Denmark to Consider 42% Tax on Unrealized Cryptocurrency Gains

In early 2025, Denmark’s Tax Law Council will introduce a bill to tax unrealized profits from cryptocurrencies.

The proposal aligns with the mark-to-market principle, requiring annual payments to the state for positive revaluations, regardless of whether digital assets are sold.

The bill is expected to include a requirement for crypto service providers to report their clients’ transactions.

The recommendations aim to “eliminate asymmetry in the taxation of profits and losses.”

According to the Council, discussing the initiative posed certain challenges due to the nature of crypto assets, “which are not centrally regulated by organizations such as the government or central bank.”

The legislative body recommended that the tax rules take effect no earlier than January 1, 2026.

Mads Eberhardt from Steno Research predicted that the tax rate on unrealized capital gains would be 42%.

BREAKING: Denmark becomes the first country in the world to tax unrealized capital gains on crypto, starting January 1, 2026. The tax on unrealized capital gains is 42%.

This will affect not only crypto acquired from that date but also crypto obtained as far back as the genesis…

— Mads Eberhardt (@MadsEberhardt) October 23, 2024

“This will affect not only cryptocurrencies acquired from the current date but also coins obtained as far back as January 2009, when Bitcoin emerged. The gloves are off. This is a war on cryptocurrencies,” commented the expert.

Earlier in October, ForkLog reported on Italy’s plans to increase the capital gains tax on cryptocurrencies to 42%.