Please be aware that mining activity as such is not taxable in the Estonian jurisdiction and registration of a legal entity is not required.

In addition, you should know that if a person is carrying out virtual currency mining or data processing independently and the income received is tax-free, the person will need to declare only his income as business income and on the basis of the tax return he will have to pay.

Please note that any person carrying out virtual currency mining must be registered as an individual entrepreneur or as a limited liability company. The registered individual entrepreneur can deduct expenses incurred to obtain business income, and declare such expenses.

Foster Swiss offers its clients and represented advice on the incorporation of various types of companies. We have the largest network of specialists in each of the required areas, corporate lawyers, financial specialists, tax and tax advisors, all with in-depth knowledge of each of the jurisdictions where we have a presence.

Income taxes in cryptocurrencies. In the case of virtual currency, income may be subject to tax in the following cases: changes in the price of virtual currency when buying and selling/exchanging virtual currency, for virtual currency mining and in the case of receiving payment in virtual currency for works performed.

Income in virtual currency is taxable in a similar way to income in conventional currency. For tax purposes, the purchase price of the virtual currency or the income will be converted into euros based on the exchange rate at market rate on the date of the transaction or on the date of receipt of income.

Tax on cryptocurrency invoicing. Cryptocurrency transactions are not subject to turnover tax.

Virtual currency is considered property within the meaning of Art. 15 para. 1 of the Estonian Income Tax Act (LIT). Keep in mind that according to the Law that governs the matter only the profits from the sale or exchange of alienated real estate are subject to income tax, that is, income tax is applied on the income received from the disposal of virtual currency, including the exchange.

All the services provided by Foster Swiss follow the strictest legality of the jurisdictions in which we have a presence. If you want to deepen about our services and rates, contact us through info@fosterswiss.com