There are two types of income that come from selling cryptocurrencies.
1) Capital gains.
Virtual currency is sold, which is obtained without providing related services to others.
Income from sales is subject to a personal income tax rate of 20%.
Income is determined as the difference between the acquisition cost and the disposal cost. If it is not possible to determine the purchase price of virtual currency, the purchase price is considered to be 0.
Income and expenses in cryptocurrencies shall be converted into euros in accordance with the exchange rate for the euro published by the European Central Bank in force at the beginning of the day on which the income is received or the expenses are incurred.
Thus, the day when the income from the sale of virtual currency is received is considered to be the day when the payer receives money or other things.
An individual shall submit a declaration to the SRS regarding income from the alienation of virtual currency regarding income from capital increase, depending on the amount of income received during the quarter:
- by the 15th day of the month following the quarter, if the total income from fixed asset transactions during the quarter exceeds EUR 1000;
- until 15 January of the following year, if the total income from fixed asset transactions does not exceed EUR 1000 per quarter.
2) Income from economic activity.
Virtual currency is sold as part of an economic activity – it is generated or received as remuneration.
In this case, economic activity must be registered and personal income tax must be paid in total.
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