E.g. We are open daily from 9am to 6pm
info@linkprofit.ie
 We don’t just sell a service - we deliver results.

Crypto Tax in the EU in 2025: What You Need to Know

07/07/2025

By Charlotte Hayes

As blockchain adoption gains momentum, EU residents engaged in crypto transactions must stay aware of evolving tax regulations and compliance obligations. From reporting frameworks to capital gains, here's a comprehensive look at the current landscape.

1. Mandatory Reporting Under MiCA and DAC8

Starting December 2024, the EU's MiCA regulation (Markets in Crypto‑Assets) introduced registration and supervision standards for Crypto‑Asset Service Providers (CASPs) 
Additionally, DAC8, the European crypto‑asset reporting directive, requires CASPs to report EU residents' crypto transactions to tax authorities. This framework becomes enforceable from 1 January 2026, with national implementations due by the end of 2025 coinledger.io.

Under DAC8, CASPs (including foreign exchanges serving EU users) must collect and share user data—transaction types, wallet info, tax IDs, and more—for both crypto‑to‑fiat and crypto‑to‑crypto transfer.

2. Declaring Crypto Gains and Losses

EU countries classify crypto gains as capital gains, taxed separately. Investors must use "other gains/losses" fields for self-reporting, similar to Denmark's system taxobservatory.eu.  Losses can typically offset gains, lowering tax liability.

Tax rates vary by nation—ranging from 10% in Bulgaria to 42% in Italy. France and Germany often apply flat 30% or 25% rates on crypto profits taxplaniq.com

3. Case Example: Stolen Crypto and Tax Implications

Even unusual events like crypto theft and recovery have tax consequences. In the U.S., for instance, if stolen crypto is later recovered and previously written off, the recovery is treated as taxable income reuters.com. EU countries are likely to follow similar principles deductions for losses may lead to taxable gains upon recovery.

4. National Differences Across EU States

Each EU member interprets MiCA and DAC8 through local laws. Some countries, like Portugal, still offer favorable conditions for crypto gains, while others, such as Italy, recently increased gains tax from 26% to 42% .

Poland, Hungary, and Czechia apply flat rates between 10–19%, and capital gains exemptions may apply after holding assets for a certain duration .

5. Compliance Strategies for EU Crypto Users

  • Maintain detailed records: document purchase prices, sale dates, and calculations of gains or losses.

  • Use compliant CASPs: partner with providers familiar with MiCA/DAC8 protocols to avoid non-compliance risks.

  • Consider residency and relocation: VAT/tax-advantage states like Malta and Cyprus may offer more favorable regimes just be mindful of overall residence and filing obligations.

  • Engage professional advice: tax consultants or crypto-savvy accountants can guide based on your country and activity profile.

6. VAT in the Digital Age and Blockchain Reporting

New EU VAT reforms under the ViDA package (effective April 2025) mandate cross-border e-invoicing and VAT compliance for digital services emifast.co.  Expect renewed scrutiny on crypto-related services, especially where invoicing or goods trade is involved.

From 2026 onward, crypto activity data will be shared automatically between tax jurisdictions under DAC8/CARF taxation-customs.ec.europa.eu taxation-customs.ec.europa.eu, making accurate reporting essential.

The EU crypto tax landscape in 2025 is one of increasing transparency and compliance. With MiCA, DAC8, and crypto gains reporting frameworks in place, crypto investors and traders must adopt proactive record-keeping, use compliant services, and understand national regulations.

Otherwise, they risk fines, audits, or misreporting.

For tailored guidance under EU frameworks, consider reaching out to LinkProfit.ie. We help crypto users and businesses optimize compliance and minimize tax exposure.

Share