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How Bitcoin cryptocurrency taxes work in Finland

Bitcoin gains are taxed as capital income in Finland. They are treated the same way as dividens, rent or other similar income - labour taxation is a separate item.

Profits from Bitcoin trading become subject to income when they are traded into currency such as Euro or dollars, or alternatively when products are bought using the virtual cryptocurrencies. The tax percentage for capital income in Finland is 30% (in 2018) for sums under 30,000 euro and 34% in excess.

Tax will only need to be paid for the profits (cost-benefit) part of online Bitcoin trading. Citizens are expect to report their capital income in the annual tax filing. Before tax year 2017 unreported taxes were not collected, but now the tax authorities are employing technologies to match bank transfers and Bitcoin transactions.

This means the due amount can be collected as back taxes. In addition to trading with cryptocurrencies mining activities are also subject to taxes. Mining is seen as work requiring effort, and it is taxed like income from employment. Bitcoin mining is thus taxed using the progressive income tax.

More information on capital income taxation in Finland.

Written by Janita on Friday April 20, 2018
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