach to residency is ambitious. Its main pathway is called the Economic Investment Certificate (EIC), which requires a minimum investment of US$2.5 million in either real estate, a Bermuda-based business, government bonds or a donation to a Bermuda-registered charity. 

This grants you residency rights for five years, after which you can apply to become a permanent resident. 

Malta

In Malta, your crypto gains tax can be as low as zero. 

However, things are a bit more complicated than in the ‘zero tax’ havens. 

Malta taxes capital gains on the sale of assets, including crypto transactions, but if you hold your crypto as a long-term investment, it’s generally not considered a taxable event. 

The key here is to hold your investments for more than a year, and you’ll avoid capital gains tax. 

It’s a bit more effort to do, but you still pay zero taxes on your crypto and get to live in a Mediterranean country that gives you some solid perks. 

Malta has two main residency options, each with its own set of requirements. 

The Malta Permanent Residence Programme (MPRP) requires a combination of property investment, a non-refundable government contribution and a donation to a registered NGO. 

It’s one of the faster routes to permanent residency than some other options.

The Global Residence Programme (GRP) is for non-EU nationals. It offers a special tax status with a lower minimum property investment threshold than the MPRP but with an annual minimum tax liability.

​​Panama

Panama blends city life with beach life, all while serving up some compelling financial incentives that rival a traditional tax haven.

The true allure for crypto investors, however, lies in Panama’s territorial tax system.

In practice, this means that if your cryptocurrency trading or investment activities are structured so the gains are generated outside Panama, they will likely not be subject to Panamanian tax. 

For those seeking residency, the two most relevant programmes for high-net-worth crypto investors are the Reforestation Residence Programme and the Residence Permit for Qualified Investors (also known as the ‘Red Carpet Visa’). 

The Reforestation Residence route requires a US$350,000 investment in a government-approved reforestation project, covering a minimum of five hectares of land. 

A more direct route, however, is the Red Carpet Visa. This programme grants instant permanent residency and the right to a Panamanian ID card in exchange for a minimum real estate investment of US$300,000, among other options. 

A significant advantage of the Red Carpet Visa is that physical presence in Panama is not required during the application process. Your lawyer can handle everything with a special power of attorney.

Puerto Rico

Puerto Rico is a US territory that has its own tax code, separate from the US federal system, with measures that favour investors.

The star of the show, for many crypto investors, is the Individual Investors Act (the old Act 22). 

The premise is appealing: if you become a bona fide resident of Puerto Rico, any capital gains you earn after establishing residency are exempt from both Puerto Rican and US federal income tax. 

Yes, you read that correctly. 

Then, there’s the Export Services Act (formerly Act 20), which is more relevant if you’re running a crypto-related business. 

If your company provides services from Puerto Rico to clients outside the island, you could qualify for a dramatically reduced corporate tax rate of just 4%, and dividends from that business could be completely tax-free.

The key to unlocking Puerto Rico’s tax benefits is about becoming a bona fide resident. This requires more than just buying a property and spending a few weeks a year on the island. 

You’ll need to demonstrate a genuine connection to Puerto Rico. 

Best Residence Options for Crypto Investors in 2025: FAQs

Get the Right Residency For You

The nuances of tax laws, regulatory frameworks and geopolitical insecurity can all impact your crypto investments and overall wealth. 

A single misstep can lead to unnecessary tax burdens, legal complications and missed opportunities for growth.

The ugly truth is that most people are flying blind when it comes to international residency and crypto. 

They rely on vague internet advice, which leads them nowhere and leaves them feeling more stressed about the endeavour. 

At Nomad Capitalist, we understand these challenges. We don’t deal in speculation. We provide hard, actionable strategies geared to your specific situation. To plan your new tax-friendly residency, get in touch today.