Topic: Which European country best for Bitcoin mining? (Read 824 times)

Thank you, please advise about legal complications in Bulgaria, is bitcoin legal there?

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(Moderator's note: This post was edited by frodocooper to trim the quote from iluvbitcoins.)

Corporate Income Tax Rate - 10%

- Exemptions:
• Special purpose investment companies - 0%
• Collective investment schemes, admitted to public offering in Bulgaria, and licensed investment companies of the closed-end type - 0%

Capital Gains Tax Rate - 10%

- Exemptions:
• Capital gains derived from sale of shares through the Bulgarian Stock market or a regulated market in an EU/EEA member state - 0%

Debt:equity ratio - 3:1

Tax loss carry-forward - 5 years


Withholding Tax

Dividends - 5%

- Exemption:
• Dividends paid to legal entities which are tax residents in an EU/EEA member state - 0%

Interest and Royalties - 10%

- Exemption:
• As of 1 Jan 2011 interest and royalties paid to associated companies* that are tax residents in an EU member state - 5%

• Interest and Royalties paid to associated parties before 31 Dec 2010 - 10%

• Interest and Royalties paid to associated parties after 31 Dec 2014 - 0%

Special features

Transfer Pricing Documentation requirements:
• In 2010, the NRA issued TP Guidelines (based on the OECD TP Guidelines)

VAT

General rate - 20%

Reduced rate - 9% (for hotel accommodation)

Refund period - 2 months under certain conditions

Individual taxation

Personal Income Tax- 10% (flat rate taxation)

Mandatory Social Security Contributions

Employer: - 17.4%
Employee: - 12.9%
Maximum monthly taxable base - BGN 2,000

Hello Geeks

I need your feedback and opinion on below mentioned scenario:-

I am planning to setup a IT Company with focus on cryptocurrency and plan to do below mentioned activity:-

1. Setup my own small mining farm (like 10 to 20 miners)
2. Start a Cloud mining venture like Genesis Mining and sell out Cloud Mining contracts by leasing my miners.
3. Other IT activities.

Factors to consider while choosing a destination are:-

1. Low tax rate
2. Crypto friendly environment
3. Preferably low electricity costs
4. Muslim friendly country where veil & Hijab is allowed.
5. Easy immigration for Startup Entrepreneurs

Thank you. 

Now that you are looking elsewhere, why not Quebec?

As per research done till now, Bulgaria looks like best and most friendly option for doing crypto business in EU.

Any words on South American nations such as Chile?

Nope. KNCminer went bankrupt. The CEO then questioned how Chinese miners could possibly afford to mine when he couldn't. That tells us that Sweden is not the best place to be mining.



As Bulgarians are in the EU then presumably they have everywhere else to trade as well. I haven't heard anything about Bulgarian banks blocking foreign exchange transfers but you never know.

Sweden is home to KnCMiner, a Bitcoin mining company based in Stockholm. KnCMiner currently mines about 7.5% of all bitcoins.

Banks shut down exchanges....very sad! how are Bulgarians trading BTC?

Switzerland, known for its progressive attitudes toward individual rights in banking, has kept a similar attitude toward cryptocurrency regulation. The Western European country is conspicuously absent from the European Union and appears to have an open attitude toward the cryptocurrency industry.

Where exactly is bitcoin illegal?

Bulgaria embraces bitcoin more than most countries, but the banking system in Bulgaria is the bully when it comes to doing business. They recently shut down all exchanges out there.

https://www.ruskov-law.eu/bulgaria/article/legal-tax-treatment-bitcoin.html

This seems fairly informative. Also it's said the Bulgarian government is sitting on over 200,000 bitcoins so they may be well disposed towards until they sell it all at least.

Thank you, please advise about legal complications in Bulgaria, is bitcoin legal there?

Thank you, please advise about legal complications in Bulgaria, is bitcoin legal there?

...

Out of pure curiosity, what's wrong with where you're based now?

Despite the EU, there's incredible variance in tax rates and no doubt power costs too. One country may be totally viable, the one next door hopeless.

The obvious one, though not EU, is Belarus as they're going full tax free crypto but it doesn't sound like a fun place to live.

The number one thing by a long way is surely power costs. In that case I think it's Bulgaria that's the cheapest.

Yes, totally. Bitcoin is not regulated here at all. But there is no really much use of it at all in therms of: You can go buy coffee, bread, dinner, flowers etc. Well that looks much better option then Serbia, but not sure what are electricity rates there.

You would need to sell it(convert it to fiat EUR) then convert that to RSD(Serbian Dinar), and after that you can use it. But not sure how does that reflect doing that as company, how much taxes you need to pay for that, does this act look as "Foreign Income", since its Bitcoin involved, and not "Doing modeling job, or working for someone"

Trust me when i tell you...Taxes are here...20% for company...they will add you more taxes to pay because they "forget" to tell you. Electricity is here 0.17c when you spend more over 1650kw, basically 150$ per miner, industrial electricity is not that much from 0.17 maybe 1-2c less... Only thing about crypto..That our national bank has said is "Bitcoin is not currency".

Viva la Serbia /s

Thanks, i have asked my partner to look into it.

Factors to consider while choosing a destination are:-

1. Low tax rate
2. Crypto friendly environment
3. Preferably low electricity costs
4. Muslim friendly country where veil & Hijab is allowed.
5. Easy immigration for Startup Entrepreneurs

Thank you.  

I think Sweden is the most suitable country for mining because it is one of the cold countries of Europe, additional costs such as cooling are reduced

Some Arab countries have a very low cost for electricity so having mining farms down has to be very profitable, the problem is the heat

Pretty much, the government is trying to make it a lot easier for someone who's not from Serbia to start out a business, and that subsidies are humbly given out to all foreign investors. You have nothing to worry about it being crypto friendly, I don't think that government has any plans considering crypto. As player514, summer can get pretty hot and winters quite cold, so you can balance those two out. Freedom is something that's of abundance here, no one will bother you for whatever you're wearing or however you look as long as you're a nice person. Also, if you're interested, min wage is quite min and there are plenty of people that are more than ready/capable to work if you're not bringing your own team. Good luck.

Just a word of advice from myself, you should probably set up those machines to mine for yourself. I think people in general are weary about the idea of cloud mining. After all, why would they pay less for something that has the potential to make the owner more money? Furthermore, many other cloud mining companies have been exposed as scams in the past. Be a little cautious of how you approach the situation.

If you want to look for a place, ideally, you'd go somewhere North to set up, especially where it's a little cooler. You'll reduce the costs that you pay for cooling. Furthermore, the housing prices as you go further north and into the cold, I'm sure, would start dropping drastically, so keep that in mind.

Check Serbia.

1 - Lowest Tax in addition to tax deductions and subsidies for investors, please check > http://ras.gov.rs/invest-in-serbia/why-serbia/financial-benefits-and-incentives
2 - Crypto friendly legal framework, for more details you can contact their local Bitcoin association > [email protected]
3 - Cheapest electricity in the area
4 - In addition to Muslims, a sort of hijab is also worn by a number of older ladies and grandma's, cities such as Belgrade or Novi-Sad also have Syrian and Iraqi communities
5 - Simple immigration, please check this short video > https://www.youtube.com/watch?v=_m1PnY1Wiu4

Government agency to contact for details > [email protected] , +38111-339-8900
Easiest is to hire a local investment lawyer who can assist, preferably one recommended by a local Bitcoin association who is familiar with crypto bussines.

Check Serbia.

1 - Lowest Tax in addition to tax deductions and subsidies for investors, please check > http://ras.gov.rs/invest-in-serbia/why-serbia/financial-benefits-and-incentives
2 - Crypto friendly legal framework, for more details you can contact their local Bitcoin association > [email protected]
3 - Cheapest electricity in the area
4 - In addition to Muslims, a sort of hijab is also worn by a number of older ladies and grandma's, cities such as Belgrade or Novi-Sad also have Syrian and Iraqi communities
5 - Simple immigration, please check this short video > https://www.youtube.com/watch?v=_m1PnY1Wiu4

Government agency to contact for details > [email protected] , +38111-339-8900
Easiest is to hire a local investment lawyer who can assist, preferably one recommended by a local Bitcoin association who is familiar with crypto bussines.

Hello Geeks

I need your feedback and opinion on below mentioned scenario:-

I am planning to setup a IT Company with focus on cryptocurrency and plan to do below mentioned activity:-

1. Setup my own small mining farm (like 10 to 20 miners)
2. Start a Cloud mining venture like Genesis Mining and sell out Cloud Mining contracts by leasing my miners.
3. Other IT activities.

Factors to consider while choosing a destination are:-

1. Low tax rate
2. Crypto friendly environment
3. Preferably low electricity costs
4. Muslim friendly country where veil & Hijab is allowed.
5. Easy immigration for Startup Entrepreneurs

Thank you.