Establishing a cryptocurrency company in the EU: which jurisdiction is suitable for you?

The European Union has become a prime destination for cryptocurrency businesses looking for a stable regulatory environment. Different member states offer various regulatory structures, tax benefits, and business conditions that can significantly affect your crypto venture.

Here are some of the top locations in the EU for establishing a cryptocurrency business.

1. Malta: The Blockchain Island

Malta is often called the “Blockchain Island” due to its leadership in the cryptocurrency world. The Virtual Financial Assets Act (VFA) provides a clear regulatory framework for crypto businesses. With a corporate tax rate as low as 5%, Malta is appealing to both startups and established companies.

2. Estonia: Digital Innovation Hub

Estonia is known for its tech-savvy environment and e-residency program, allowing entrepreneurs to manage businesses entirely online. The Financial Intelligence Unit (FIU) oversees crypto exchanges and wallet providers with a simplified licensing process. Estonia’s 20% corporate tax is only applied to distributed profits, making it an attractive option for reinvestment-focused companies.

3. Germany: Regulatory Certainty

Germany recognizes cryptocurrencies as legal tender, providing clear regulatory guidelines through the Federal Financial Supervisory Authority (BaFin). While operational costs may be higher, Germany offers regulatory certainty and strong banking connections, ideal for companies seeking stability in the EU market.

4. Switzerland: The Crypto Valley

Though not part of the EU, Switzerland is often discussed due to its favorable cryptocurrency regulations. The Swiss Financial Market Supervisory Authority (FINMA) has set clear rules for ICOs and crypto businesses, promoting transparency. Zug, known as “Crypto Valley,” offers a supportive ecosystem and tax incentives.

5. Portugal: Tax-Friendly Environment

Portugal has become a favored destination for cryptocurrency ventures thanks to its tax advantages. Crypto transactions are exempt from VAT, and individual investors are not subject to capital gains tax. This has attracted many blockchain startups to cities like Lisbon, fostering a vibrant tech scene.

International Fintech Business (IFB) can help you enter the fintech industry. We can help you incorporate a crypto company in any popular jurisdiction or buy an existing company. Our experts can help answer any questions you may have. Contact us today!