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Worried about how to report your cryptocurrency taxes? The good news is, filing your Lykke taxes is probably a lot easier than you think. Koinly, a crypto tax software that does all the tricky calculations for you, explains it all in this quick guide. Plus, don't forget to check out the Koinly promo code waiting for you at the end of this article!
1. Connect your Lykke account to Koinly.
Forget about creating your own complex spreadsheets and downloading tons of statements and reports. Simply connect your Lykke account to Koinly by uploading CSV files of your trades.
2. Let Koinly calculate your capital gains, losses and income
Koinly will be looking for transactions that resulted in a capital gain, a capital loss, and transactions that look like income. That's because crypto can be taxed as both Capital Gains Tax and Income Tax, depending on how the transaction happened — and on your country’s tax rules.
3. Download your Lykke crypto tax report
Here's where the going gets really good. Once it's tax time, simply download the right tax report for your country from Koinly's menu of crypto tax reports. You'll then be able to file your crypto taxes easily — and safely — knowing that you have all your crypto trades accounted for.
Each tax office has a slightly different process for this, as well as different tax deadlines. You can learn more about your country's crypto tax rules in Koinly’s regularly updated country guides.
4. File your crypto totals
Are you a DIYer at heart? Then you'll want to file your crypto taxes yourself. Equipped with your Koinly crypto tax report, it's pretty easy to file directly on your country's online tax filing platform.
Alternatively, if your accountant does your taxes, you can invite them to view your Lykke trades and tax report in Koinly. Grant your accountant access from your Koinly account settings. With a crypto tax report from Koinly, it's easy for your accountant to file your tax return.
5. How much do you pay?
In most countries, the amount of Income Tax and Capital Gains Tax owed on crypto depends on how long you’ve held your assets, and which income tax bracket you’re in. Typically, the higher your income, the greater the percentage of tax you'll pay on capital gains. Check out our updated country guides to find out what your tax bracket is.
Let’s take a quick look at how 5 countries tax crypto across Europe.
The United Kingdom
In the UK, crypto is subject to either Capital Gains Tax or Income Tax — depending on the transaction.
When you swap, sell, spend, or gift (except to your spouse) crypto — you'll pay Capital Gains Tax on any profits from it. Your CGT tax rate will depend on your Income Tax band. The basic Capital Gains Tax rate for those earning less than £50,270 is 10%, while the higher rate for those earning more than £50,271 is 20%.
Each UK taxpayer gets £12,3000 in capital gains per year tax free — so you'll only pay Capital Gains Tax on any amount over this.
You won't pay tax on any losses, though you can offset losses against your net capital gain to reduce your tax bill.
Meanwhile, you'll pay Income Tax when HMRC sees your transactions as 'earning crypto'. This includes mining, staking, airdrops, earning interest, and being paid in crypto.
Crypto in France is viewed as a moveable asset. You'll pay tax whenever you sell crypto for fiat currency, but not when you trade one crypto for another. The type of tax you'll pay depends on the scale at which you're trading.
If you're an occasional trader, you'll pay a flat 30% tax known as the Single Fixed Levy. You'll pay this on the profits from a variety of transactions including selling crypto for fiat currency, staking rewards, liquidity mining, airdrops, and when you earn interest on crypto.
Meanwhile, professional traders will pay an incremental business tax on profits of up to 45%.
Crypto mining income falls under non-commercial profits and attracts a tax of 45%. However, those with an annual turnover of less than €70,000 may be eligible for a lower tax rate.
In Austria, the tax you'll pay depends on the type of crypto transactions you're making and how long you've held your crypto for. Currently, you won't pay any Income Tax on crypto investments you've held for more than a year.
You'll pay Income Tax whenever you sell crypto for fiat currency, swap crypto for crypto, spend crypto on goods or services, or when you receive an airdrop. How much you'll pay depends on how much you earn — but you'll pay anywhere between 0% to 55% in tax. This only applies if you’ve acquired and sold, swapped, or spent your crypto within the same year. You’ll pay no tax on crypto you’ve held for more than a year when you sell, swap, or spend it.
If you’re mining crypto — this is seen as income from commercial operations, regardless of the scale. This is subject to a separate flat tax of 25%.
Austria also has a specific flat tax rate for 'interest-bearing investments'. So anytime you're earning interest from crypto, you'll pay a flat 27.5% tax rate instead of your usual Income Tax rate. This would include a variety of crypto transactions like staking, liquidity mining, yield farming, and lending crypto.
Austria has released a draft bill on crypto tax due to come into force in March 2022. It states that crypto investors will pay the same Income Tax rate on long-term gains as they do on short term gains. It isn't retroactive, so it'll only apply to assets you buy after 1 March 2022 — if passed.
Cryptocurrency is viewed as a private asset in Germany by Bundeszentralamt für Steuern (BZSIn) and is subject to Income Tax in specific circumstances. It all depends on how long you've held your assets for.
When you swap, sell, or spend crypto you've held for less than a year — you'll pay Income Tax on the profits. This will be at the same rate you normally pay Income Tax.
When you swap, sell or spend crypto you've held for more than a year, your gains are tax free.
You'll also pay Income Tax when you're seen to be earning an additional income through crypto. This includes being paid in crypto, mining crypto, and staking crypto. If you sell crypto you've staked within 10 years, you'll also pay Income Tax on this.
For individual investors — not businesses or sole-traders, crypto in Switzerland attracts either a Wealth Tax or Income Tax, not a Capital Gains Tax. The amount you'll pay depends on the value of your assets, your transaction types, and the canton in which you live.
Each canton in Switzerland sets its own Wealth Tax rate and has the freedom to determine whether or not your cryptocurrency transactions should be considered as a private investment, or as business activity. The canton-specific wealth tax rate, and income tax rate is applied to the value of the most commonly used cryptocurrencies, as determined by the FTA on 31 December each year. The rates are based on the average of different exchanges. Swiss taxpayers must refer to this taxation value when declaring their crypto assets. If the FTA has not provided a value for a cryptocurrency you hold, you must declare the value as of 31 December using the value defined by the platform on which the assets are held.
If you're paid in crypto, you'll pay Income Tax. There is no specific guidance from the Swiss tax office on earning crypto through various other activities like staking, mining, yield farming and so on — however, it is safe to assume these activities could be seen as additional income and that Income Tax would apply.
Koinly is a crypto tax calculator built for cryptocurrency investors of all levels. Save hours on spreadsheets and complicated calculations with Lykke and Koinly. Hurry up to get registered at Koinly with this promo code: 1766E787.