Taxes on Cryptocurrencies in Europe: Overview of Trends and Changes

Cryptocurrencies continue to gain popularity among investors, and with this growth, the interest of governments in taxing profits from crypto assets also rises. In Europe, different countries are implementing their own taxation systems, which often causes concern among investors.

Denmark: Unrealized Income

Starting in 2026, Denmark will introduce a new tax of 42% on unrealized income from cryptocurrencies. This means that investors will have to pay taxes on profits even if they have not sold their assets. This approach has sparked lively discussions, as many believe it could lead to unforeseen financial difficulties for investors.

Italy: Increase in Capital Gains Tax

The Italian government recently announced an increase in the capital gains tax on Bitcoin from 26% to 42%. This decision is motivated by the desire to control the growing cryptocurrency market and ensure additional revenues for the state budget. Italian investors, especially those who actively trade Bitcoin, may feel the negative impact of this increase on their profits.

Comparison with Other EU Countries

In the European Union, there are significant differences in the approach to taxing cryptocurrencies. For example:

• Germany: In Germany, profits from the sale of cryptocurrencies are not taxed if the assets were held for more than one year. This makes Germany one of the most investor-friendly countries for cryptocurrency investments.
• France: In France, the capital gains tax is 30% for investments in cryptocurrencies. France also plans to introduce additional regulations to protect investors.
• Sweden: The capital gains tax in Sweden is 30%. However, the country has strict rules regarding the declaration of crypto assets.

Conclusion

With the increasing interest in cryptocurrencies in Europe, governments are trying to find a balance between market regulation and supporting innovation. However, the differences in tax rates and regulations between countries may influence the choice of location for cryptocurrency investments. Investors should closely monitor changes in tax legislation in their countries to avoid unforeseen financial burdens.