Published at: 30/06/2021 09:15 am
Portugal and Malta are the most crypto-friendly countries in Europe. In Portugal, you don't even have to pay income tax on crypto trading and transactions.
If you invest in cryptocurrencies, taxation of your funds and transactions is a crucial question. Luckily, there are crypto-friendly countries where you can become a tax resident through residency by investment programs.
According to the Portuguese Tax Authority, trading and transacting in cryptocurrency are tax-free activities for individuals. There is no tax on exchanging cryptocurrencies for regular currencies. Moreover, there is no capital gain tax or VAT on the purchase and sale of cryptocurrencies in Portugal.
Discus Holdings Ltd offers the Portuguese Golden Visa program for investors who want to become Portuguese residents through real estate purchases. If you are considering moving to Portugal, it's enough to buy a qualifying flat for € 280,000. Click here for the detailed guide of the Portuguese Golden Visa Program! If you trade crypto, Portugal offers you tax-free life.
Malta was the first European country to embrace blockchain and cryptocurrencies officially. Meanwhile, the launch of its "Distributed Ledger Technology" regulatory framework attracted several crypto traders to the "Mediterranean Blockchain Island".
In Malta, the long-term capital gains are tax-free on crypto investments, and the Value Added Tax (VAT) also does not apply. However, daily crypto trading profits are taxable at the usual 35% business income tax rate.
Discus Holdings Ltd offers participation in the Maltese residency by investment programs under licence no.: AKM-DALL-21. Suppose you wish to settle in Malta to work with your crypto investments. In that case, the best option is the Malta Permanent Residence Programme. The island nation offers two contribution models. You must also purchase or rent residential real estate in Malta or Gozo. Click here for the details!
On the other hand, Vanuatu is the only country where agents can accept bitcoin payments from clients in exchange for the citizenship payments. As Vanuatu does not impose individual or business income taxes, the archipelago is one of the best locations for crypto traders. Our colleagues at Discus Holdings Ltd are experts of the Vanuatu Citizenship by Investment Program. Click here for a consultation if you want to know about the cryptocurrencies related tax, residency and citizenship solutions!