Taxes on cryptocurrencies in EU - 27 countries overview

[dealeris]

Dear Bitcointalkers,

We recently finished our summary on tax environment in EU which someone might find useful. Original link: http://blog.kaiserex.com/2018/10/01/taxation-on-cryptocurrencies-in-eu-27-countries-overview/

EU does not have a united opinion on a tax policy for cryptocurrencies yet. The only decision that has been made was in the end of 2015 when EU’s Court of Justice stated that  the exchange of traditional currencies for Bitcoin is an exempt from VAT.  The absence of EU guidelines led to different ways for crypto taxation among the countries and caused additional challenges to investors.

Belgium tax capital gains at 33% if they are made outside the normal management of private estate, which they defined as speculation to buy/sell quickly, borrow to have leverage while investing large amounts. If investment in cryptocurrency is made by a business or profits are made from day trading then it is treated as income from business and standard income tax rates are applied (25-50%). The only exemption from being taxed can be made for individuals who prove that all the transactions were a normal management of private assets.

Source: http://www.dvp-law.com/documents/news-items/20180202-is-winst-met-bitcoins-belastbaar.xml?lang=en

Bulgaria treats the capital gain from cryptocurrency the same as from any other financial asset. Individuals who pursued such gains should be taxed at 10% a year.

Croatia taxes cryptocurrency investors on realizing their profits at a rate of 12% a year or 18% if more than 500 000 USD per year.

Source: http://www.vfs.hr/dokumenti/priopcenja/2017/e-priopcenje-18122017.pdf

Cyprus has not taxes on cryptocurrencies.

Source: https://lawstrust.com/en/ico/pravovoj-status-kriptovalyut

Czeck Republic implemented exact same income tax on selling goods for cryptocurrency as for fiat. Mining is still tax free.

Source: https://www.zakonyprolidi.cz/cs/2016-368

Denmark applies a basic tax law “Statsskatteloven” to crypto. Hence, if it was bought for an intention to sell later and receive profit then gains will be taxed as personal income.

Source: https://skat.dk/skat.aspx?oid=2271294

Estonia treats cryptocurrency as a property and income tax is applied accordingly.  Each transaction is looked at separately as an object of taxation. Incomes from mining are taxed as business income. For wages income or business tax has to be applied.

Source: https://www.emta.ee/eng/private-client/declaration-income/other-income/taxation-private-persons-virtual

Finland issued some instructions in 2013 where Finish Tax Authority (Vero Skatt) states that capital gain needs to be taxed. They look at it as a trade.

Source: https://www.vero.fi/sv/Detaljerade_skatteanvisningar/anvisningar/48411/inkomstbeskattning_av_virtuella_valuto/

France considers cryptocurrency as movable property so, it is taxed 19%. Miners are taxed up to 45% as it is classified as non-commercial profits. All commercial activities are also taxed at a higher rate.

Source: http[Suspicious link removed]Permalien/BOI-BNC-CHAMP-10-10-20-40-20140711.pdf?doc=2824-PGP&identifiant=BOI-BNC-CHAMP-10-10-20-40-20140711

Germany classifies cryptocurrencies as unit of account, financial instruments. In a scenarios when it is used for payments it is nontaxable. Cryptocurrency holders are obligated to pay up to 45% private property tax. The private property tax exemption applies if you hold your cryptocurrency for at least 12 months.  Mining counts as a business so all taxed applied are the same as for other businesses.

Source: http://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2018-02-27-umsatzsteuerliche-behandlung-von-bitcoin-und-anderen-sog-virtuellen-waehrungen.pdf?__blob=publicationFile&v=1

Greece has not issued any policies regarding taxes on cryptocurrency. The only official opinion was released by the Bank of Greece in 2014.

Source: https://perma.cc/W9NN-3HDH

Hungary applies personal income tax which is 15% and Health Contribution tax which is 22%.

Ireland taxes capital gains involving cryptocurrencies at rate 33% (for investors). While up to 52% tax is applied to traders.

Source: https://liamburnsandco.ie/cryptocurrency-tax-guide/

Italy issued its guidance for applying taxes on crypto in 2016. Individuals who do not hold cryptocurrency for commercial or corporate purpose are tax exempt. The rest has to pay corporate income tax.

Source: https://www.mercati24.com/bitcoin-tasse/

Latvia classifies cryptocurrency as a digitally transmitted value. Income tax of 20% is applied.

Source: https://www.cobalt.legal/files/crypto_news_14_may_2018.pdf

Lithuania stated that if cryptocurrrency is used to buy goods and services then the VAT has to be added, if it sold and there is a profit then income tax 15% has to be applied unless the difference between buy and sell price was lover than 2500 EUR. The tax is applied the same as in Forex market. All operations have to be recorded and the gain will be taxed at the end of the tax year.

Companies have to pay a 15% taxes from a profit made in a year.

Luxembourg treats cryptocurrencies as actual currencies as they are used for buying goods and services. No clear tax policy is implemented.

Source: http://www.lessentiel.lu/fr/luxembourg/story/L-tat-garde-un-oeil-sur-la-monnaie-virtuelle-29561059

Malta is definitely a crypto friendly country. International businesses related to cryptocurrencies pay as little as 5% tax.

Netherlands do not tax capital gains on crypto unless it exceeds 30 000 EUR a year. Further taxes depend on how much savings you have already.

Source: https://www.grantthornton.nl/globalassets/1.-member-firms/netherlands/documenten/flyers-pdf/2017/bitcoin-hits-$10000-what-about-cryptocurrency

Poland has the most strict tax policies on cryptocurrencies. Physical person has to pay 1% on his trading volume so, every trade has to be reported within two weeks. So for instance, if you start with 11 000 EUR, make 100 trades and earn 3 000 EUR then you have to pay 11 000 EUR as civil-law operation tax and income tax will be 1 980 EUR (at a rate of 18% if the amount is lower than 25 244USD) so, in the end you are left with 1 020 EUR (ROI -90.73%). Person who is running an economical activity and its incomes are taxed at flat rate 19% or the same as the person who is not.

New Poland’s taxation clarification is on the way.

Source: https://www.mf.gov.pl/ministerstwo-finansow/wiadomosci/aktualnosci/ministerstwo-finansow2/-/asset_publisher/M1vU/content/skutki-podatkowe-obrotu-kryptowalutami-w-pit-vat-i-pcc

Portugal does not classify cryptocurrency as currency and they do not apply any personal income tax on cryptocurrency gains.

Source: http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/informacoes_vinculativas/despesa/civa/Documents/Informacao_12904.pdf

Romania defines cryptocurrency as electronically stored monetary value and declared that income from transactions in cryptocurrency has to be taxed.  In terms of taxes cryptocurrency belong to the category of movable goods.

Source: https://www.libertatea.ro/stiri/exclusiv-romanii-cu-bitcoin-datori-la-fisc-trebuie-platit-impozit-pe-venit-si-contributii-sociale-desi-monedele-virtuale-nu-sunt-reglementate-in-romania-2163395

Slovakia considers cryptocurrency as short – term financial assets other than money. Mining income or salary in cryptocurrency has to be taxed, however, there is no tax on capital gain.

Slovenia states that cryptocurrencies are virtual currencies. ICOs have to add VAT if the token has features like securities. These assets are not treated as financial instrument or shares so, the capital gain is not taxed.

Spain is taxing profits received from investing in cryptocurrencies under the Law on Income Tax of Individuals.

Source: http://www.bolsamania.com/declaracion-impuestos-renta/como-tributan-los-bitcoins-en-la-renta/

Sweden is treating cryptocurrency as a currency.

United Kingdom do not ask you to pay taxes if you earn less  than 11501 GBP a year. Everything what you earn between 11501 GBP and 45 000 GBP needs to be taxed at 20% if you earn above 150000 GBP then 45%.

Source: https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

[1714270154]

1714270154

[1714270154]

1714270154

[1714270154]

1714270154

[Lucius]

OysterCult, I think the OP won't answer you since he was last active 25 October 2019, so it is better to try contact him via his blog contact form. But the project seems abandoned, because there are no new articles for several months.

In site you posted prices are only in EUR, have you found someone who wants to sell real estate for crypto? In any case, be careful before making any payment, check the property and make sure everything is legal.

[Febo]

Thanks for sharing, that's what I was looking for. May I ask you, are you planning to do a similar article about it in 2020? It would be nice to know, thanks. Also, I would add here that, investing in Bulgaria became big. I live in Bulgaria because of my job but started to think that having a property here (both for living and business I mean) would be the right thing to do. I came across this site about Property for sale in Bansko from Suprimmo and planning to invest some cryptocurrency I have there. What do you think?

How countries treat crypto and how they tax them changes really fast. They are keep adding things. So for sure I would not relay on two years old posts for it. You should find website where your country inform citizens of changes and check all about crypto there. If still not sure you should go to your tax office and ask them there. Also. If you do all this, do not expect it will be same next year. You will have to research all again

[sbogovac]

[...]Netherlands do not tax capital gains on crypto unless it exceeds 30 000 EUR a year. Further taxes depend on how much savings you have already.[...]

This "it" refers to "holdings" not "earnings"; that is a huge difference: to earn €30.000 /y with anything takes serious effort, to "hold" €30.000 in (all!) savings is a lot easier. So don't think you can just move to the Netherlands and "earn" €30.000 /y (which actually is a nice yearly income for most people) without paying taxes...

[Naida_BR]

If you are leaving around Europe and you want to do business with crypto you should better select Malta Or Estonia.
There are a lot of non physical companies established in those two countries and there is so friendly taxation policies for crypto companies there.

[squatz1]

Didn't see the little disclaimer here, so I'm going to throw it on here now if people are lurking and thinking of using this for themselves.

None of the people on here are tax professionals, even if they are they're not going to be put their name and license on the line when they're helping people online for free. If you want to ensure you fully understand the tax implications  (in your particular country, state, municipality) then you should consult a licensed tax professional in that local area.

Paying a couple hundred bucks to ensure your not behind bars is worth it for me.

[Averim]

Interesting tag. The entire situation is very interesting, something like i don't recognize your virtual money but you have to pay taxes for them (Romania) and the tax percentages are very high. They could at least help us to get cheap electricity