Answer · confidence: partial
Which countries tax bitcoin less than regular pay, and did they change it lately?
Research question: Which countries tax bitcoin gains at a lower rate than ordinary income, and what tax changes have been made in the past two years?
The records show that in the US, bitcoin held more than a year is taxed at long-term capital gains rates of 0% to 20%, while bitcoin held a year or less is taxed as short-term gains at ordinary income rates of 10% to 37% 13. Germany is described as a more favourable regime for long-term holders, exempting cryptocurrencies held more than a year from taxation 12. The facts do not show a lower rate for Denmark or Sweden, where most cryptocurrencies are presumed to be taxed as investment assets and generally fall outside the special capital gains rules 1315. Recent changes include Germany's tax-free threshold for private sale gains rising to 1,000 euros in 2024 6 and a 2026 requirement for crypto cost basis tracking and reporting per wallet or exchange 9. The newest fact is from August 2026 5, but the facts cover only a few countries and do not confirm a complete list of lower-rate countries.
Checked 2026-10-18. Only documented and supported facts are used.
Dig deeper on this questionSources
[1] supported
In the US, bitcoin held for more than a year is taxed at long-term capital gains rates of 0% to 20%, depending on income.
"Long-term capital gains tax: If you’ve held cryptocurrency for more than a year, your disposals will be subject to long-term capital gains tax. This ranges from 0-20% depending on your income level."Crypto Tax Rates 2026: Breakdown by Income Level
[2] supported
Under German private sale rules, cryptocurrencies such as bitcoin count as 'other assets' (andere Wirtschaftsgüter) if they are sufficiently tradable.
"Auch Kryptowährungen sind Wirtschaftsgut, wenn sie eine ausreichende Verkehrsfähigkeit besitzen."Privates Veräußerungsgeschäft
[3] supported
Bitcoin held for one year or less is taxed as short-term gains, which are treated the same as ordinary income at rates of 10% to 37%.
"For tax purposes, this is treated the same as ordinary income and can range from 10%-37% depending on your income level (see above chart)."Crypto Tax Rates 2026: Breakdown by Income Level
[4] supported
For other assets, including crypto, the holding period that triggers taxation of a private sale gain is one year or ten years, depending on the asset type.
"Grundstücke: zehn Jahre, andere Wirtschaftsgüter: ein Jahr oder zehn Jahre"Privates Veräußerungsgeschäft
[5] supported
Under current US law, the wash sale rule covers stock and securities but not crypto, so crypto investors can sell and rebuy without that restriction.
"Under current law the wash sale rule covers stock and securities, not crypto."US Crypto Tax Reform 2026: What Congress Wants To Change
[6] supported
Gains from private sales are tax-free if they stay below an annual exemption threshold of 1,000 euros, a threshold in effect since 2024 (up from 600 euros for 2008–2023).
"Die Gewinne aus privaten Veräußerungsgeschäften bleiben steuerfrei, wenn sie niedriger als die Freigrenze von 1.000 Euro (seit 2024) pro Jahr sind."Privates Veräußerungsgeschäft
[7] supported
Gains from capital investments are taxed as capital income under §20 EStG regardless of holding period, rather than as private sales.
"Veräußerungsgewinne aus Kapitalanlagen unterliegen ebenfalls nicht der Besteuerung als privates Veräußerungsgeschäft, sondern sind unabhängig von Haltefristen als Kapitalertrag im Sinne des § 20 EStG steuerbar."Privates Veräußerungsgeschäft
[8] supported
Selling bitcoin to realize a tax loss and quickly buying back the same quantity can be treated as abusive tax structuring.
"Gestaltungmissbrauch kann jedoch vorliegen, wenn Wirtschaftsgüter (zum Beispiel Bitcoins) zunächst verkauft werden, um einen steuerlichen Verlust zu realisieren jedoch in engem zeitlichen Zusammenhang in gleicher Stückzahl zurückgekauft werden."Privates Veräußerungsgeschäft
[9] supported
One of the cryptocurrency tax changes taking effect in 2026 is a new requirement to track and report the cost basis for crypto assets, with reporting handled per wallet or exchange.
"The second change is a new requirement to track and report the cost basis for all crypto assets held separate..."2 Cryptocurrency Tax Rule Changes Going Into Effect in 2026
[10] documented
The IRS proposed a new reporting form, Form 1099-DA, which brokers would use to report proceeds from digital asset dispositions to taxpayers and the IRS. The notice does not address which countries tax bitcoin gains at lower rates.
"Form 1099-DA is used by brokers to report proceeds from (and in some cases, basis for) digital asset dispositions to taxpayers and to the IRS (Internal Revenue Code section 6045(a))."Proposed Collection; Comment Request for Digital Asset Proceeds From Broker Transactions (Treasury Department, Internal Revenue Service, 2024-04-22)
[11] supported
The document distinguishes long-term from short-term capital gains on cryptocurrency, with long-term meaning the asset was held more than a year.
"Long term means you held the currency for more than a year before selling or trading it, short term applies to less than a year."THE ROLE OF INTERNATIONAL TAX SYSTEMS IN THE TAXATION OF CRYPTOCURRENCIES (2023)
[12] supported
Germany exempts cryptocurrencies held for more than a year from taxation, which the review describes as a more favourable regime for long-term holders.
"Conversely, Germany offers a more favourable regime; cryptocurrencies held for over a year are exempt from taxation, incentivising long-term investment and simplifying tax obligations for holders (Legge, 2024)."Bitcoin, cryptocurrencies and tax evasion: A systematic literature review on global approaches to cryptocurrency taxation and the challenges for harmonising regulatory frameworks (2025)
[13] supported
In Denmark and Sweden, most cryptocurrencies are presumed to be taxed as assets held for investment and speculative purposes.
"In both countries, there appears to be a presumption that most cryptocurrencies should be taxed as assets held for investment and speculative purposes."Taxation of Cryptocurrencies from the Danish and Swedish Perspectives (2019)
[14] documented
South Africa's Taxation Laws Amendment Act No. 23 of 2018 amended the definition of 'financial instrument' in the Income Tax Act to include any cryptocurrency.
"The definition of ‘financial instrument’ in section 1(1) of the Income Tax Act No. 58 of 1962 (the Act) (South African Government 1962) was amended by the Taxation Laws Amendment Act No. 23 of 2018 to include ‘any cryptocurrency’."An analysis of issues relating to the taxation of cryptocurrencies as financial instruments (2020)
[15] supported
Cryptocurrencies generally fall outside the Danish and Swedish special rules for taxing capital gains and losses on certain assets, such as shares and currency claims.
"they generally fall outside the scope of Danish and Swedish lex specialis regulation on taxation of capital gains and losses from the sale of certain assets, for example, shares and claims in currency."Taxation of Cryptocurrencies from the Danish and Swedish Perspectives (2019)