The current taxation rules
for cryptocurrencies, across Europe vary significantly among member states, lacking an uniform approach.
In 2015 the EU Court of Justice established a precedent by considering "currencies" as equivalent to money for VAT purposes and some member states have followed this ruling. Currently the taxation of cryptocurrency assets can vary from 0% to 50% across EU countries.
In Germany exchanges between cryptocurrencies and fiat money are not subject to VAT. However when crypto is used for purchasing goods or services it is taxed accordingly. Additionally individuals engaging in cryptocurrency trading are liable for capital gains tax although there are exemptions for profits under €600 and long term holdings.
Estonia imposes taxes on cryptocurrency capital gains. Also applies VAT to crypto transactions. On the other hand Slovenia taxes income generated from cryptocurrencies. Does not tax capital gains.
Denmark treats companies like businesses when it comes to taxation but exempts private individuals from such obligations.
Spain is considering implementing tax incentives for blockchain and crypto related businesses.
Belgium applies a 33% tax on gains made through cryptocurrencies. In contrast Bulgaria has a capital gains tax rate of 10%, also there is uncertainty regarding the status of cryptocurrencies in the country.
Given the border nature of cryptocurrencies the Netherlands is advocating for coordinated EU regulations concerning cryptocurrency taxation and anti money laundering measures.