Interview: The Fiscal and Financial Reality of a Crypto Investor in Malta

As part of our analysis series on tax optimization strategies in Malta, we spoke with Nicolas, 36, an early Bitcoin investor who chose to establish himself on the island. He provides an unfiltered overview of his financial situation and strategic choices. His journey perfectly illustrates the opportunities Malta offers to cryptocurrency investors within a favorable tax and regulatory framework.

Can you tell us about your journey to settling in Malta?

I am a Maltese tax resident under the "ordinary non-dom" status. This choice was motivated by Malta's clear regulatory framework regarding cryptocurrencies and advantageous taxation for foreign-source income. Life here is particularly gentle and simple. It's exactly what I was looking for: an environment where I can focus on my investments while enjoying an exceptional quality of life.

What is your current asset structure?

My assets consist of 100% Bitcoin. I've chosen to keep a portion of these assets in Swiss banking institutions. This decision is part of a long-term preservation strategy, and I have no intention of converting these assets into fiat currency.

How do you use your Bitcoin as financial leverage?

Laughs I have quite a direct approach: I used my Bitcoin as collateral to borrow... and buy even more Bitcoin. It's a pure accumulation strategy. The ability to borrow against my Bitcoin deposited in Switzerland allows me to increase my exposure without having to sell my existing positions.

What about your real estate investment projects?

I plan to use the same strategy for real estate. My Bitcoin will serve as collateral to obtain real estate financing in Malta. This approach allows me to diversify my assets while maintaining my Bitcoin exposure.

What are the practical aspects of your daily life in Malta?

In terms of organization, I've set up a structure that allows me to focus on my main activities:

• Bi-weekly housekeeping services
• Regular participation in poker tournaments
• No salaried professional activity

What are the concrete advantages of your tax status in Malta?

The ordinary non-dom resident status offers several significant tax advantages, particularly on foreign-source income not remitted to Malta. In years when I don't make trades, I'm only taxed on what I remit to Malta, which represents about 3,000 to 4,000 euros. When I generate more significant income, I usually have to pay the minimum tax of 5,000 euros per year. My accountant handles all these aspects, allowing me to remain compliant while legally optimizing my tax situation.

How do you envision the evolution of your assets?

My strategy relies on the leverage provided by my Bitcoin. I can use them as collateral for various investments while maintaining my positions. It's a model that allows me to grow my Bitcoin exposure while developing other assets, such as real estate, without ever having to sell.

Editorial note: This interview illustrates a bold approach to cryptocurrency asset management, combining leverage and tax optimization in Malta. The strategy presented, although risky, demonstrates the new possibilities offered by digital assets within a favorable regulatory framework. It also highlights Malta's growing attractiveness for cryptocurrency investors, who find on the island a balance between advantageous tax framework and Mediterranean quality of life.