Crypto: European Regimes for Expats in 2025

For expatriates living in Europe, crypto taxation has become one of the most complex aspects of financial compliance.

What used to be a fragmented set of national practices is evolving into a continent-wide framework where automatic information exchange, stricter reporting and national tax divergences all converge. The EU’s MiCA framework has already harmonized licensing and operational standards, while DAC8 and the OECD’s Crypto-Asset Reporting Framework (CARF) will soon extend automatic reporting of digital assets across borders. From 2026, crypto-asset service providers in the EU — exchanges, custodians and even some wallet operators — will be obliged to transmit transaction-level data to tax administrations, and this information will be automatically exchanged between jurisdictions. In practice, expats will no longer be able to rely on the “opacity” of keeping their assets abroad. Both the country of origin and the country of residence will have access to the same data, leaving non-declaration as a high-risk strategy with severe penalties.

For expatriates living in Europe, crypto taxation has become one of the most complex aspects of financial compliance.

Despite this trend towards harmonized reporting, taxation itself remains a national prerogative. For expats, this means that the way digital assets are taxed depends very much on the country of residence. The divergences are considerable, and understanding them is central to structuring one’s affairs correctly.

• Spain: Residents face progressive capital gains tax (19–30%) and up to 47% on staking, mining or airdrop income. Crypto-to-crypto swaps are taxable, FIFO rules apply, and gains are attributed at the moment of disposal. Compliance is heavy: annual IRPF, Modelo 720 for foreign assets, Modelo 721 for foreign crypto, and Wealth Tax in most regions (though Madrid exempts it). Platforms and custodians also report holdings through Modelo 172 and 173, meaning the Tax Agency (AEAT) cross-checks data automatically.

  
  

• Portugal: Once a tax haven, Portugal now levies a 28% flat tax on assets sold within 12 months, but long-term holdings remain exempt. Staking and mining are taxed progressively (13–48%). For expats, this distinction between short- and long-term holdings is critical, and proper documentation is needed to prove the one-year period.

  
  

• Germany: Still one of the most attractive regimes for long-term investors. Crypto held for over one year is exempt; if disposed within a year, gains are taxed at progressive rates up to ~45%. Where lending or staking is involved, the holding period extends to 10 years. Annual exemption of €600 applies. Exit taxation rules may apply when changing residency, making treaty coordination essential.

  
  

• France: Crypto-to-fiat disposals are subject to the flat tax (PFU) at ~30%, covering both income tax and social contributions. Crypto-to-crypto exchanges remain untaxed until conversion to fiat. Staking, mining and airdrops are taxed under progressive income rates up to 45%. Expats must also report foreign accounts on form 3916/3916-bis, with fines of €750 per undeclared account.

  
  

• Italy: A 26% tax applies to annual crypto gains above €2,000, with mandatory reporting even if no tax is due. Airdrops, staking and mining income fall into the 23–43% income brackets. The “quadro RW” requires declaration of foreign assets, with penalties ranging from 10% to 50% of undeclared amounts.

  
  

• Netherlands: Crypto is not taxed under capital gains but falls under Box 3 wealth tax, which assumes a notional return on assets held on 1 January, taxed at up to 36%. Staking and mining may be taxed under Box 1 as income. For expats, split-year residency means apportioning holdings for the year of arrival or departure.

  
  

• Austria: Since 2022, crypto is treated as capital income subject to a 27.5% tax, with no long-term exemption. Losses can offset other capital income. Custody abroad does not alter the obligation.

  
  

• United Kingdom: Gains are taxed at 10% or 20% depending on income bracket, with a CGT allowance of £3,000 in 2025. Staking, mining and airdrops are taxed as income (20–45%) and must be reported via Self Assessment. Record-keeping in GBP is required, and HMRC will begin receiving foreign exchange data through CARF.

  
  

• Switzerland: Private investors enjoy no capital gains tax but pay cantonal wealth tax (0.3–1%). Professional traders are taxed as businesses, with rates up to ~40%. The canton of residence is decisive for expats, given the variation in wealth tax and criteria for “professional” classification.

  
  

• Ireland: Capital gains tax applies at 33% above an annual exemption of €1,270. Crypto-related income is taxed at 20–40% plus USC/PRSI. Reporting is strict, with self-assessment and interim payments required.

  
  

• Denmark: Crypto is taxed as personal income, with gains taxed at marginal rates up to 53%. FIFO is mandatory. The authorities have identified extremely high levels of underreporting, and automatic exchange of information will further increase audit risk.

  
  

• Sweden: Capital gains are taxed at 30% as investment income. Staking and mining rewards can fall into earned income subject to rates of 32–52%. Expats must coordinate with SINK tax rules to avoid double taxation.

  
  

• Norway: Crypto is treated as property, taxed at 22% on gains plus wealth tax of ~0.7–0.9% depending on municipality. Holdings must be reported at 31 December each year.

  
  

• Belgium: Private “normal management of wealth” may be exempt, but speculative activity is taxed at 33% and professional activity at progressive rates (25–50%). Authorities are considering a 10% tax on financial gains including crypto. Expats must document investment profiles carefully to justify exemption.

  
  

• Luxembourg: Gains on assets held over six months are generally exempt; those held for less are taxed as speculative income. Regular trading can be reclassified as professional. Residency tests are strict for expats.

  
  

• Poland: A 19% flat tax applies to crypto gains, reported on PIT-38. Crypto-to-crypto trades are neutral until conversion. Non-compliance carries heavy penalties.

  
  

• Hungary: Since 2022, crypto income is taxed at 15% flat rate under a simplified regime.

  
  

• Croatia: Gains taxed at 10% but exempt if assets are held for over two years.

  
  

• Czech Republic: Crypto gains taxed as “other income” at 15–23% depending on the bracket; frequent activity may be classified as business income.

  
  

• Slovakia: Gains taxed under personal income tax rules, with potential healthcare contribution obligations.

  
  

• Romania: Gains taxed at 10%, with social contributions applied above thresholds.

  
  

• Bulgaria: Flat 10% tax on crypto gains, relatively favorable for expats.

  
  

• Malta: No capital gains tax on long-term holdings for individuals; trading as a business is taxed under corporate rules, but effective rates can be very low through refunds.

  
  

• Cyprus: No explicit capital gains tax on crypto for private investors; income from crypto-related services is taxed under standard income rules.

  
  

• Estonia: Individuals pay 20% on gains; companies face 0% on retained earnings and 20% only when distributing, making it attractive for crypto startups and DAOs.

  
  

• Lithuania: Gains generally taxed at 15–20%, with obligations to maintain strong AML/KYC documentation.

  
  

• Latvia: 20% tax on gains with special reporting requirements.

  
  

• Greece: Generally applies a 15% tax on crypto gains, although frequent traders may face reclassification. Documentation of fair market value in euros is essential.

The European landscape is therefore characterized by a tightening of transparency combined with very different fiscal outcomes depending on residence.

For expats, the decisive factor is no longer whether to declare crypto — automatic reporting will make this unavoidable — but how to structure holdings, select residence, and document transactions to remain compliant while optimizing tax exposure.

CRS already covers financial accounts, DAC7 captures online platforms, and with DAC8 and CARF, crypto transactions will be subject to the same global information flows. Authorities will receive transaction-level data, including DeFi and NFTs, and non-compliance will increasingly be treated as willful concealment.

At Business Expats we provide comprehensive coverage of this European environment, translating complex legal and fiscal frameworks into practical strategies tailored to expatriates. Our work connects EU-level regulation with national tax regimes, ensuring that compliance obligations are met while opportunities for optimization are not overlooked. Each expatriate profile is unique, and solutions must reflect residence rules, type of activity — holding, trading, staking, corporate — and long-term goals.

Julio César Sánchez

Co founder Business Expats

For further information regarding Crypto Assets Taxation register to our free webinar "Crypto Taxation in Spain: Cumplimiento, Planificación y Retos Transfronterizos" to be held next 9th of September via Google Meets.

Schedule a Free Consultation or contact our founders to prepare the right way for you in Spain.

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