Denmark is considering introducing taxes on unrealized gains and losses for crypto assets starting in 2026. Authorities aim to simplify tax rules, but some investors are concerned about the upcoming changes. Is it really that bad? Let’s take a closer look.
The Danish Tax Council has released a 93-page report proposing three models for taxing cryptocurrencies:
- capital gains tax
• warehouse taxation
• inventory taxation
The latter means that users' crypto portfolios could be treated as a single asset taxed as of a specific date, regardless of whether the assets have been sold.
Similar rules already apply to traditional financial assets like stocks and bonds. The new law could make cryptocurrency taxation more predictable, but it could also be a financial blow for many if assets are taxed before they are sold.
This could result in taxes on both gains and losses, prompting a wave of discussions on social media. The proposed tax rate could be as high as 42%.
As for crypto service providers, the report indicates that the new bill will require providers, such as exchanges, to report customer transaction information in a format accessible to all EU countries.
It's important to note that the bill has not yet been enacted; it is merely a recommendation. New laws can only be passed after parliamentary discussions and will not take effect before 2026.
Taxes on crypto assets continue to be a hot topic, as similar trends are observed in other countries. But are investors ready for these new tax realities?
