Updated: Jul 24, 2020
Given the approach that Estonia has taken towards emerging technologies, which includes the provision of an e-residency, the country has been dubbed the first digital nation. Make no mistake about it. Issuance of a cryptocurrency trading license to both local and international traders marked a huge milestone in Estonia’s stance on the crypto industry. Today, the government plays a vital role in making Estonia crypto landscaping even more rewarding and accommodating. Bitcoin trade thrives here and with a platform such as Buybitcoin24, you can buy Bitcoin now.
Now, to shed more light on why Estonia’s laws favor Bitcoin businesses, let’s dig deeper and explore the government's role in the whole undertaking.
How the government of Estonia is supporting Bitcoin Trading
In most countries, Cryptocurrencies are not yet recognized by the government. However, Estonians enjoy a bit more economic freedom and free trade, especially when it comes to trading Bitcoin. Today, the country ranks high among destinations that provide the most enabling environment for Bitcoin businesspersons. The fact that the government in Estonia has embraced BTC is even more appealing. You can buy Bitcoin globally with great ease in Estonia.
But while cryptocurrency trading in Estonia does not come with restrictions, you should note that Bitcoin is not regarded as the legal tender. Simply put, Estonian laws do not allow the replacement of their fiat currency with the crypto coin. Buybitcoin24 helps traders compare the best exchanges for Estonian traders by factoring in markets, trading volumes, number of users, payment methods, and fees.
Exploring Estonia’s Bitcoin taxation laws
Of course, you must pay taxes when you have set up a blockchain agency in Estonia. A quick look legal provision by the Estonia central bank (ECB) spells out among other things, the need to provide KYC details on an exchange platform. Moreover, any BTC enthusiast looking to start a business in the country only needs to acquire an e-residency and respective business licenses. You can do all this online.
The good news about trading Bitcoin in Estonia is that the returns are great, thanks to several ways of leveraging your trade. You do not pay VAT when buying or selling BTC in Estonia. When you buy Bitcoin under Estonian company, the corporate tax is 0%. And when you profit from it, tax on dividends for the first year is 20% and 14% in the second year. However, you are not required to pay dividends, not to mention that all reinvestment attract 0% tax. Most importantly, use Buybitcoin24 when shopping for the best exchanges and the fees they charge. Moreover, while e-residency in Estonia makes it easy to launch a blockchain company such as Buybitcoin24, it is not the same as acquiring Estonia tax residency. The process is fast and affordable, including the acquisition of the needed business licenses. On average, you will spend at least 20,000 Euros or 25,000 Euros on the higher side to get started. Here is a breakdown of everything about the Estonia e-residency program and Bitcoin business licensing.
Bitcoin is here to stay, but while it still faces the challenge of acceptance in some countries around the world, it has proved its worth. BTC is a great way to invest in digital currencies, and most importantly, trade online risk-free. If you are looking to set up a BTC business in Europe, Estonia is easily the best destination for your cryptocurrency exploits.