Country overview

#28

Malta

Country stats

Rating Points

310

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

4.1%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

180

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

20 500

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

7.4

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Legally allowed

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Minor danger

The overall level of security in a given country based on open data.

Crypto Salaries

Legally allowed

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Good

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Basic

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

Cryptofund

This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.

Good

Medium

Bad

intro

Malta has been famous for its loyal regulation of crypto entities since 2017. It’s one of the EU's first countries to regulate crypto assets.

Security level

Malta has a Minor danger security level according to our rating. Jurisdiction has 60.0 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 0.4 per 100,000 inhabitants a year.

Crypto Payments

According to the Malta Inland Revenue Department (IRD) tax guide (3), crypto payments are legal in the country.

When a payment is made or received in a cryptocurrency, it is treated like a payment in any other currency for income tax purposes. Accordingly, for businesses which accept payment for goods or services in cryptocurrency, there is no change to when revenue is recognised or the manner in which taxable profits are calculated.

Crypto Salaries

IRD tax guide (4) also mentions that crypto salaries/wages are taxable as wages in any other currency.

The same applies to payments of remuneration, such as salaries or wages, and therefore such should be regarded as taxable in terms of the general principles.

Legal

Malta Financial Services Authority (MFSA) (5) and Commissioner for Revenue (6) regulate virtual assets in Malta. You can check the latest updates from the regulator on their website (7).

License	Regulator	Type of Activity
VFA Class 1 license	MFSA	Investment advice
VFA Class 2 license	MFSA	Wallet provider
VFA Class 3 license	MFSA	P2P
VFA Class 4 license	MFSA	Exchange

List of MFSA licensed activities from the MFSA website

VFA Class 1 license

This is most suitable for intermediaries intending to provide cryptocurrency investment advice. For example, if you are running a consultancy firm in the VFA industry or are the middleman helping to receive and transmit orders,

VFA Class 2 license

This is highly recommended for wallet providers, peer-to-peer exchanges, and those looking to manage cryptocurrency investment portfolios. As such, this will be the best fit if you are operating a digital wallet product.

VFA Class 3 license

This grants you greater rights, allowing you to trade on your account. As such, it will be most suitable for you if you intend to operate an over-the-counter trader or market maker business.

VFA Class 4 license

The most extensive and all-rounder license, this provides the most excellent autonomy to all its holders. With a Class 4 license, you can operate a cryptocurrency exchange.

However, additional requirements are imposed when applying for a Class 4 license, and the Authority will also consider several other factors.

These requirements include the protection of investors and the general public, the safety of Malta's reputation, the promotion of innovation, competition, and choice, and the reputation and suitability of the applicant and all other parties connected with him or her.

According to the MFSA (7¹)site, there are a total of 40 companies registered in the VFA Framework. VFA Agents - 20, Whitepaper - 5, VFA Service Provider - 15.

Taxation

Tax name	Index
PIT tax Min	3
PIT tax Max	35
Corporate tax (CIT)	35
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	35
Wealth tax Min	0
Wealth tax Max	0

Taxation of DLT assets in Malta is regulated by local tax authorities CfR (Commissioner for Revenue). Its website has a detailed guide (8) about DLT's income taxation. Also, there is CfR guide (9) about duty taxation.

An important fact (10) about individual income is that individuals who are “resident in Malta but not domiciled in Malta are taxable only on income arising in Malta and on any foreign income remitted to Malta.”

PIT

According to PWC (11), Malta has a 35% PIT rate on income higher than 9509 EUR. This rate applies to all crypto-related personal income (salaries, mining, staking, etc.)

CGT

Long-term crypto profits have(12) a 15% tax rate and short-term implied to ordinary income tax.

CIT

Companies are subject to income tax at a flat rate of 35%. There is no corporate tax structure separate from income tax.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3, 4, and 8)GUIDELINES on the Income Tax Treatment of transactions or arrangements. PDF-file

5 and 7)Malta Financial Services Authority (MFSA). Supporting innovation and new technologies for financial services in the area of crypto-assets.

6)Commissioner for Revenue

7¹)Financial Services Register

9)GUIDELINES for the Duty on Documents & Transfers Act. PDF-file

10 and 11)Malta. Individual - Taxes on personal income. PWC

12)Taxation of Individuals. PDF-file

Articles

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In Which Countries Are Staking Rewards Taxed?

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Indonesia, Turkiye, Nigeria and Other Emerging Crypto Markets in 2024

Asia and Africa are the most perspective crypto markets by amount of users, and we review crypto legislation in key countries in these regions.

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Brazil: Hot Spot for Nomads and Biggest Fintech Market in LatAm

Brazil is a big economy with low legal barriers for crypto companies and here it's why.

intro

Malta has been famous for its loyal regulation of crypto entities since 2017. It’s one of the EU's first countries to regulate crypto assets.

Security level

Crypto Payments

According to the Malta Inland Revenue Department (IRD) tax guide (3), crypto payments are legal in the country.

Crypto Salaries

IRD tax guide (4) also mentions that crypto salaries/wages are taxable as wages in any other currency.

The same applies to payments of remuneration, such as salaries or wages, and therefore such should be regarded as taxable in terms of the general principles.

Legal

Malta Financial Services Authority (MFSA) (5) and Commissioner for Revenue (6) regulate virtual assets in Malta. You can check the latest updates from the regulator on their website (7).

License	Regulator	Type of Activity
VFA Class 1 license	MFSA	Investment advice
VFA Class 2 license	MFSA	Wallet provider
VFA Class 3 license	MFSA	P2P
VFA Class 4 license	MFSA	Exchange

List of MFSA licensed activities from the MFSA website

VFA Class 1 license

VFA Class 2 license

VFA Class 3 license

This grants you greater rights, allowing you to trade on your account. As such, it will be most suitable for you if you intend to operate an over-the-counter trader or market maker business.

VFA Class 4 license

The most extensive and all-rounder license, this provides the most excellent autonomy to all its holders. With a Class 4 license, you can operate a cryptocurrency exchange.

However, additional requirements are imposed when applying for a Class 4 license, and the Authority will also consider several other factors.

According to the MFSA (7¹)site, there are a total of 40 companies registered in the VFA Framework. VFA Agents - 20, Whitepaper - 5, VFA Service Provider - 15.

Taxation

Tax name	Index
PIT tax Min	3
PIT tax Max	35
Corporate tax (CIT)	35
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	35
Wealth tax Min	0
Wealth tax Max	0

PIT

According to PWC (11), Malta has a 35% PIT rate on income higher than 9509 EUR. This rate applies to all crypto-related personal income (salaries, mining, staking, etc.)

CGT

Long-term crypto profits have(12) a 15% tax rate and short-term implied to ordinary income tax.

CIT

Companies are subject to income tax at a flat rate of 35%. There is no corporate tax structure separate from income tax.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3, 4, and 8)GUIDELINES on the Income Tax Treatment of transactions or arrangements. PDF-file

5 and 7)Malta Financial Services Authority (MFSA). Supporting innovation and new technologies for financial services in the area of crypto-assets.

6)Commissioner for Revenue

7¹)Financial Services Register

9)GUIDELINES for the Duty on Documents & Transfers Act. PDF-file

10 and 11)Malta. Individual - Taxes on personal income. PWC

12)Taxation of Individuals. PDF-file