European low-tax cryptocurrency centres with residency or citizenship programs
Published at: 09/07/2020 12:00 pm
Crypto business is growing fast, and the investors of the different e-money types are looking for the most effective low-tax residency solutions as well.
The international taxation of cryptocurrency trade is not as straightforward as it looks likes. Even most of the EU Member States are still not prepared for the blockchain revolution. Moreover, there are only a handful of jurisdictions, where the legislators forged not only transparent but also affordable tax solutions. In Europe, Switzerland, Malta and Portugal are the leading crypto-centres with low or no-tax solutions. These Schengen countries all offer law-tax solutions for the crypto business, and these countries also have well-known residency by investment programmes. Crypto traders and blockchain-based start-ups are welcome in Europe.
Switzerland
The not EU Member State Switzerland is one of the friendliest jurisdictions for the crypto and blockchain industries. Any e-money held, sold or bought by people as their private wealth is tax-exempt. On the other hand, Bitcoin mining is considered as working activity and employment, which is taxable of course. Switzerland's lum-sump or flat tax residency by investment programme is the most traditional solution for High Net Worth Individuals in Europe. Our colleagues have more than twenty years of experience with obtaining the residence permit of Switzerland through business registration or tax agreement.
Malta
Malta's nickname became the "Blockchain Island" after the government recognised the benefits of modern financial technologies and started to invest in attracting the crypto traders and start-ups. The taxes on crypto business are similar to the legislation of the long-held bonds in Malta; because long-held cryptocurrencies are not taxed. However, if you make cryptocurrency trades within a day, it's considered comparable to day trading in currency pairs or stocks, then you must pay the taxes on business income. Malta launched various residency programs and solutions; investors are always welcome on the Mediterranean island nation. Discus Holdings Ltd's headquarters is in Malta, and we are official agents of the citizenship (IIP) and the residency programmes.
Portugal
Portugal was one of the first countries to regulate the cryptocurrencies in 2018, and these are exempt from VAT and personal income tax. Businesses must pay their burden on profits from cryptocurrencies. However, companies that opt to receive payment for either goods or services via cryptocurrencies must pay VAT and income tax. It is not a coincidence that Portugal attracts cryptocurrency traders. Meanwhile, the Golden Visa Program offers several tailormade immigration options for the cryptocurrency and blockchain start-ups.