Crypto Tax Information Sharing in Different Countries

Apologies in advance to the IOT team if this is not an appropriate topic or if it’s already somewhere (searched the forum, but didn’t a dedicated topic on this, only a US specific one, so I thought I’d create one).

Seeing as the majority (if not all) of us own some form of crypto, I thought it might be useful to exchange information on how Taxes work in different countries. Two main reasons:

  • Some (like myself) moved to a different country where the only information available is in the native language which, as much as you want to believe you speak, might be a bit tricky when it comes to tax lingo (my example, I live in Finland but I am unsure how this all works here).

  • Some might consider retiring somewhere (lucky you!) to a nice, cheap place but may not be aware what countries to consider.

I know Google is your friend (I personally fundamentally doubt it), but when it comes to taxes I rather be legit and at very least understand how it works.

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FINLAND

I believe you are taxed on capital gains depending on the amount:

  • Less than 10000 Eur profit = 30% of Total profit - Cost/Fees
  • 10000 Eur or more profit = 34% of Total profit - Cost/Fees

Had friends telling me if you make very small amount of profit 200Eur, 50 Eur, Tax office won’t really bother (seems fishy, especially in Finland - is this true?).

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FINLAND

What I don’t know is how it works if I exchange coins (e.g. exchange CRO to ADA / LINK) or how “fractional” selling works since all the example I could find in vero.fi were for integer type sales (ie., selling 1 ETH rather than for example 0.25 ETH).

Also how do you prove the cost and fees of an acquired coin? I have the emails and history of the exchange (I use Crypto . com) but would they trust that when I do my taxes?

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CROATIA

If you sell crypto for fiat and you made a profit, you must pay tax. (Unless you HODL for more than 2 years, then there is no taxation.) There is no taxation when making a profit from a crypto to crypto exchange, only if you sell for fiat or you buy a physical/virtual good using crypto.

Tax is 12% + city (usually between 0,5% to 1,5%)

Mining bitcoin or any other crypto is a taxable event.

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Hi, yes, thx for posting. We sure need more info on all this for other countries. I’m in Canada. But all new for now right. :slight_smile:

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FRANCE

Thank you for this initiative. I’ll share with you guys the tax situation in France. You will find an interesting white paper - in french- about this topic => google LivreBlanc Waltio ORWLavocats

Like in Croatia, you pay taxes if you sell crypto for fiat. Also, If you Hold your cryptocurrency you do not pay and transactions between crypto is not taxable.

However, If you sell crypto for fiat you pay 30% of your profit. If you did not make any profit you do not pay but you must prove it.
If you only hold your crypto, you do not pay taxes but you must declare all your accounts in exchanges you might have, even if you have no coins.
French tax authorities do not consider crypto : Security tokens; Non-fungible tokens nor Stable coins.
That being said, if you sell BTC against USDT you must pay 30% of your profit.

Also, they make the difference if you are trader or just a holder. Mining is not taxed as long as they do not sell their crypto for fiat ( sooner or later they need to, so , this is how they are taxed ).

I hope it helps and if there are french people reading this, check the attached link, it’s very useful.

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Definitely Interesting, thank you
I have been considering moving to Corsica which of Cours is Fr … Like England V Scotland or N Ireland their are TAX variations, do you know if Corsica has different TAX treatment, Please?

As you said, Corsica is France, so same tax rules like in the continent. I’ve heard that Portugal is good option, but I haven’t made a proper research yet.

I’m from Portugal (expat living in Finland) and for now Crypto has no tax. I’m sure this will change at some point, but given my country’s history this may take a while. Also because “crypto tax havens” will probably still be a thing even when most countries end up legislating on this, as a way to attract foreign money into the country. I know that countries offer citizenship in exchange for investment in the country, usually in real estate, so it wouldn’t surprise me if this is extended to crypto investment at some point.

It’s great to know people found this post useful, wasn’t sure if I should post it initially :smiley:

i have plenty of questions on the subject. is staking taxable? lending ona platform like compound? what about what happens on dex’s? taxable?

I started this Thread so people in the same country can hopefully help each other, but you didn’t specify where you do your taxes, so maybe clarify that so someone can maybe help with an answer.

I know for a fact that this depends on the country you do your taxes on, but as a rule of thumb I’d use caution and assume that any transaction done in a centralized exchange that is not FIAT to CRYPTO (one way only, not 2-way) is not taxable. Conversely CRYPTO to FIAT is definitely taxable event if your country taxes crypto (sometimes called virtual) currencies. DEXs are abit of a question mark since it’ll be hard for the tax office to prove that the wallet you use in DEXs actually belongs to you - unless you leave a trail of some kind.

Very common to have trades (e.g., swap ETH for LINK) as a taxable event, though I’m not sure if you only need to declare the trades or if you actually get taxed, since in my eyes a trade from Crypto to Crypto is not in itself a gain until you materialize it into Fiat and the coin you traded for may devalue so it may end up being a loss).

Mining seems to be already a taxable event in some countries too, though staking is not so common (surely this will change in countries where crypto gains are taxed).

Sorry for not being able to help, I only know what I read in the Tax Office website in Finland but I still have questions myself (haven’t yet cashed in any FIAT gains, waiting for the bullrun to actually shoot up).