We often talk about moving to crypto tax-friendly countries, but it turns out you need to be rich to live on these. I've analyzed some indexes of the Top 5 countries people generally think of when the subject is brought in. These indexes were:
Mortgage interest rate (source)
The mortgage credit interest rate is the average interest rate on mortgage loan products offered to individuals and households by the commercial banks in the country.
Source for Singapore's data: https://www.valuechampion.sg/average-cost-home-mortgage-loans
Quality of life index (source)
The rankings measure global perceptions of 165 nations chosen because they contribute most to the worldβs GDP. More than 258,000 people around the world are asked to evaluate the countries based on 10 metrics ranging from stability to transparency to equality.
Crime rates (source)
Overall crime rate is calculated by dividing the total number of reported crimes of any kind by the total population, then multiplying the result by 100,000.
Human development index (source)
The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and having a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three dimensions.
Property cost per square meter (source)
Results follow below:
Country | Tax | Mortgage | Price sqm | Q. of Life | HDI | Crime |
---|---|---|---|---|---|---|
El Salvador | 0% | 7.44% | $1.2k | 68.99 | 0.68 | 67.79 |
Germany | 1yr holding, 0% | 4.06% | $6k | 91.26 | 0.94 | 35.79 |
Malta | 0% | 2.72% | $3.3k | 83.04 | 0.92 | 40.39 |
Portugal | 1yr holding, 0% | 3.99% | $3k | 86.38 | 0.87 | 29.91 |
Singapore | 0% | 2.00% | $17k | 87.64 | 0.94 | 27.96 |
Switzerland | 0% | 3.02% | $10k | 94.40 | 0.96 | 21.62 |
Insights from the data:
Germany has a higher crime index than Portugal and Singapore, and not very far from Malta's, which somehow I thought would not be the case;
With the cheapest property price at $1.2k/sqm, a 100 sqm place would require $120k, which is not trivial. You need to already be rich to have this amount, or be lucky with crypto if you're were not rich in the first place;
Switzerland is the best country in terms of life indexes, but Singapore has the most expensive housing.
TL;DR
If I had to chose, I'd probably move to Portugal. To me, it has the best cost-benefits. Moral of the story is that we have to look at other indexes as well to move to a certain country, not only considering crypto.
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