28/04/2022
Cryptocurrency Taxes in the European Union ๐ช๐บ
๐ถ Operations for exchanging money for bitcoins and back in the European Union are not subject to VAT. The European Court made this decision of Justice in 2015. So far, this is the only document regulating cryptocurrencies in EU countries.
๐ The European Commission has published a draft regulation on the cryptocurrency market. The new law will establish more stringent requirements for cryptocurrency companies: for example, it will introduce licensing of its activities, and a minimum authorised capital of โฌ350,000. The main goal is to make the financial sector transparent at the legislative level.
๐ถ Each state of the European Union independently controls the issues of the use and taxation of cryptocurrencies.
๐ Three laws came into force in Malta back in 2018: on virtual financial assets, work in the field of digital innovation, and innovative technologies and services. In addition, the Maltese Parliament approved a national strategy for the development of blockchain technologies. Digital currency, according to Prime Minister Joseph Muscat, will be the "inevitable future of money."
๐ถ For individuals, cryptocurrencies are not subject to income tax. If coins are transferred as part of a coin exchange or trading business, profits are taxed at the standard corporate income tax rate of 35%.
๐ There is no full regulation of cryptocurrencies in Cyprus. The government recognizes cryptocurrencies as a financial instrument, so Cypriot investment companies can legally use them.
๐ถ Cryptocurrency trading income is taxed. The income tax rate for companies is 12.5%, and for individuals, the tax is determined on a progressive scale.