How Are Cryptocurrencies Taxed in Europe?
A comprehensive guide to the tax treatment of cryptocurrencies across major European countries: taxable events, calculation methods and filing obligations.
Written by Elena Marchetti
Tax specialist in digital assets
The European crypto tax framework
In Europe, cryptocurrencies are considered digital assets subject to capital gains tax. Each country defines its own rules: France uses PMPA with a flat rate of 30%, Germany applies FIFO with an exemption after 12 months of holding, Italy uses LIFO at 33%. The DAC8 directive (2026) harmonises reporting obligations.
Events that trigger taxation
The main taxable events are: selling crypto for euros, paying with cryptocurrency, and in most countries (except France), crypto-to-crypto exchanges. Staking rewards and airdrops are also taxable at the time of receipt.
Filing obligations and forms
Each country requires specific forms: forms 2086 and 3916-bis in France, the Anlage SO in Germany, Modelo 100/720 in Spain, and the Modello 730 in Italy. Taxes Crypto automatically generates the amounts to report on each form.
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With potentially thousands of transactions and complex tax rules, manual calculation is risky and time-consuming. Taxes Crypto automatically applies your country's official method and generates a complete PDF report in just a few minutes.
The crypto flat tax: European comparison
Several European countries have adopted a flat tax to simplify crypto taxation. France applies 30% (PFU), Italy 26%, Belgium 33% (miscellaneous income), Portugal 28% (since 2023). Other countries integrate crypto into progressive income tax brackets: Germany (0-45%), Spain (19-28%), Netherlands (Box 3, approximately 36% on a notional basis).
Crypto and VAT in Europe
Since the Hedqvist ruling (CJEU 2015), Bitcoin exchanges for fiat currency are VAT-exempt in the EU. This exemption extends to most cryptocurrencies. However, NFTs, paid mining services, and certain DeFi services may be subject to VAT depending on national interpretations. For individual traders, VAT is generally not an issue.
Foreign account reporting: mandatory forms
In France, any account held on a foreign platform must be declared via form 3916-bis, with a penalty of 750 EUR per undeclared account. Similar obligations exist in Spain (Modelo 721 for crypto over 50,000 EUR), Italy (quadro RW), and Belgium. Even if you haven't made any gains, holding an account must be declared.
The future of crypto taxation in Europe
Three trends are emerging: progressive harmonization via DAC8 and MiCA, taxation of unrealized gains (already in place in the Netherlands via Box 3), and extension to DeFi assets and NFTs. The European Commission is working on a unified framework. Meanwhile, differences between countries create legal optimization opportunities. Taxes Crypto follows these developments and updates its calculations to remain compliant.
Official legal sources
This article is provided for informational purposes only and does not constitute tax, legal, or financial advice. Consult a qualified professional for your personal situation.
Elena Marchetti
Tax specialist in digital assets
Elena Marchetti is a European tax specialist focused on cryptocurrency taxation. Holding a Master's in Finance and certified as a tax advisor, she has been guiding crypto investors since 2018 through their tax obligations across Europe.
Crypto taxation · European regulation · DAC8 · MiCA
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