🇪🇺 Europe
Crypto & taxes in Malta
- Long-term investment
- Gains on crypto held as investment: 0% for individuals
- Frequent trading
- Taxed as business income, up to 35% (progressive)
- Key distinction
- Investment vs trading: drives 0% or up to 35%
- EU framework
- MiCA fully in force; VFA licences valid until 1/7/2026
Crypto regulation
Malta, an EU/EEA member, applies MiCA through the Markets in Crypto-Assets Act 2024, supervised by the Malta Financial Services Authority (MFSA). It pioneered the 2018 Virtual Financial Assets (VFA) Act: existing VFA licences remain valid under transitional grandfathering (MiCA Art. 143) until 1 July 2026, after which a MiCA CASP licence is required.
Taxation
Malta levies no wealth tax and no general CGT on mere appreciation: for an individual holding crypto as a long-term investment, the gain on disposal is generally untaxed (0%). Where the activity qualifies as frequent or business trading, profits are taxed as income under the progressive personal income tax rates up to 35%.
Useful information
The 'investment' vs 'trading' line (frequency, organisation, intent) is decisive for the rate: document your holding profile. Maltese tax guidelines also distinguish coin, financial and security tokens, with different VAT/income treatment.