Crypto and taxes.

When you trade cryptocurrencies, you pay taxes on any gains. You can also get tax deductions on any losses. But unlike stocks and other assets that are automatically reported, you have to manually enter your gains and losses on Skat’s (The Danish Taxation Authority) website.

At Lunar, when it’s time to do your taxes, we’ll help you out. But first, we'll answer the most common questions about crypto and taxes: When do you need to pay taxes on cryptocurrency? How much can you expect to pay? And which boxes in the tax form do you need to fill in?

This is an indicative overview, and you alone are responsible for correctly reporting any gains to Skat. For further information, visit Skat's website.

When do I need to pay taxes on crypto?

You only pay taxes on cryptocurrency gains once you've sold them. If you made any losses, this can instead be deducted from your taxes. The deadline for reporting your gains and losses follows the same schedule as your tax assessment notice, typically in May.

How much do I need to pay in taxes from crypto?

The Danish Tax Agency considers cryptocurrency trading as ‘speculation’, so all gains are taxed as personal income. This means your tax rate will be the same as on your salary, between 37-52%, depending on your tax bracket and municipality.

Where do I report my gains and losses?

For common crypto assets (like BTC and ETH) or NFTs, you can report your crypto gains in box 20 of your tax assessment notice. For losses, you can register them in box 58. In simpler terms, because the taxation is handled differently for gains and losses, you can’t deduct losses from your gains like you can with stocks.

For stablecoins, wrapped tokens, and other crypto assets that track the price of an underlying asset, the rules are different. These are treated as financial contracts and taxed as capital income. Here, you can report your total gains in box 346 and your total losses in box 85, and losses can be offset against gains within this category.

If you want to avoid paying outstanding tax, you can always state your expected gains and losses on your preliminary income assessment (Forskudsopgørelsen). Please note that the information entered in your preliminary income assessment will not be transferred automatically to your tax assessment notice. You must therefore always ensure that your tax assessment notice is also updated. Here, you can report your expected gains in box 250 and your expected losses in box 449.

You can read more about cryptocurrency taxation on Skat’s website.

Example on taxation for crypto gains and losses.

Let's say you sell one Bitcoin for a gain of 1,000 DKK and later that year, you sell another for a loss of 1,000 DKK. With regular stocks, this would even out. But with cryptocurrency, the gain is taxed as personal income (e.g. 37%), so you pay 370 DKK in tax (1,000 x 0.37).

The loss, on the other hand, gives you a deduction value of about 25%, so you get 250 DKK back (1,000 x 0.25). In the end, you've lost 120 DKK (370 - 250) due to gains and losses being taxed differently. It's important to be aware of this when trading.

Reminder: Save documentation for all your trades so you can prove your gains and losses to Skat. Without it, your request for tax relief may be denied.

Easy tax reporting with Lunar.

We know that reporting gains and losses to Skat can seem unmanageable. When you trade cryptocurrency with Lunar, we'll help make it easier. When it’s time to report your taxes, you’ll receive a simple overview of your trades and a guide on how you can report them.