Citizenship by Investment for Crypto Wealth

How Crypto Wealth Can Be Used in CBI

Many investors use investing in crypto as a way of receiving citizenship or residency in another country. Countries like Antigua and Barbuda, St. Kitts and Nevis, or Vanuatu already accept crypto payments for their citizenship by investment programs. Of course, the applicants can make their payments with cryptocurrencies like Bitcoin; however, there are some regulatory points that need to be followed. For example, the transactions must be aligned with anti-money laundering (AML) and know-your-customer (KYC) regulations. In most cases, investors may even be asked to convert the payment to fiat currency.

The process of acquiring citizenship with crypto wealth is more or less similar to the one where applicants receive citizenship by paying with regular money. Governments usually don’t directly accept crypto as an investment. The digital assets need to be converted to conventional currency. 

While most countries don’t directly accept crypto for citizenship, Antigua and Barbuda accept it in an indirect way. This means that as an investor, you can use Bitcoin (via an approved middleman who converts it) to qualify for their investment-based citizenship program.

Why Crypto Investors Seek Citizenship by Investment (CBI)

Crypto investors who want to acquire citizenship by investing in crypto see the whole experience as a plan B that comes with many advantages. The key advantages are:

Financial Freedom and Asset Diversification

Receiving a second citizenship by investing in crypto wealth means:

• Having access to foreign investment opportunities and crypto-friendly banking systems.
• Diversifying assets geographically, protecting against local inflation, taxation, or banking restrictions.
• Not relying only on a single country’s financial system.

Higher Privacy

Crypto transactions can be used discreetly (via licensed agents), preserving financial privacy.

Higher Global Mobility

With a second citizenship, investors usually get a visa-free or visa-on-arrival travel to 100-180 countries.

Better Regulatory Environment

You can gain your second citizenship in a country that has favorable policies for digital assets, including zero capital gains tax on crypto.

Tax Optimization

Many CBI programs, like St. Kitts and Nevis, don’t tax foreign income or crypto capital gains. This is a very favorable condition, especially for investors.

Family Inclusion

Many CBI programs allow the main applicant to include his/her family members in the application. This way, programs ensure generational asset protection and mobility for your family.

Best Programs for Crypto Wealth

As we’ve already mentioned before, crypto is getting more and more awareness and interest among investors. That’s why some countries have already accepted crypto as an indirect payment method for the citizenship by investment programs. Now let’s have a look at the best crypto-friendly countries in the world.

Antigua and Barbuda

Antigua and Barbuda is one of the countries that accepts cryptocurrencies like Bitcoin as a payment method for the citizenship by investment program.  As an applicant, you can either invest $230,000 in the NDF (National Development Fund) or buy a real estate that costs at least $300,000. The property needs to be listed in the government-approved projects and be held for at least 5 years. 

Here is the list of documents that need to be submitted:

• Completed government application forms.
• Valid passports and ID documents.
• Birth and marriage certificates.
• Police clearance certificates for applicants aged 16 or older.
• Proof of investment or donation.
• Bank reference letters and financial statements.
• Medical certificate, including HIV test results.
• Evidence of residential address.
• Passport-size photos.

Vanuatu

Vanuatu also accepts CBI program payments in crypto. As a single investor, you can either invest through the Capital Investment Immigration Plan (CIIP) of at least $170,000 or make at least $130,000 to the Development Support Program (DSP). The country doesn’t directly accept the crypto, but it allows to transfer of those funds. Some of the benefits of Vanuatu are its tax-friendly environment. There is no income, inheritance, or capital gains tax.

Here are the key documents that need to be submitted:

• Valid passport and ID documents.
• Police clearance.
• Proof of funding or donation.

The whole process usually takes up to 2 months.

Switzerland

Switzerland has its own Crypto Valley in Zug. It’s a global hub for blockchain and fintech innovators. It’s true that Switzerland doesn’t have a CBI program, but we preferred just to mention some of the favorable conditions in the country, as it may be helpful for crypto people. Known for its crypto-friendly environment, Switzerland is tax-free for private crypto gains. Professional traders and crypto-related businesses are subject to income tax. The wealth tax is at the lowest rate, around 0.5-0.8%.

Singapore

Singapore has become one of the world’s top financial centers with an open-minded approach toward cryptocurrency and blockchain. Its innovative approach toward regulation and the lack of tax on capital gains make it an attractive location for crypto investors.

The Monetary Authority of Singapore regulates crypto activity through the Payment Services Act, providing clear legal direction for exchanges, issuers of tokens, and wallet providers.

As there is no capital gains tax, crypto traders and investors have tax-free gains from the sales of digital assets. Companies are taxed at 17% corporate income tax, with crypto-derived gains having the potential of being taxed as assessable income.

The Global Investor Program (GIP) provides an opportunity for people to secure permanent residence by investing about $8 million in approved funds or setting up Singapore-based businesses.

Additionally, Singapore has blockchain centers such as Blockchain Association Singapore and hosts many major crypto events.

The required documents are:

• Valid passport(s) of the applicant and dependents.
• Birth and marriage certificates.
• Detailed business plan (for business track) or investment plan.
• Audited financial statements of your business (usually the last 3 years).
• Bank reference letters and personal bank statements.
• Police clearance certificate (for applicants over 16).
• Evidence of the source of funds (e.g., company ownership documents, asset sale records).
• Passport-size photos.
• Medical reports (if requested).
• Proof of residential address.

United Arab Emirates (Dubai and Abu Dhabi)

UAE, specifically Dubai, has become a world leader in the development of blockchain technology and the use of cryptocurrencies. Zero personal income tax and friendly crypto regulation make the UAE an attractive location for investors.

Individuals receive tax exemption from crypto trading, capital gains, and personal income. Corporate tax is insignificant and only imposed in certain instances.
Dubai’s Virtual Assets Regulatory Authority and the Abu Dhabi Global Market have distinct guidelines for digital assets. Free zones such as the DMCC issue licenses for blockchain companies.
Applicants can obtain a 10-year visa by investing AED 2 million in properties or businesses.
Additionally, it’s worth mentioning that free zones like Dubai Internet City provide licenses for blockchain startups.

The required documents are:

• Valid passport(s).
• Recent passport-size photos (UAE format).
• Bank statements (usually last 6 months).
• Proof of investment (property title deed, business license, or share certificate).
• Police clearance certificate from the home country or the UAE.
• Health insurance.
• Emirates ID application (done after entry).
• Medical fitness test results (done in Uthe AE).
• Birth and marriage certificates (attested).

Malta

Malta, also known as the "Blockchain Island," was one of the first countries to frame an extensive regulatory framework for cryptocurrencies and blockchain technology.

Malta does not charge capital gains tax on long-term crypto holdings by individuals. However, trading and mining activities by professionals are taxed at progressive rates (up to 35%).
Blockchain technology is regulated by the Malta Digital Innovation Authority (MDIA), while crypto businesses are regulated by the Virtual Financial Assets Act (VFA).
The Malta Individual Investor Program (MIIP) permits individuals the opportunity of obtaining citizenship by an investment of €750,000 or more, accompanied by real estate and donation obligations.
Issued through investments in real estate or government bonds, resulting in a five-year route toward citizenship.

The required documents here are:

• Valid passports.
• Birth and marriage certificates.
• Police clearance certificates from all countries of residence.
• Proof of source of funds and wealth (bank statements, tax returns, asset documents).
• Proof of investment or donation (receipts, contracts).
• Health insurance covering Malta.
• Medical certificate including HIV and TB tests.
• Lease or property purchase contract in Malta.
• Bank reference letters.
• Passport-size photos.

Portugal

Portugal is a big hub for crypto investors with its tax-friendly policies and thriving crypto community.

Gains from cryptocurrencies kept for over a year are not taxed for individuals. Gains from the crypto kept for less than a year are taxed at 28% by way of a flat tax. Business activities involving the use of crypto are taxed with VAT.
Lisbon has a thriving blockchain startup hub, with active crypto meetups and conferences.
As an investor, you can obtain residency through real estate or fund investments from €280,000 to €500,000, with an option for citizenship after five years.
Specific for remote workers and retirees, the D7 visa allows crypto income to be considered passive income.

The required documents here are:

• Valid passport(s).
• Recent passport-size photos.
• Criminal record certificate (from the country of origin and from Portugal after arrival).
• Proof of qualifying investment (property deed, fund subscription certificate, or business investment papers).
• Portuguese NIF (tax number) and bank account details.
• Bank statements showing fund transfers.
• Proof of health insurance valid in Portugal.
• Birth and marriage certificates (for family applications).
• Proof of residence address (rental agreement or utility bill).
• Signed declaration of compliance with investment requirements.

Tax Implications for Crypto Citizens

Bitcoin, Ethereum, and other cryptocurrencies have made big changes in today’s world. They have kind of formulated the way people think about storing and using money. People who often use crypto (aka crypto people) must pay taxes. It’s good if you analyze and understand the crypto market and tax implications before going deeper into it not to face surprises.

There are countries that position crypto as a regular money. With this being said, we mean that whenever you sell, trade, or spend crypto, you need to pay taxes. For example, if you buy a Bitcoin for $5,000, and later sell it for $8,000, you made a profit (in other words, a capital gain) of $3,000. This gain is often considered taxable, and you’ll need to report it to your tax authority.

On the other hand, if you lose money, like if you buy a Bitcoin for $5,000 and sell it for $3,000, you lose money (in other words, a capital loss).

And it’s not only about selling. If you trade one crypto with another, like if you use Bitcoin with Ethereum, most tax systems still treat this as a sale. You’ll also need to figure out the value at the time and pay taxes on any gains. 

Using crypto to buy goods or services can also trigger taxes. For example, if you buy a laptop in exchange for Bitcoin, you’ll need to report this profit as well.

Additionally, earning crypto will be taxed differently, too. If you mine crypto or get paid with crypto, it’s usually considered income. Later, if you sell that crypto, you may pay additional capital gains tax if its value has increased. Here are some key questions that will be insightful for your reports:

• When did you buy or receive the crypto?
• How much was it worth at that time?
• When did you sell or use it?
• How much was it worth then?

These records will help you more precisely calculate your taxes that you’ll need to pay.

There are even people who hire accountants just to help them out with the taxes.

Risks and Considerations

Using cryptocurrency as a payment/funding method for citizenship by investment programs is surely beneficial. However, it doesn’t come without some risks. Here are the key considerations that you need to pay attention to:

Source of Funds

Many governments require you to prove where your money comes from. As crypto transactions are harder to record (like if you mined coins years ago or traded on exchanges that no longer exist), it may cause some inconveniences. Additionally, if you don’t provide clear records, your application may be rejected.

Volatility

The crypto market isn’t very stable. People who are rich today may lose much of their crypto wealth tomorrow. The risk of it is that the sudden drop may leave your crypto’s value below the investment threshold.

Acceptance Issues

Some countries don’t accept digital money, so you’ll need to pay with regular money.

Extra Scrutiny

Applicants who pay with crypto often face tighter due diligence checks. This is done to prevent money laundering or tax evasion.

Tips for Choosing the Right Program

Choosing the best citizenship by investment program is a big step. You need to go through all the opportunities and find the one that suits you the most. Here are some tips for choosing the right program:

Check Crypto-Friendliness

Make sure that the country you want to have citizenship in has a crypto-friendly environment and accepts digital money as a payment method.

Look at The Tax Regulatory System

Try to understand how your new citizenship or residency will affect your taxes. There are some countries that don’t tax worldwide income, while others do. Try to talk to tax experts.

Talk to an Agent

There is no need to take the whole burden when professional agents can do that instead of you. By contacting Mirabello Consultancy, our agents will make a clear and personalized path for you to find the best and most suitable program specifically for you.

Research Processing Times 

It’s very important to understand how much time it’ll take you to get the citizenship/residency you’re applying for.

Check Travel Benefits

While choosing the best CBI program for you, don’t forget to consider global mobility. Try to pick a country that has more visa-free or visa-on-arrival countries in its list.

Read Reviews and Case Studies

To understand the situation even better, it’s suggested to look at other investors’ experiences to see common problems or advantages with each program.

‍