The capital gains tax regime on the resale of crypto-currencies is not to be confused with the tax obligations on investors in the case of mining and associated income such as airdrop or farming. Photo: Shutterstock

The capital gains tax regime on the resale of crypto-currencies is not to be confused with the tax obligations on investors in the case of mining and associated income such as airdrop or farming. Photo: Shutterstock

Taxation on capital gains from cryptocurrencies is evolving in EU countries. With a range that varies from 0% to 25%, Luxembourg is among the most convenient countries for investors, but caution is still required.

In Luxembourg, a holder of crypto-currencies for more than six months who then makes a capital gain on their currencies is not taxed. However, a currency miner or a person considered a speculator will have to pay a tax that varies between 22% and 25%, says French broker HelloSafe in a released on 23 February.

The study shows that six European Union countries are tax havens for crypto investors: Malta, Cyprus, Greece, Slovenia, Estonia and Germany, where the tax rate is zero. Be careful, however, on the other side of the Channel: the 0% rate is conditional on a gain of less than €600 over the current year and for cryptos held for more than a year.

In Luxembourg too, it is better to be careful when trading, and to keep all traces justifying that you have held the cryptos for more than six months, otherwise you may be considered as a speculator and have to pay.

Portugal, Sweden and Denmark make crypto traders pay dearly

At the other end of the table, three countries lead the way in taxation on crypto-currency capital gains: Denmark (between 37% and 52.06%), Sweden (30%) and Portugal (28%). HelloSafe points out that the latter used to be among the tax havens for crypto investors. It has switched to the other camp, at least for virtual currencies held for less than a year.

This overview focuses on capital gains made on the resale of cryptocurrencies, but investors are in a different boat when it comes to mining or revenue associated with dividends such as airdrop or farming yield, says a knowledgeable investor.


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Finally, it should be noted that companies active in cryptos will be subject to a new directive  and will be obliged to declare all their transactions. The estimates that by 2020 the loss of earnings in this sector will be around €93bn, says HelloSafe.

This story was first published in French on . It has been translated and edited for Delano.