Prikhodko&Partners
Services
International corporate law
Business Setup and Support in Estonia CRYPTOCURRENCY CALCULATIONS IN ESTONIA

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

CRYPTOCURRENCY CALCULATIONS IN ESTONIA

Income received in cryptocurrency (gains from the transfer of property, income from employment, income from business activities) is taxed on the same basis as income received in traditional currency.

With regard to the taxation of virtual income, the purchase or sale price or the income received must be converted into euros at the cryptocurrency exchange rate (market price) valid on the date of receipt of income or expenses.

Pursuant to Part 1 of Article 15 of the Law on Income Tax, cryptocurrency is considered property.

Income from the transfer of cryptocurrency, including exchange (clauses 15(1) and 37(1) of the Law on Income Tax), is subject to income tax.

If a private person receives income from trading, buying, and selling cryptocurrency or from exchanging cryptocurrency for another cryptocurrency or traditional currency, the received income must be declared in tables 6.3 or 8.3 of the income declaration as income from the transfer of other property.

The revenue is calculated by the agreement as the difference between the sale price and the purchase price or, in the case of an exchange, between the price of the property received and the purchase price of the cryptocurrency.

It is necessary to declare only those operations that brought income. When a property is taxed, each transaction of transfer, in a particular exchange, is perceived as a separate object of taxation.

The alienation operation that caused losses can be taken into account for taxation purposes only in the case of the alienation of securities under the conditions provided for in Article 39 of the Law on Income Tax. Cryptocurrency is not considered a security, and losses incurred during the exchange of cryptocurrency cannot be taken into account for tax purposes. Therefore, it is impossible to announce such a transaction.

Cryptocurrency can be used to pay for goods or services. If an individual uses cryptocurrency to pay for goods and services, the resulting profit must be declared in table 6.3 or 8.3 of the income statement as profit from the transfer of other assets.

Profit is calculated as the difference between the price of goods or services received and the purchase of spent cryptocurrency.

If an individual decides to start or continue investing in cryptocurrency as a company (a legal entity), he must consider the company’s tax rules.

A resident company pays income tax on the distribution of profits, i.e. from the payment of dividends at the rate of 20/80. Benefits provided by the employer (additional benefits) to employees are subject to income tax at the rate of 20/80 and social tax at the rate of 33%. Expenses or payments of a resident company that are not related to the company’s activities are subject to income tax at the rate of 20/80.

Cryptocurrency lawyer in Estonia

Legal assistance on crypto issues in Estonia

Legal use of cryptocurrency
Legalization of income received from operations with crypto and investments in cryptocurrencies
Mining Bitcoin and Ethereum
Consulting on IEO
Taxation of withdrawal of assets in fiat money
Legal support of ICO and IEO projects
Structuring of blockchain companies
Assistance to crypto investors
The assistance of a lawyer on cryptocurrency investments
Registration of ICO/IEO/Defi and Mining

We provide full legal support for transactions with cryptocurrencies, ICO / IEO, Defi registration, and organization of cryptocurrency mining, which is why you landed on this page when you entered “cryptocurrency legal help”, “cryptocurrency lawyer”, and “bitcoin legal advice” into the search engine. help with cryptocurrencies”, “bitcoin consultations”, “lawyer’s advice on cryptocurrencies”, “blockchain contract”, “Ethereum contract”, “legal advice on cryptocurrencies and taxes”

Legal assistance in Estonia — Bitcoin and cryptocurrency.

Therefore, the assistance of lawyers in matters of cryptocurrencies, their mining, registration of IEO, Defi, and other crypto projects is a set of measures aimed at registration of such relationships in full compliance with the current legislation of Estonia and the EU.

The most common questions to our lawyers are:

Payment for services, works, real estate, and other assets in Estonia with Bitcoin (BTC) and Ethereum (ETH). Truth or myth?

In which cities in Hungary can you exchange Bitcoin, Ethereum, Ripple, and other cryptocurrencies?

How to buy goods for bitcoin in Estonia?

You can get answers to these and other questions by calling our lawyers or by leaving your phone number.

For example, cryptocurrency in Ukraine is not recognized as a means of payment, and due to some regulations and positions of central authorities, it is equated to surrogate money.

Our lawyers are perfectly versed in all the trends in the regulation of cryptocurrency in the world, including in Ukraine, and guarantee the most protected ways of using it.

Crypto exchange in Estonia (Tallinn)

Buying and selling cryptocurrency in Estonia through YK Prykhodko and partners is profitable and safe.

Is there really no corporate income tax in Estonia?

Estonia applies a deferred taxation system. This means that while profits remain in the company’s accounts or are reinvested in its development, the corporate income tax rate is exactly 0%. Tax is paid only when funds are distributed in favour of the founders.

What is the current tax rate on dividends? (Does the 14% preferential rate still apply?)

The preferential 14% tax rate on dividends was completely abolished from 1 January 2025. Currently, all distributed profits (dividends) are taxed at a single rate of 22% (calculated using the 22/78 formula on the amount of the distribution).

Can I open an account with a traditional Estonian bank remotely?

No. Traditional Estonian banks require proof of a close economic connection with the country (substance) — the presence of a genuinely leased office in Tallinn and employed resident staff. For remote businesses operating through e-Residency, the optimal and reliable solution is to use licensed payment institutions (EMIs) that provide full IBAN accounts.

Is a company required to pay a salary to its director?

Estonian law does not require a company to pay a mandatory salary to its director. If you are a tax resident of another country and do not live in Estonia, you may also be exempt from paying Estonian social tax (33%) provided that social insurance coverage in your country of actual residence is confirmed.

What are the conditions for obtaining a residence permit through business?

A successfully operating business is a lawful basis for obtaining a residence permit. The legislation requires an investment of at least EUR 65,000 in the company’s share capital for shareholders, or at least EUR 16,000 if the business is registered as a sole proprietorship.

Successful cases on the topic: