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  • Writer's pictureMandy

Turkey Embraces Crypto With A Capital Gains Exemption

Updated: Jun 22


Bitcoin

Turkey has made a groundbreaking move by exempting crypto and stock profits from capital gains tax. This decision aims to amplify investment in Turkey’s burgeoning digital currency market, which has already seen significant growth and activity.


Currently, Turkey ranks among the top countries globally in cryptocurrency ownership and trading volume. Over 20% of Turkish citizens report owning or using cryptocurrencies, reflecting a robust interest and adoption within the population. The country's crypto exchanges have also flourished, with platforms like Paribu and BtcTurk leading the market in terms of trading volume.


A small transactional tax on cryptocurrency trades is still being considered to balance revenue needs while maintaining an investor-friendly environment. This measured approach aims to sustain market growth and attractiveness for both domestic and international investors.


For foreigners seeking residency, Turkey offers appealing options such as:


Turquoise Card: This visa provides indefinite work and residence rights to skilled individuals, investors, and their families.


Investment Residency: Purchasing property valued at least $400,000 in Turkey qualifies investors for a residence permit.


Start-Up Visa: Entrepreneurs launching a business in Turkey can obtain a residence permit, facilitating business ventures and integration into the Turkish market.


Before you get too excited, however, Turkey faces challenges that may concern anarchists and libertarians. The country has been criticized for censorship and crackdowns on media freedoms, and there are concerns about political instability and authoritarian tendencies under President Erdogan's leadership. These issues contrast with Turkey's vocal support of Palestine and their embrace of cryptocurrency, which symbolizes economic freedom and innovation.


Despite these considerations, Turkey offers a compelling lifestyle with a rich cultural heritage, stunning landscapes, and a favorable climate. English is widely spoken in major cities and tourist areas, facilitating communication for expatriates and visitors. The cost of living is relatively low compared to many Western countries, making it an attractive destination for expatriates and retirees seeking quality living at a lower cost.


Moreover, Turkey's strategic location provides easy access to Europe, Asia, and the Middle East, making it a hub for international travel and business opportunities. The country boasts modern infrastructure, excellent healthcare facilities, and a thriving expat community, ensuring a comfortable and well-connected lifestyle for residents.


For those concerned about the political environment, holding cryptocurrency through an offshore LLC based in Turkey could potentially offer a solution. This approach may provide added financial privacy and regulatory advantages, although it requires careful consideration and legal guidance.


Either way, Turkey is positioning itself as a prime destination for those looking to capitalize on these new tax benefits.  What do you say, is Turkey a yes or a no for you?

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