- Denmark to introduce a 42% tax on unused crypto gains, starting as early as 2026.
- The Danish tax will apply additionally to all crypto assets acquired since Bitcoin’s 2009 launch.
- Italy considers raising its Bitcoin capital gains tax from 26% to 42%, aligning with Denmark.
Denmark will become the first country to tax inactive gains from crypto investments. Starting 2026, Danish crypto investors may face a tax rate of up to 42% on unused capital gains, similar to the taxation of digital assets like Bitcoin.
The proposed legislation, developed by Denmark’s Tax Law Council, will also apply to crypto assets acquired since Bitcoin’s 2009 launch.
New Tax Proposal for Crypto Investments
If approved by the Danish Parliament, the proposed tax will target inactive gains on crypto holdings. Investors will be taxed on the increased value of their digital assets, even if they haven’t sold or traded them.
In a press report, Denmark’s Tax Minister, Rasmus Stoklund, explained that the changes will align crypto investments with the country’s existing tax policies on other forms of capital gains. The goal is to create a fairer system, given the increasing number of Danish investors entering the crypto market.
Broader Implications Across the EU
The Danish government’s decision could influence other countries within the European Union. Denmark’s tax bill also recommends that crypto exchanges and service providers report customer transactions to EU authorities, ensuring transparency and regulatory alignment across member states.
Meanwhile, Italy is also considering a tax increase for Bitcoin holders. As part of its 2025 budget plan, Italy’s Deputy Economy Minister, Maurizio Leo, has proposed raising the capital gains tax on Bitcoin from 26% to 42%, aligning it with the new Danish rate.
Read also: Bank of Italy to Release New Crypto Asset Guidelines
In addition to the proposed crypto tax hike, Italy plans to eliminate the minimum revenue threshold for its Digital Services Tax (DST), a tax imposed on digital companies operating within the country.
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