Denmark Proposes Taxing Unrealized Crypto Gains Starting 2026

According to Cointelegraph, Denmark’s Tax Law Council has proposed a bill that could tax unrealized gains and losses on crypto assets held by Danish investors, potentially starting in 2026. The Council's 93-page report on crypto asset tax suggests that all crypto assets should be taxed under a unified set of rules. Three potential models for taxing crypto assets were considered: capital gains tax, warehouse taxation, and inventory taxation. Danish Tax Minister Rasmus Stoklund highlighted that many Danish crypto investors have faced unfair taxation under the current capital gains tax approach and advocated for simpler tax rules for crypto assets. The recommendations are not final, and some social media users have misinterpreted the report as indicating definite tax changes. The report appears to favor the “inventory taxation” method, which treats an investor's entire portfolio as a single inventory to be taxed annually, regardless of whether the assets have been sold. The Tax Law Council explained that inventory taxation would occur as capital income and would be continuous, irrespective of asset sales. The Council recommended three potential taxation models, each with distinct advantages. Under the inventory model, crypto assets would be taxed alongside other financial assets like stocks and bonds. This means Danish crypto asset owners could be taxed on both unrealized gains and losses. The recommendations did not specify how far back the new tax rules would apply to existing crypto holdings. Additionally, the Council proposed that crypto asset service providers, such as exchanges and payment firms, should report customer transaction information in a manner accessible to all European Union nations. The Tax Minister stated that the new bill would not be introduced to the Danish Parliament until early 2025, with the earliest possible implementation date being January 1, 2026. The recommendations must be evaluated and approved by the Danish Parliament before becoming law. Stoklund expressed the need for clearer and more appropriate rules in the area and looked forward to discussing the bill with the Folketing parties. Denmark’s Tax Council’s recommendations align with broader global efforts to tighten tax regulations on both crypto and traditional financial assets. For instance, on September 5, Democrat presidential candidate Kamala Harris endorsed a policy to introduce a 25% tax on unsold assets in the US. Similarly, the Italian government is considering raising the capital gains tax for Bitcoin holdings from 26% to 42% starting in 2025.