The regulatory environment for digital assets has matured significantly. With the implementation of the EU’s DAC8 directive and the OECD’s Crypto-Asset Reporting Framework (CARF), tax authorities now benefit from automated data exchange. Despite this harmonized transparency, the substantive tax treatment of cryptocurrencies—including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)—remains fragmented across European borders.
This report analyzes the fiscal obligations of private investors in Luxembourg compared to five key European neighbors.​
1. Luxembourg: The Speculative Framework
Luxembourg applies traditional « speculation » principles to digital assets, governed primarily by Articles 99 and 99bis of the Income Tax Law.
- Taxable Events: Unique among many neighbors, Luxembourg treats the exchange of one cryptocurrency for another as a disposal, potentially triggering a tax liability.
- Holding Period: Gains realized within a 6-month period are classified as speculative and taxed at the taxpayer’s progressive income tax rate.
- Exemptions: Gains realized after a 6-month holding period are generally exempt for private individuals. An annual « de minimis » exemption of €500 applies to speculative gains.
- Reporting: Under Draft Law 8592, Luxembourgish service providers are now mandated to report transaction data directly to the Administration des contributions directes (ACD).
2. Portugal: Preferential Long-Term Treatment
Once a total tax haven for crypto, Portugal now operates a tiered system that rewards long-term holding.
- Holding Incentives: Capital gains on assets held for 365 days or more are exempt from tax (0%).
- Short-Term Trading: Assets sold within one year are subject to a flat tax rate of 28%.
- Neutrality: Crypto-to-crypto swaps remain tax-neutral; taxation is only deferred until the asset is converted into fiat currency.
3. Switzerland: Private Capital Gains Exemption
Switzerland maintains its status as a premier crypto hub by distinguishing between private wealth management and commercial activity.
- Capital Gains: For private individuals, capital gains on movable assets (including crypto) are tax-free.
- Professional Qualification: High-frequency trading or the use of professional tools may lead to a « professional trader » classification, where gains are taxed as ordinary income.
- Wealth Tax: While gains are exempt, the total value of the holdings must be declared for the annual Wealth Tax at the cantonal level.
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4. France: The "Flat Tax" Model
France utilizes a streamlined « Single Fixed Levy » (PFU) for digital assets.
- Tax Rate: Occasional investors pay a flat rate of 30% (comprising 12.8% income tax and 17.2% social contributions).
- Deferred Taxation: Tax is only triggered when « exiting » the ecosystem (conversion to fiat or payment for goods). Intra-crypto trades do not trigger a taxable event.
- Exemption Threshold: Disposals totaling less than €305 per year are exempt.
5. Austria: Alignment with Traditional Securities
Austria modernized its tax code in 2022 to treat cryptocurrencies similarly to stocks and bonds.
- Unified Rate: A special tax rate of 27.5% applies to all realized gains.
- Elimination of Holding Periods: Unlike Luxembourg, the holding period does not affect the tax rate; the 27.5% applies regardless of duration.
- Swap Neutrality: Exchanging one crypto-asset for another is not a taxable event.
6. The Netherlands: The De Facto Wealth Tax
The Netherlands does not tax capital gains directly; instead, it taxes the perceived value of the assets.
- Box 3 Taxation: Crypto is taxed as « Other Assets. » Investors pay tax on a notional (assumed) return on their total portfolio value as of January 1st.
- 2026 Outlook: For 2026, the notional yield is set at 7.78%, taxed at a flat 36%.
- Tax-Free Allowance: The first €51,000 (approx.) of total wealth remains exempt.
Comparative Summary Table (2026)
Jurisdiction | Crypto-to-Crypto Taxable? | Primary Tax Rate | Long-Term Exemption? |
Luxembourg | Yes | Progressive (to ~45%) | Yes (> 6 Months) |
Portugal | No | 28% | Yes (> 1 Year) |
Switzerland | No | 0% | Always (Private) |
France | No | 30% | No |
Austria | No | 27.5% | No |
Netherlands | No | ~2.8% (Effective) | N/A (Wealth Tax) |
Strategic Conclusion
Luxembourg’s current framework presents a dual challenge: it lacks the « tax-neutral » swap provisions found in France and Austria, and it imposes a high administrative burden on active traders. However, for « Buy and Hold » investors, the 6-month exemption remains one of the shortest and most favorable in the Eurozone.
