How to Report Crypto Income in the EU: A Complete 2024 Guide

Understanding Crypto Tax Reporting in the European Union

Reporting cryptocurrency income in the European Union is a critical responsibility for investors and traders. While the EU provides regulatory frameworks like MiCA (Markets in Crypto-Assets), tax rules vary significantly between member states. Failure to accurately declare crypto earnings can result in penalties, audits, or legal consequences. This guide breaks down the essentials of crypto tax compliance across EU jurisdictions.

Types of Crypto Income and Tax Treatment

EU countries categorize crypto activities differently, but most recognize these common income types:

1. Trading Profits – Taxed as capital gains in most countries (e.g., Germany, France). Rates range from 0% to 45%.
2. Staking/Mining Rewards – Often treated as miscellaneous income (e.g., Italy) or capital gains (e.g., Portugal).
3. Airdrops & Forks – Typically taxable upon receipt or disposal (e.g., Spain).
4. Crypto-to-Crypto Swaps – Considered disposal events in countries like Belgium and the Netherlands.

Note: Some nations like Malta offer tax exemptions for long-term holdings.

Step-by-Step Reporting Process

1. Track All Transactions

Use tools like Koinly or CoinTracking to log:

• Buy/sell dates and amounts
• Wallet addresses and exchange records
• Fair market value in EUR at transaction time

2. Determine Tax Residency

You pay taxes where you’re resident for 183+ days/year. Non-residents pay only on local-sourced income.

3. Calculate Gains/Losses

Most EU countries use FIFO (First-In-First-Out) accounting. Formula:

Gain = Selling Price - Acquisition Cost - Allowable Expenses

4. File National Tax Forms

Key forms by country:

• Germany: Annex SO (Capital Gains)
• France: Form 2086
• Spain: Modelo 720 for overseas holdings

Country-Specific Nuances

Country	Tax Rate	Key Rules
Germany	0% after 1-year hold	Tax-free if held >12 months
Portugal	0% on personal gains	Business activity taxed at 28%
Sweden	30% on all gains	No minimum threshold

Common Reporting Mistakes

• ❌ Forgetting DeFi transactions
• ❌ Misclassifying mining as non-taxable
• ❌ Omitting lost/stolen crypto (requires documentation)
• ❌ Using USD values instead of EUR conversions

FAQs: Reporting Crypto Income in the EU

Do I pay tax if I hold crypto without selling?

Generally no – taxation occurs upon disposal, except in countries like Norway that impose wealth tax on holdings.

How does the EU’s DAC8 directive affect me?

Starting 2026, DAC8 requires exchanges to report user transactions to tax authorities. Self-reporting remains mandatory.

Can I deduct crypto losses?

Yes, most countries allow capital loss carryforward (e.g., 3 years in Italy). Losses typically offset future gains.

Is Binance/Kraken reporting my data?

Major exchanges now share user data with EU authorities under existing frameworks. Always maintain independent records.

Pro Tips for Compliance

1. Use EUR values from ECB exchange rates for conversions
2. Retain records for 5-10 years (varies by country)
3. Consult local tax advisors – rules change frequently

Disclaimer: This guide provides general information. Tax obligations depend on individual circumstances and national laws. Always verify with a qualified tax professional in your jurisdiction.