The amount you pay in taxes on your cryptocurrency gains depends on how long you’ve held your assets and your personal income tax rate. Gains are generally tax-free if you've held the crypto for more than one year.
Understand the holding period and capital gains tax
Your holding period for crypto starts the day after you acquire the asset and ends the day you dispose of it, like selling, trading, or sending.
If you hold crypto for more than one year, your gains are generally tax-free. If you sell or dispose of crypto within one year, any gains above €1000 in total for the year are subject to income tax at your personal tax rate.
Example: Selling within one year
Let’s say you bought 1 bitcoin for €400 and sold it less than a year later for €1,400. Your gain is €1000. If your total gains from all private sales that year exceed €1000, the gain is subject to income tax.
Disclaimer: This information is for informational purposes only and should not be considered legal, tax, or financial advice. Please consult a tax professional for specific guidance. Please see our full disclaimer.