Malta - Remittance Basis of Taxation as a Trader vs. Corporate Structure

[Topdev]

Must be the reason why I︉ am over hearing many crypto related conversation lately while at the beach. I know its︊ not polite but the words "bitcoin" and "bull run" get my attention.

As a resident︋ I have never paid any taxes on crypto so far because enforcement is lax, but︌ I was told by a reliable source that the tax authorities will start asking for︍ transaction from crypto exchanges from next year.

to be honest its not clear even to︎ me the tax rate here if you art trading in person. According to the KPMG️ website its regarded as capital gains tax and taxed at 35% which is very high.‌ non residents have slightly different rules.

 

[carz]

This is interesting, did s/he specify how they would do this?

(I guess crs is⁤ going to include crypto, so all tax authorities would get such information).

 

[Rzeznik]

That is true for Malta but to be fair not only for Malta.
If we look‍ on other crypto "tax free" EU countries:
In Slovenia you can not trade more like⁠ 100days a year.
Even in Portugal if you are trading you can get into troubles⁤ if trading is your "profession/business" most income goes from it.
Germany no tax after 1⁣ year of holding or 10 years if crypro was used to stacking.
In Malta they⁢ wrote that they won't tax if your crypto holding were long term investments not considered︀ as trading.
If you want do actively trading in Malta to be clear you should︁ have some company CFC rules are very relaxed in Malta comparing to others.
(I will︂ have to examine those but since they have non-dom rules getting any company for trading︃ will rules)

In every country I see different practice vs law.
In reality my friend︄ who got Malta residency in 2018 he even not payed them those 5k Euro while︅ he had more $$$ than 35k.
Reality is that Malta have like 400k people, tax︆ office is not that big if they see "ordinary resident" paid 5k tax over 35k︇ income outside Malta there is like 0.01% chance that they will audit you for me.︈
Of course don't demand officials to write you that in plain text, because they have︉ to protect tax treaties and their taxes.
I was using law firm and as far︊ if someone paid 5k Euro then never got audited so far... that is the reality.︋
If you want to be 100% complaint with law you have to setup some company︌ to trading but that one can be even in tax heaven if you are in︍ Malta.

PS: Tax heaven is not good for stock/bonds because of withholding tax and no︎ tax treaties.