Cryptocurrency and Investments – Malta

Buy crypto and hold as personal investment? Gains are tax-free when you sell. No minimum holding period. Applies to Bitcoin, Ethereum, and all cryptocurrencies. Must be genuine investment, not trading.

If you're non-dom and hold crypto on foreign exchanges, gains are completely tax-free even if you cash out and remit to Malta. Capital gains from foreign assets aren't taxed when remitted.

Frequent trading is considered business activity, not investment. Profits taxed as income at progressive rates up to 35%. Must register as self-employed, keep detailed records, pay social security.

Crypto mining rewards and staking income are taxed as business income when received. Must declare, pay income tax at progressive rates. Can deduct mining costs: electricity, equipment, cooling.

Companies trading crypto pay 35% corporate tax on profits. However, shareholders can claim refunds reducing effective rate to 5%. Makes Malta competitive for crypto trading businesses.

Malta has clear licensing framework for crypto businesses: VFA (Virtual Financial Assets) license, exchanges, wallet providers, ICO platforms. MFSA (Malta Financial Services Authority) supervises. Expensive but provides legitimacy.

Malta doesn't charge withholding tax on dividends paid to residents. If you own Malta company shares, receive dividends tax-free. Foreign dividends taxed as income (unless non-dom and not remitted).

Personal capital gains from stocks and shares usually tax-free for individuals. Exception: if you hold 'substantial' shareholding (complex rules). Most retail investors pay zero capital gains tax.

Selling Malta property: 8% final tax on transfer value, or 12% on gain if you can prove lower gain. Main residence held 5+ years can be exempt. Only Malta property is taxed - foreign property gains tax-free if non-dom.