How to do your crypto taxes in Denmark

How crypto is taxed in Denmark

In Denmark, cryptocurrency is generally treated as a speculative asset. Tax is triggered when you dispose of your coins or tokens. Simply holding crypto is not taxed. Selling, trading, or spending crypto is usually taxable.

Profits are taxed as personal income at progressive rates that can reach up to 57 percent, while losses generally give a deduction of around 26 percent. This mismatch means you might still owe tax even if your overall gains and losses roughly cancel out.

Taxable events and calculation method

Disposals include:

1. Selling crypto for DKK or other fiat
2. Trading one cryptocurrency for another
3. Using crypto to pay for goods, services, or fees (including network fees)

Other taxable income in crypto includes:

1. Airdrops, staking rewards, interest, and referral bonuses (taxed when received)
2. Mining income (usually treated as hobby-business income)

Denmark requires the FIFO (first in, first out) method to calculate cost basis and gains. You generally must calculate and report each transaction separately, without netting gains and losses across different coins. Common taxable events: sale for DKK or fiat, crypto-to-crypto trades, spending crypto, airdrops, staking and interest rewards, mining income, and rewards paid in crypto.

Special cases and speculative intent

Speculative intent is central to Danish crypto taxation. Even coins bought for fun, such as meme coins, can be considered speculative.

1. Transfers between your own wallets are not taxable but you must keep records to show they are internal
2. Lost keys are not deductible, while theft may be deductible depending on the circumstances
3. Hard forks are not taxed on receipt, but any later sale is fully taxable with a cost basis of DKK 0

If you are unsure whether your activity is speculative or how specific situations, such as gifts or theft, are treated, you can request a binding ruling from Skattestyrelsen (Danish Tax Agency).

Declaring crypto in your Danish tax return

In Denmark, you declare your crypto via the Danish Tax Agency’s E‑Tax portal (TastSelv) on skat.dk. You log in using your Civil Registration Number (CPR) and your TastSelv code, which you can find at the top right of your tax return.

Once logged in, you update your annual statement by choosing “Ændre årsopgørelsen” (“Amend tax assessment”) and entering the relevant crypto figures in the correct boxes. For “normal” crypto disposals such as selling, trading between coins, or spending crypto, you must declare your profit in Box 20 and any loss in Box 58. Box 20 is used for “Other personal income not subject to labour market contributions”, while Box 58 is used for “Other employment-related expenses”.

Deadlines and corrections

You report crypto via the E-Tax portal (TastSelv) on skat.dk. Log in with your Civil Registration Number (CPR) and TastSelv code.

1. Select Ændre årsopgørelsen (Amend tax assessment)
2. Enter your crypto figures in the appropriate boxes

For normal crypto disposals:

1. Box 20: profit (Other personal income not subject to labour market contributions)
2. Box 58: loss (Other employment-related expenses)

Special crypto situations

Certain types of crypto‑related income and contracts are reported differently:

1. Gifts, referral bonuses, and rewards/tasks:
2. Box 20 (Field 250) on the forskudsopgørelse (preliminary tax return)
3. Financial contracts such as margin and futures:
4. Box 346 if your gains are at least as large as your losses
5. Box 85 if your losses exceed your gains

How to track LBank transactions for taxes

To calculate your Danish crypto taxes correctly, you need a complete overview of all your LBank transactions. This means you must export both trading data and funding-related movements across spot, margin, and futures.

If something is missing, your gains/losses and income calculations may be wrong.

Step 1: Export your spot trading history (Order Center)

This file covers your crypto purchases and sales (used for capital gains calculations).

1. Log in to your LBank account.
2. Go to Trade and click Spot.
3. In the Spot window, click Order Center (the clock icon).
4. Go to Transaction History and click Export trade record.
5. Select a date range that covers your entire trading history.
6. Make sure all trading pairs are selected.
7. Click Generate Now.
8. When the status shows Generated, click Download.

This file is used to calculate gains and losses on your spot trades under Danish tax rules.

Step 2: Export your funding-related history

Trading data alone is not enough for Danish tax reporting. You must also export deposits and withdrawals, internal transfers, and other movements that may affect your taxable income.

1. While logged into LBank, use the same top navigation you used for Order Center.
2. Select Funding History.
3. Go to the Spot History tab.
4. Set the date range to cover all transactions.
5. Under Type / Bill Type, select All.
6. Click Download.
7. Repeat the process for Margin History and Futures History if you have used these products.

These files are needed to distinguish between deposits/withdrawals, interest, fees, and internal transfers, which can each be treated differently for Danish tax purposes.