Denmark: crypto taxes at 42% on unrealized capital gains

By Daniele Corno

The cryptocurrency tax issue is hotter than ever. Denmark proposes 42% crypto taxes on unrealized gains

Denmark's COOL proposal

Denmark is preparing a law that could change the way crypto taxes are applied.

The government intends to tax unrealized gains; therefore, investors will have to pay even without selling their assets. The law, IF APPROVED, will take effect in 2026 and will apply to all cryptocurrencies, including those purchased in previous years, up to 2009.

The purpose of this measure is to make the crypto tax system fairer ( except for investors) by better balancing gains and losses.

In addition, companies offering cryptocurrency-related services will have to share their customers’ transaction data with tax authorities.

A tax that causes debate

The proposed 42 percent tax on unrealized gains has drawn much criticism.

Mads Eberhardt, an analyst at Steno Research, warns that this crypto tax could create great difficulties for investors in Denmark.

However, many investors consider it unfair to pay taxes without selling their assets. Eberhardt also called this measure a “war on crypto.” However, the proposal will have to be approved by the parliament before it goes into effect.

A global trend toward higher taxes

Denmark is not the only country that wants to tax cryptocurrencies more.

In fact, in the United States, Kamala Harris has proposed a 25 percent tax on unrealized gains. In Italy, the government is considering raising the tax on cryptocapital gains from 26 percent to 42 percent.