12/11/2025

15 min read

Do I have to pay taxes when I buy or sell Bitcoin?

You’ve bought Bitcoin or other cryptocurrencies and are wondering whether crypto is taxed? You’re not alone. Many crypto beginners aren’t sure when cryptocurrencies are taxable and when they’re not. Whether it’s buying, selling or swapping: what matters is what you do with your coins and tokens and how long you hold them. In this article, you’ll learn how crypto tax works, what remains tax-free and why good documentation can save you a lot of stress later.

Documentation: Record all transactions including purchase and sale date, price, fees and wallet addresses to declare crypto gains correctly.

International differences: Other countries like France, Italy or Austria have different rules, such as no tax exemption after a holding period or varying tax rates.

Do I have to pay tax when I sell Bitcoin?

In short: Yes, if you sell Bitcoin for a profit, you must declare this in your tax return.

Profits from Bitcoin sales are generally considered taxable disposal transactions. However, the exact rules can vary widely depending on where you live, as some countries treat crypto gains as capital income, while others categorise them as private or even commercial income.

Factors such as your holding period, the size of your gains, and how frequently you trade can all influence how your profits are taxed. The more actively you trade, the more likely it is that tax authorities will view your activity as commercial.

Because tax regulations differ across Europe, scroll down for an overview of how several notable countries handle crypto taxation. To ensure accuracy, make sure to document all your transactions in full when reporting your crypto taxes.

Crypto taxes in Germany

In Germany, cryptocurrencies are classed as private assets. Gains from disposals are taxable if you sell or swap Bitcoin or other cryptocurrencies within 12 months of purchase. After this speculation period, profits are usually tax-free. If you receive crypto through mining, it’s taxed as income from other services at the time it’s generated. This also applies to airdrops and hard forks.

Note: Swapping cryptocurrencies, such as Bitcoin for Ethereum, also counts as a disposal for tax purposes. You calculate the gain from the difference between the original purchase price and the market value of the received coins or tokens at the time of the swap.

Crypto taxes in Austria

Since March 2022, cryptocurrencies in Austria are generally classed as capital assets. Gains from selling or using Bitcoin and similar are usually taxed at a flat rate of 27.5%, regardless of how long you've held the assets.

What you should know about crypto tax in Austria:

Sale for fiat: Selling crypto for euros or other official currencies is taxed at 27.5%.
Legacy holdings: Crypto acquired before 28 February 2021 may still be sold tax-free after a one-year holding period.
Swapping crypto: These transactions often aren't treated as taxable disposals.
Staking, lending and airdrops: New coins received count as new assets and are fully taxed upon sale, as the acquisition cost is considered zero.
Mining: For private individuals, the 27.5% tax rate also applies unless the activity is classified as a business.
Losses: Losses from crypto can only be offset against other capital gains also taxed at 27.5%.
Tax return: Report crypto profits using form E1 or the supplement E1kV.

Crypto taxes in Switzerland

You live in Switzerland and invest in Bitcoin or other cryptocurrencies? Then you should know that private crypto gains are often tax-free, but not all activities are exempt. It depends on whether you hold your coins privately or use them commercially, and what kind of returns you generate.

Key points to bear in mind:

Capital gains for private investors: Selling crypto like Bitcoin is usually tax-free for private individuals, provided there’s no commercial classification.
Wealth tax: Your digital assets count as part of your wealth and must be declared annually on 31 December.
Mining & staking: Rewards from mining or staking may be treated as income and taxed, depending on their scope and organisation.
Airdrops: Coins or tokens received through airdrops are generally taxed as income at the time of receipt.
Commercial trading: Frequent, systematic or high-volume trading may lead to a classification as a business, making profits taxable.

Crypto taxes in France

In France, crypto gains are generally taxable for private individuals, whether you sell Bitcoin for euros or swap one coin for another. Tax rules vary depending on how active you are. Occasional traders pay a flat rate, while professional traders face stricter regulations.

What you should know about crypto tax in France:

Flat tax 30%: Private gains from selling crypto are taxed at a flat rate of 30%, including social contributions.
€305 threshold: If your total crypto sale proceeds stay under this amount in a calendar year, no tax is due.
No tax-free long-term holding: France doesn’t offer tax exemption for long-term crypto holding.
Professional crypto trading: Regular or systematic trading can lead to your profits being classified as business income, taxed at the progressive income rate.
Mining: Mining earnings count as non-commercial income and are taxed at your personal income tax rate.
Swapping crypto: These transactions may be taxable if they result in realised gains.
Staking, airdrops and forks: These are not clearly regulated but often count as non-commercial income. If paid out regularly, tax may be due immediately, or only later when sold, based on a zero acquisition cost.

Crypto taxes in Italy

In Italy, crypto gains are taxable once you sell your coins or tokens at a profit. The current tax rate is 26%, and until the end of 2024 a tax-free threshold of €2,000 applied. From 2025, this exemption will no longer apply, and from 2026 the rate is set to rise to 33%. Income from staking, mining or airdrops must also be declared, either as capital gains or other income depending on the source.

Key facts about crypto taxation in Italy:

Capital gains from sales: Gains over €2,000 per year are currently taxed at 26%.
New rules from 2025: The €2,000 threshold will be removed, and from 2026 a higher tax rate of 33% will apply.
Mining & airdrops: These aren’t classed as capital gains but as other income, taxed at the progressive income tax rate.
Staking ruling 2022: Income from staking must be declared as capital income and included in the tax return.
Crypto to crypto: Swapping coins or tokens (e.g. Bitcoin for Ethereum) counts as a taxable disposal.
Reporting obligation: Crypto holdings, especially abroad, must be listed in form RW. If stored outside Italy, a 0.2% wealth tax may apply.
Commercial activity: Frequent trading or mining may result in classification as a self-employed activity, with related tax duties.

Calculating crypto taxes: tools and calculators

Calculating your crypto taxes becomes easier when you have a detailed record of all your transactions. This includes purchases, sales, swaps, and income from mining or staking. Specialised tools and crypto tax calculators handle these calculations and make reporting your digital assets much easier.

Many platforms import data directly from wallets or exchanges, log purchase and sale dates as well as amounts in euros or other fiat currencies, and automatically calculate your taxable gains or losses. This helps you correctly report Bitcoin, Ethereum and other cryptocurrencies.

Some tools also generate tax reports that you can submit directly to the tax office or hand over to your accountant. For international investors, many calculators also take country-specific rules into account for Germany, Austria, Switzerland, France or Italy. Crypto tax calculators help you track your income, capital gains and liabilities at any time and ensure your crypto gains are properly taxed.

Factors in calculating crypto tax

How much crypto tax you pay depends on several factors, especially how long you hold your coins or tokens, how much profit you make and the type of income you earn. These three points determine whether and how you must declare your profits and how to calculate them.

These three factors influence how your crypto tax is calculated:

Holding period

decides whether your gains are tax-free (e.g. in Germany after twelve months)
the holding period starts the day after the purchase date
key for calculations: document exact purchase and sale dates

Amount of profit

calculated as sale price minus acquisition cost minus transaction fees
each country has different allowances or flat rates

Type of income

profits from selling or swapping count as capital gains – important for determining the tax rate
income from mining or staking is often classed as ongoing earnings – here, the date of receipt is the basis for calculation
taxation varies: capital gains tax, income tax or flat-rate tax, depending on the country and income type

Conclusion: tips for declaring your crypto gains with Bitcoin and co

Manage your crypto taxes by recording every deposit and withdrawal, every purchase, sale or swap, and income from mining or staking. This helps you calculate your profits and losses accurately and report them to the tax office. Use crypto tax tools or calculators that import data directly from exchanges or wallets. They help you automatically determine taxable amounts, generate reports and avoid mistakes.

Track holding periods, tax-free allowances and fees to make the most of possible tax benefits. If you sell Bitcoin or other cryptocurrencies after the speculation period, you may be able to sell them tax-free. If in doubt, consult a tax adviser or crypto expert. This way, you stay on top of your crypto taxes and ensure your profits from Bitcoin and other cryptocurrencies are taxed correctly.

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