It is generally considered speculation when private individuals trade in cryptocurrencies, meaning that the currency is bought with a view to making a profit on the sale.

As a result, you normally have to inform the Danish Tax Agency (Skattestyrelsen) of the profit or loss you make when you sell your cryptocurrencies.

Enter your profit or loss in your tax assessment notice

Be sure to enter both profit and loss

If you have both made a profit and a loss on your transactions, you should normally enter your profit in box 20 of your tax assessment notice and your loss in box 58 of your tax assessment notice, respectively. You should not offset a loss against any profit.

Exceptional offsetting of loss against profit

If you do not own any bitcoins to start off with and buy, for example, 10 bitcoins in one transaction and then sell them in several transactions during the same income year, you may offset your loss against any profit you have made. But a condition for this is that you do not buy any more bitcoins in between your transactions.

This means that if, as an example, you sell 3 bitcoins with a profit and 3 without a profit, you have to make a net calculation.

  • If you are showing a profit after offsetting your loss, you should enter the profit in box 20 of your tax assessment notice.
  • If you are showing a loss after offsetting your loss, you should enter the loss in box 58 of your tax assessment notice.

If, however, you subsequently buy more bitcoins before you sell the last 4 from your original holding of 10, you should not make a net calculation. Instead, you should calculate each transaction individually according to the FIFO principle (FIFO = First In First Out). This means that the cryptocurrencies you bought first are the first ones you sell.

You cannot offset loss against profit from different kinds of cryptocurrency that were bought in several transactions and sold in the same income year. 

If in doubt, please contact us.

If you want to avoid outstanding tax you can state your expected profit or loss in your preliminary income assessment.

When you sell cryptocurrencies, you should calculate whether you have made a profit or a loss.

Profit or loss is the difference between the purchase price and the selling price.

If you have bought several of the same type of cryptocurrency and sell some of it, you have to calculate your profit and loss according to the First In First Out Principle (FIFO Principle). This means that if you bought 8 bitcoins in April and 5 in May and you want to sell 4 in June, you have to apply the purchase price of the first 4 bitcoins you bought in April to calculate your taxable profit or loss.

If, on the other hand, you sell all your bitcoins at the same time, you do not have to apply he FIFO principle but use the total purchase price for your entire stock of bitcoins to calculate your profit or loss.

You have to calculate the profit or loss for each transaction individually, which means that you cannot deduct a loss from one transaction from a profit from another transaction.

If you use one type of cryptocurrency (such as bitcoins) to pay for another type of cryptocurrency (such as ribbles), you are considered to have sold bitcoins in order to buy ribbles. That means that you also have to calculate any profit or loss you resulting from the transaction.

See how you calculate your transactions according to the FIFO principle and establish whether you have made a profit or a loss in examples 1 and 2 below.

Decorative image

There may be exceptions from the FIFO Principle and you are welcome to contact us if you need further information.

Please note that you enter any profit or loss in your tax assessment notice. You are normally not allowed to offset a loss against any profits you have made. As a rule, you should declare them in separate boxes: Losses in box 58 and profits in box 20 of your tax assessment notice.

Example 1: 

Example 2: 

When the intetion of buying cryptocurrencies is to make a profit it is called speculation. Cryptocurrency trading is generally considered speculation and that is why you should inform the Tax Agency by stating your profit or loss in your tax assessment notice when you sell your cryptocurrencies.

In case of doubt, we make an overall assessment taking various details related to the purchase into consideration.

Such details could be:

  • What currency did you buy - bitcoins for example?
  • What can it be used for?
  • Is the currency suited for speculation - rise or fall in exchange rate for example?
  • Is it possible to sell the currency with a profit?
  • Why did you buy the currency?
  • Are you the owner of the currency?

You can ask for a specific assessment if you are unsure

If you are unsure whether you are considered to have bought cryptocurrencies with a view to speculation, you can request a binding ruling containing a specific assessment.


Request a binding ruling 

When you buy and sell cryptocurrencies, you should keep certain information as documentation of your profit/loss calculation.

Such documentation could be:

  • Vouchers on orders, purchases, sales and payment
  • E-mails and other correspondence
  • Information about your wallet provider
  • Basis of agreement with your wallet provider
  • Information about the number of your wallet, meaning the public code
  • Basis of agreement in force at the time of purchase and possible subsequent changes
  • Printout of your cryptocurrency holdings
  • Bank account statements related to purchases and sales of cryptocurrencies
  • Printout of your transactions
  • Possible other relevant documentation of your purchases and sales to verify your ownership

If you move to Denmark

If you move to Denmark and become liable to pay tax to Denmark, you can request information about how your stock of cryptocurrencies will be considered for tax purposes. You do so by requesting a binding ruling from the Danish Tax Agency (Skattestyrelsen). This ruling is our decision on how you should handle your cryptocurrencies in relation to tax.

Request a binding ruling 

If you leave Denmark

If you leave Denmark and you no longer have a tax liability in Denmark, we will consider your stock of cryptocurrencies to be sold at market value on the day you left the country.

This means that if on the day you left Denmark the value exceeded the value at the time of purchase, you should enter the difference as profit in your tax assessment notice. If on the day you left Denmark the value was less than that at the time of purchase, the loss is tax-deductible.

If you cannot correct your tax assessment notice or if you have any questions about taxation of cryptocurrencies, please contact us.

We recommend that you contact us for a binding ruling if you are uncertain of what to do. Such a binding ruling is our decision on what the sale of cryptocurrencies means to your tax affairs.

If you have sold cryptocurrencies this year

If you sell cryptocurrencies this year and you are uncertain whether you will be taxed on the profit, please contact us for a binding ruling.

Request a binding ruling

If you have sold cryptocurrencies prior to this year

If you have sold cryptocurrencies before this year without entering the profit or loss in your tax assessment notice, you should correct the relevant notice.

If you are unsure whether your profit or loss from previous years is subject to tax or entitles you to a deduction, you are welcome to contact us for a binding ruling.

Request a binding ruling

Log on and correct your tax assessment notice