Gibraltar

Cryptocurrencies in Gibraltar are recognised as digital assets but not as legal tender. Gibraltar maintains a regulated environment for blockchain and crypto businesses, having established a comprehensive regulatory framework for Distributed Ledger Technology (DLT) providers under the Financial Services Act 2019. The Gibraltar Financial Services Commission (GFSC) regulates DLT providers, including cryptocurrency exchanges and wallet providers. Crypto taxation is administered by the Income Tax Office, applying general tax principles as specific crypto tax legislation is not yet in place. A key aspect of Gibraltar’s tax system is the absence of capital gains tax on any asset, including cryptocurrencies. This means individuals pay no tax on profits from selling, swapping, or converting crypto to fiat, regardless of the holding period. However, income from professional crypto activities, such as regular trading or mining, is considered ordinary income for individuals. This is subject to progressive income tax rates, capped at an effective rate of 25%. For licensed crypto entities, a corporate tax rate of 15% applies to profits accrued or derived in Gibraltar. Gibraltar does not levy Value Added Tax (VAT), so no VAT applies to crypto transactions or services. Staking and mining rewards for individuals are taxed as ordinary income at their applicable rate upon receipt. For businesses, mining profits are subject to corporate tax, with operational expenses being deductible. Rewards from Decentralized Finance (DeFi) activities are generally treated as ordinary income. NFTs are considered assets, and their sale is not subject to capital gains tax, however, income from NFT creation or trading as a regular activity may be taxed as ordinary income. Crypto-to-crypto swaps and crypto-to-fiat conversions are not subject to capital gains tax, but if these are part of a professional trading operation, the resulting income would be taxable. Gibraltar has committed to implementing the OECD's Crypto-Asset Reporting Framework (CARF) in 2027 or 2028. This initiative will require crypto service providers to collect and exchange tax information on crypto-asset transactions automatically with tax authorities, enhancing international tax transparency.