Finland

Finland considers cryptocurrencies as property, not legal tender. This means they are treated as capital assets for tax purposes under Finnish law. The crypto environment in Finland is regulated, making crypto activities legal while subjecting them to specific tax rules under the general income and capital gains frameworks. The Finnish Tax Administration, known as Vero, governs all aspects of crypto taxation in Finland. These rules primarily operate under Finland's Income Tax Act, which defines how various forms of income and capital gains are taxed. Profits from selling, swapping, or spending cryptocurrencies are subject to capital gains tax. This is levied at a progressive rate: 30% on annual gains up to €30,000, and 34% on annual gains exceeding €30,000. There is no distinction between short-term and long-term holdings, the same rates apply regardless of how long you held the asset. Converting crypto to fiat currency or exchanging one cryptocurrency for another (including stablecoin swaps) are both considered taxable disposal events, triggering capital gains. Finland does not offer any reduced rates or exemptions for holding crypto for a longer period. Businesses dealing with crypto are subject to a standard corporate tax rate of 20%. The purchase, transfer, or exchange of cryptocurrencies is exempt from Value Added Tax (VAT). Income generated from certain crypto activities is taxed differently. Staking rewards are taxed as income when received, at progressive earned income rates, and then the underlying staked assets are subject to capital gains tax upon later sale. Mining rewards are also taxed as earned income upon receipt, and you can deduct related expenses like electricity and equipment costs. For both mining and staking, the First-In, First-Out (FIFO) method is used to calculate the cost basis when assets are eventually sold. Decentralized Finance (DeFi) activities, such as yield farming or providing liquidity, are generally treated as taxable events, either as capital gains or income, depending on the nature of the transaction. For Non-Fungible Tokens (NFTs), their creation or initial sale is typically taxed as earned income, while subsequent resales are subject to capital gains tax. Finland is implementing new international reporting standards. Starting in 2026, Crypto Asset Service Providers (CASPs) will be required to collect and report user transaction data to the Finnish Tax Administration under the Crypto-Asset Reporting Framework (CARF) and the EU's DAC8 directive. The first reports from CASPs will be due in 2027, significantly increasing transaction transparency.