Today, a large number of crypto enthusiasts live in Europe. The crypto industry has become an excellent way for many to earn additional income and change their lives financially forever. You need to get a Europe crypto license to start your own company. In addition, you must be prepared for the fact that you must pay taxes regularly. Today we want to discuss the peculiarities of taxation in different countries, which will allow you to choose the proper jurisdiction.
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Features of taxation in different countries
Each jurisdiction sets different taxation rules for the crypto industry. If you want to open a company here, you need to study the specifics of cryptocurrency regulation for each jurisdiction and understand which one offers the most favorable taxation conditions. Today we will discuss several countries that are part of the EU, the UK, and Switzerland.
This jurisdiction began to regulate crypto assets relatively recently but has already achieved excellent results. It is suitable for both large corporations and small startups, as small businesses have favorable tax incentives. If you open an organization here, you will have to pay several taxes at once:
- CIT – 19% for large companies and 9% for organizations with fewer than 10 employees and an annual turnover of up to 2 million euros;
- VAT – 23%;
- PIT – from 17% to 32% depending on the form of taxation;
- Tax on dividends – 19% for residents of this country and foreigners, this percentage depends on your country.
As you can see, it is challenging to understand the peculiarities of taxation here, so you should hire local accountants to help keep all financial statements in order. However, this jurisdiction will be desirable for you if you have a small startup with fewer than 10 people.
This jurisdiction has more straightforward taxation rules than Poland. So, you need to pay only 15% of the profit. But for small organizations and startups, there are also tax incentives. They must spend between 0 and 5% of corporate tax.
If you are engaged in the exchange of crypto assets, there is no need to pay VAT, but it is charged if you pay for goods and services using crypto assets. In the second case, the general rules of taxation apply.
There is also a tax on dividends, which is approximately 15%.
As you can see, the level of taxes in this country is not very high, and this jurisdiction is suitable for small startups. However, it is worth saying that this year the requirements for the minimum authorized capital have been increased, which now stands at 125 thousand euros (previously it was only 2500 euros).
In the UK, you are required to pay taxes, provided that your organization is engaged in the following activities:
- Purchase and sale of exchange tokens;
- Exchange of tokens for other assets;
- Sale of goods and services for crypto assets.
There are also separate taxation rules for individuals who want to engage in the above activities.
The size of corporate tax here is one of the smallest in Europe. It is approximately 13% but may vary depending on the characteristics of your company.
Gibraltar is part of the UK. You can also get a work permit in this jurisdiction because there are more relaxed tax rules, and the corporate tax percentage is minimal.
Among all countries, Estonia has the most straightforward taxation rules. There is no corporate tax here, but all organizations must pay a general tariff of 20% on profits. Other payments are not provided here. This jurisdiction is suitable for those who do not want to understand the peculiarities of taxation for a long time, as is the case in Poland.
Estonia sets quite strict requirements for crypto organizations that want to get a work permit here. This concerns compliance with the rules for the prevention of money laundering, the presence of a local office and employees, a sufficiently sizable authorized capital, and much more. If you decide to get a license here, you should get advice from specialized lawyers in advance.
In this country, there need to be well-thought-out taxation rules for crypto companies. Therefore they are subject to the same tax as other companies. However, there are exciting rules for individuals here. So, if your income from crypto operations does not exceed 30 thousand crowns per year, you are exempt from paying taxes. But, if you perform crypto transactions regularly and the profit exceeds the agreed amount, you need to pay a surcharge of 15%.
There is also a mining tax. The tax is 15% for individuals and 19% for legal entities.
As for VAT, there are no clear rules. Although the European Court has exempted transactions with crypto assets and mining from VAT, the tax office can credit this if it considers it necessary.
Many people think Malta is an offshore country where crypto organizations are exempt from taxation, but this is not the case. Moreover, the corporate tax here is much higher than in other European countries – up to 35%. At the same time, the shareholder has the right to demand a tax refund of 6/7 of the amount if they have the presidency.
This jurisdiction treats cryptocurrencies like cash, which is taxable and must be listed on the securities record. There is no exact tax rate here. The tax authorities calculate the average prices of such currencies at the end of the year.
This country establishes very loyal rules for regulating crypto assets, which leads to a considerable number of crypto organizations being registered here.
What should you pay attention to when choosing a jurisdiction?
If you want to choose a jurisdiction for obtaining a license, taxation is a crucial factor. However, other aspects need to be taken into account, for example:
- Minimum authorized capital;
- Requirements for organizations;
- Quality of reporting;
- The number of crypto enthusiasts who live in this territory, and much more.
If it is difficult for you to decide on your jurisdiction, it makes sense to seek help from specialists. They will analyze your company’s activities and offer you a choice of countries where it will be easiest for you to work. Based on the data received, you can choose the most appropriate jurisdiction.
Services of our company
It is challenging to obtain a crypto license on your own, so you will likely need the help of professionals. The specialists of our company have extensive experience in this area, and they know the peculiarities of regulation and taxation of crypto assets in different countries, so they can conduct a full consultation and answer your questions.
Other services include:
- Checking your organization’s readiness for licensing;
- Assistance in paperwork;
- Opening a bank account;
- Search for local offices and employees and much more.
It would be best if you issued a power of attorney for our specialists; then, they will be able to represent your interests in state bodies. It will keep your participation in licensing to a minimum. You do not need to come to the country of your choice, and all paperwork can be processed remotely.
In the end
If you want to open a crypto company, you should know in advance about the features of taxation. It will allow you to choose the jurisdiction where the level of taxes is minimal, which means that you will be able to direct all the money to develop your business. High-quality promotion of sites in the cryptoindustry team and apply to them for help you can on this site