![]() It may also be the case that many crypto-assets are immune to capital gains tax in Malta. Aside from that, there are no wealth, inheritance, estate or gift taxes in Malta. Also, while many crypto-millionaires may be young and hardly concerned about their passing, their sudden demise may be expropriative if occurring in the wrong place.Īssuming relocating to a more tax-efficient jurisdiction is possible, what would be the jurisdiction of choice? Malta jumps to mind for two main reasons its crypto-friendly legal environment and its generous remittance basis tax regime for non-doms. From hefty capital gains and transfer taxes in some countries to excruciating wealth and estate taxes in others, or all of the above in some others still the opportunities for making Uncle Sam happy are endless. As our colleagues on the ‘New Assets, New Planning’ panel at the IBA Annual Conference in Seoul highlighted, the world is awash with tax pitfalls and minefields for the ingenuous crypto geek. Now, consider Mr X wants to cash in on his ludicrous gains and diversify his wealth into more traditional and stable financial and real estate assets? Where to enjoy and solidify such a windfall in a tax-efficient manner? Although worth significantly less than in December 2017, his portfolio would still make for a sizeable fortune at the time of writing. As a result, a class of crypto-high net worth individuals has emerged, many of whom are young, globally mobile and eager to consolidate and enjoy their newfound wealth.Ĭonsider Mr X, a so called ‘early adopter’, still in his twenties, who quietly accumulated a portfolio of tens of thousands of bitcoin, as well as a number of other ‘altcoins’ and tokens – buying them for cents or mining them on his PC back when this was still possible. Admittedly, in spite of the hiatus, bitcoin and some other crypto assets are still highly valuable. With the crypto bubble having come and gone, at least for the time being, the debate on whether or not the story of cryptocurrency and blockchain is one of success or one of failure is still ongoing. In a timespan of barely two years, however, the world witnessed the meteoric rise and subsequent price correction of bitcoin and hundreds of other cryptocurrencies, altcoins and tokens. Is Malta the domicile of choice for crypto-millionaires?īack to Private Client Tax Committee publicationsīitcoin has been around since 2009, gradually increasing in value over the years under most people’s radar.
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