Taxes on Crypto Loans in Europe: Country by Country (September 2023 UPDATE)

Crypto taxes for loans in Europe refer to the taxation regulations and obligations that individuals or businesses must comply with when using cryptocurrencies as collateral or lending/borrowing digital assets.

The average tax percentage on selling crypto is somewhere between 10%-50%. HOWEVER in many countries taking a crypto loan and spending it ARE NON-TAXABLE EVENTS.

Are crypto loans taxable in Europe🇪🇺?

Yes, crypto loans are generally considered taxable events in most European countries. The tax treatment may vary depending on the specific jurisdiction and the nature of the loan. It is essential to consult with a tax professional or accountant familiar with the regulations in your country.

How are crypto loans taxed?

The tax treatment of crypto loans can differ based on several factors such as the purpose of the loan, the length of the loan period, and the tax laws in your country. Generally, if you borrow crypto and pay interest on it, the interest payments may be subject to income tax. Similarly, if you lend out your crypto and earn interest, the interest received may be considered taxable income.

Do I need to report my crypto loans for taxation purposes?

In most European countries, it is mandatory to report your crypto loans for taxation purposes. You should keep track of all your crypto loan transactions, including the amount borrowed, the interest paid or received, and any relevant details. Ensure accurate record-keeping to facilitate the reporting process.

Are there any tax exemptions for crypto loans in Europe?

Some European countries may offer certain tax exemptions or deductions for crypto loans in specific circumstances. However, these exemptions can vary significantly, and it is crucial to consult with a tax professional to determine if you qualify for any exemptions based on your situation.

Can I offset interest paid on crypto loans against taxable income?

In some cases, the interest paid on crypto loans may be deductible against taxable income. However, the availability of this deduction depends on the specific tax laws in your country. It is advisable to seek advice from a tax expert to ensure proper compliance and maximize any potential deductions.

Crypto Taxes on Crypto Loans: Country by country

it’s always a good idea to double-check with your tax advisor or consult official sources for the latest updates. Here’s a general overview of how different European countries approach taxes on crypto loans:

Taxes on Crypto Loans in Germany 🇩🇪

In Germany, crypto loans are generally subject to taxation. Interest earned from lending out cryptocurrencies is considered taxable income, while interest paid on borrowed cryptocurrencies may be deductible against taxable income.

Taxes on Crypto Loans in France 🇫🇷

 In France, crypto loans are also subject to taxation. Lending out cryptocurrencies generates taxable income, while borrowing and paying interest on cryptocurrencies can be considered as interest expenses and may reduce taxable income.

Taxes on Crypto Loans in United Kingdom 🇬🇧

In the UK, the taxation of crypto loans can be complex. Interest received from lending out cryptocurrencies is typically subject to income tax. However, the tax treatment of borrowing and paying interest on cryptocurrencies can vary depending on factors such as the borrower’s purpose and trading activities.

Taxes on Crypto Loans in Spain 🇪🇸

In Spain, interest earned from lending out cryptocurrencies is considered taxable income and should be reported for tax purposes. The interest paid on borrowed cryptocurrencies may not necessarily be deductible against taxable income.

Taxes on Crypto Loans in Italy 🇮🇹

In Italy, interest earned from lending out cryptocurrencies may be subject to income tax. However, the tax treatment of borrowing and paying interest on cryptocurrencies can vary, and it’s essential to consult with a tax professional for accurate guidance.

Taxes on Crypto Loans in Switzerland 🇨🇭

 In Switzerland, crypto loans are generally treated as non-taxable events. Lending out cryptocurrencies or borrowing them does not typically result in immediate tax consequences. However, the interest earned from lending may still be subject to income tax.

Taxes on Crypto Loans in Netherlands 🇳🇱

In the Netherlands, both the lending and borrowing of cryptocurrencies are subject to taxation. Interest earned from lending out cryptocurrencies is considered taxable income, while interest paid on borrowed cryptocurrencies may be deductible against taxable income.

Taxes on Crypto Loans in Sweden 🇸🇪

: In Sweden, the taxation of crypto loans is somewhat complex. The interest earned from lending out cryptocurrencies may be subject to income tax. However, if the loan is deemed to be commercial in nature, additional tax rules and regulations may apply.

Taxes on Crypto Loans in Denmark 🇩🇰

In Denmark, interest earned from lending out cryptocurrencies is generally subject to income tax. Borrowing cryptocurrencies and paying interest on them may not have immediate tax consequences, but it’s important to keep accurate records as they might be relevant for future tax assessments.

Taxes on Crypto Loans in Austria 🇦🇹

In Austria, interest earned from lending out cryptocurrencies is typically considered taxable income. The tax treatment of borrowing and paying interest on cryptocurrencies may depend on various factors, including the purpose of the loan and the individual’s trading activities.

Taxes on Crypto Loans in Belgium 🇧🇪

In Belgium, the taxation of crypto loans depends on the purpose and duration of the loan. Interest earned from lending out cryptocurrencies is generally considered taxable income. However, if the loan is for professional purposes and the interest rate is market-based, it may benefit from certain tax exemptions.

Taxes on Crypto Loans in Finland 🇫🇮

 In Finland, crypto loans are taxed similarly to traditional loans. Interest earned from lending out cryptocurrencies is considered taxable income, while interest paid on borrowed cryptocurrencies may be deductible against taxable income.

Taxes on Crypto Loans in Norway 🇳🇴

 In Norway, interest earned from lending out cryptocurrencies is subject to income tax. However, the tax treatment of borrowing and paying interest on cryptocurrencies may vary depending on factors such as the borrower’s purpose and activities related to the loan.

Taxes on Crypto Loans in Greece 🇬🇷

In Greece, the taxation of crypto loans is still evolving. At present, interest earned from lending out cryptocurrencies is generally considered taxable income. However, specific regulations and guidelines regarding the tax treatment of borrowing and paying interest on cryptocurrencies are still being developed.

Taxes on Crypto Loans in Poland 🇵🇱

In Poland, interest earned from lending out cryptocurrencies is typically considered taxable income. Borrowing cryptocurrencies and paying interest on them may not have immediate tax consequences, but it’s important to consult with a tax professional for accurate advice.

Taxes on Crypto Loans in Estonia🇪🇪

In Estonia, crypto loans are subject to taxation under the Income Tax Act. If you are an individual, interest income from lending cryptocurrency would be considered taxable personal income. The tax rate varies depending on your total yearly income. Additionally, if you are engaged in regular lending activities, it might be seen as a business, and you would be subject to corporate income tax.

Taxes on Crypto Loans in Bulgaria🇧🇬

Bulgaria currently has no specific legislation regarding the taxation of crypto loans. However, it’s important to note that the Bulgarian National Revenue Agency treats cryptocurrency holdings as financial assets. If you earn interest income from lending cryptocurrencies, it may be considered part of your overall taxable income, subject to personal income tax rates.

Taxes on Crypto Loans in Croatia🇭🇷

In Croatia, income generated from lending crypto assets, including interest income from crypto loans, is subject to income tax regulations. The tax rates depend on your total income and are progressive. It’s advisable to keep detailed records of your transactions and consult with a tax professional to ensure compliance with Croatian tax laws.

Taxes on Crypto Loans in Cyprus🇨🇾

Cyprus does not have specific legislation focusing on the taxation of crypto loans. However, the Cyprus Tax Department treats cryptocurrency-related activities based on their individual circumstances. If you earn interest income from lending cryptocurrencies, it could be subject to taxation under capital gains tax or corporate income tax, depending on your situation.

Taxes on Crypto Loans in Czech Republic🇨🇿

In the Czech Republic, crypto loans fall under the category of loans provided by non-banking entities, which means they are subject to regulation by the Czech National Bank. Interest income earned from crypto loans is generally considered taxable income and subject to personal income tax rates, with the tax rate depending on your total yearly income.

Taxes on Crypto Loans in Ireland🇮🇪

In Ireland, the taxation of crypto loans is determined by how they are classified. If your lending activities are considered to be part of your trade or business, the interest income earned from crypto loans would be taxed as trading income, subject to the standard corporate tax rate of 12.5%. However, if your lending activities are not deemed a trade or business, the interest income may be subject to capital gains tax, depending on the specific circumstances.

Taxes on Crypto Loans in Hungary🇭🇺

In Hungary, there is currently no specific legislation addressing the taxation of crypto loans. However, the Hungarian National Bank treats cryptocurrencies as financial instruments, and income generated from lending crypto assets, including interest income from crypto loans, may be subject to personal income tax rates. It’s recommended to consult with a tax professional to determine how your specific situation may be treated.

Taxes on Crypto Loans in Latvia🇱🇻

Latvia does not have specific regulations regarding the taxation of crypto loans. However, if you earn interest income from lending cryptocurrencies, it could be considered part of your overall taxable income, subject to personal income tax rates. It’s advisable to keep detailed records of your transactions and consult with a tax professional to ensure compliance with Latvian tax laws.

Taxes on Crypto Loans in Lithuania🇱🇹

Lithuania currently does not have specific legislation addressing the taxation of crypto loans. However, income generated from lending crypto assets, including interest income from crypto loans, may be subject to personal income tax rates. It’s essential to keep accurate records of your transactions. Consult with a tax professional to understand how your specific circumstances may be treated.

Taxes on Crypto Loans in Luxembourg🇱🇺

Luxembourg has not issued specific regulations regarding the taxation of crypto loans. If you earn interest income from lending cryptocurrencies, it might be considered part of your overall taxable income, subject to personal income tax rates. It’s advisable to maintain detailed records of your transactions. Consult with a tax professional to ensure compliance with Luxembourgish tax laws.

Taxes on Crypto Loans in Malta🇲🇹

Malta has specific legislation governing virtual financial assets (VFAs), including cryptocurrencies. Interest income earned from lending cryptocurrencies, including crypto loans, may be subject to taxation under Maltese law. The applicable tax treatment depends on various factors, such as whether the lending activity is considered a trade or business. It’s recommended to consult with a tax professional familiar with Maltese tax regulations for accurate advice based on your specific circumstances.

Taxes on Crypto Loans in Romania🇷🇴

Romania currently does not have specific provisions addressing the taxation of crypto loans. However, income generated from lending crypto assets, including interest income from crypto loans, may be subject to personal income tax rates. The tax rates are progressive and depend on your total yearly income. It’s essential to keep thorough records of your transactions and consult with a tax professional to ensure compliance with Romanian tax laws.

Taxes on Crypto Loans in Slovakia🇸🇰

Slovakia has no specific legislation regarding the taxation of crypto loans. However, income earned from lending cryptocurrencies, including interest income from crypto loans, might be subject to personal income tax rates. It’s advisable to maintain comprehensive records of your transactions and consult with a tax professional to understand how your specific circumstances may be treated under Slovak tax laws.

Taxes on Crypto Loans in Slovenia🇸🇮

Slovenia currently does not have specific regulations addressing the taxation of crypto loans. However, income generated from lending crypto assets, including interest income from crypto loans, may be subject to personal income tax rates. It’s important to keep accurate records of your transactions. Consult with a tax professional to understand how your specific situation may be treated under Slovenian tax laws.

What is Koinly and how can it help with my taxes?

Koinly is a cryptocurrency tax software that aims to simplify the process of calculating and reporting taxes on cryptocurrency investments. It offers several features that can be beneficial for users when it comes to managing their tax obligations. Here’s how Koinly can help with taxes:

1. Data Import: Koinly allows users to import their crypto transaction data from various exchanges and wallets, making it easier to consolidate all relevant information in one place. Users can connect their exchange accounts or upload CSV files to streamline the data import process.

2. Automated Tax Calculations: Koinly’s platform automatically calculates capital gains, losses, and other taxable events based on the imported data. It applies different tax rules and accounting methods in accordance with the tax regulations of various countries.

3. Tax Reporting: Koinly generates detailed tax reports that can be used for filing tax returns. These reports include a summary of capital gains, losses, income from staking or lending, and other relevant information required for accurate tax reporting.

4. Compliance with Country-Specific Regulations: Koinly supports tax regulations from various countries and takes into account specific rules, thresholds, and exemptions applicable to each jurisdiction. This helps ensure compliance with local tax laws.

5. Real-Time Tax Insights: Koinly provides users with real-time insights into their tax liabilities, helping them understand the potential tax implications of their crypto activities. This allows users to make informed decisions and plan their tax obligations in advance.

6. Integration with Accountants: Koinly offers features that facilitate collaboration between users and their accountants. Users can grant their accountants access to their Koinly account, allowing them to review and validate tax calculations, and provide guidance if necessary.

It’s important to note that while Koinly can assist in organizing and calculating your cryptocurrency taxes, it’s still advisable to consult with a professional tax advisor or accountant who can review and validate the generated reports to ensure compliance with local regulations and individual circumstances.