
Can The Right Corporate Structure Help You Maximise Crypto ROIs?
Corporate and institutional investments in cryptocurrencies continue to gain traction. Whether it’s the allure of volatile markets ripe with opportunities or the ability to diversify into emerging assets, serial investors are taking this innovative asset class more seriously than ever.
The world’s best-known cryptocurrency, Bitcoin, continues to make headline news almost monthly. Whilst the debate on the coin’s real-world use and purpose spurs on, the one on whether BTC should form part of a diversified portfolio is settled. An investment of €1,000 made in July 2020 would have appreciated in value to €3,525.65 just one year later. An identical investment made in July 2016 would be valued at €58,900 in 2021.
Whilst Bitcoin maintains its popularity, the second-biggest cryptocurrency is likely to outshine it completely in the months and years to come. Ethereum (ETH) has long been considered the primary coin for Blockchain-based projects. Apart from forming the backbone of smart contracts, this token has now found renewed fame thanks to the growth of Non Fungible Tokens (NFTs).
As a result of its possible applications, the growth of the value of ETH has surpassed BTC. An investment of €1,000 in October 2020 would have appreciated to €11,645.71 one year on.
Paying tax on your cryptocurrency investments
Whether you’re an individual or represent a corporate entity, earnings from cryptocurrencies are liable to domiciled taxes. Countries across the globe treat this asset class in a variety of ways, leading to earnings derived from such investments being taxed in equally varied ways.
Malta has taken the lead in organising a crypto-friendly tax infrastructure designed for non-residents. With the proper corporate structure, earnings from cashouts can be taxed in an efficient manner with a maximum cap of just 5%.
What’s the most efficient way for you to proceed?
To set up the right corporate structure in Malta as a non-resident you will need to engage a regulated corporate services provider (CSP). NM Group is not only licensed to offer corporate services to foreign entities who wish to benefit from Malta’s reduced tax rates, but we also provide specialised packages for crypto holdings.
Beyond simply providing advice, our experienced team will be able to handle all necessary administration to ensure compliance with all local legal parameters.
Get in touch with one of our representatives to explore how you could be maximising your earnings from crypto investments today.
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