New Study Shows Where Crypto Investors Pay The Most Tax
Over 420M people worldwide now own cryptocurrency, generating potential tax revenues exceeding $1.2T annually for governments. A new study by trading platform Atmos analyzed crypto taxation policies worldwide to identify where crypto investors face the heaviest taxes from governments.
The research looked at crypto tax rules in 48 countries, checking how much each government charges in taxes when someone makes a $15,000 profit from cryptocurrency. Countries were ranked from highest to lowest based on the total tax amount collected from this standard profit scenario.
Iceland ranks first as the world’s most expensive country for crypto investors. The Nordic nation applies a progressive tax structure to cryptocurrency gains: 40% on gains up to $7,000 and 46% on amounts over $7,000. This tiered taxation system means that a local crypto owner would be charged $6,900 in taxes on every $15,000 capital gain, leaving them with just $8,100 in actual profits. Such high taxes may be hurting crypto interest, as less than 1.0% of Icelanders own cryptocurrency.
Belgium comes in second place through complex tax structures ranging from 0% to 50% and depending on how authorities classify a person’s trading activity. This complicated system means that Belgian crypto owners typically pay $4,950 in taxes on a $15,000 capital gain, keeping $10,050 in actual profits. The country reports 1.4% crypto ownership rates among its population, with roughly 168K people holding cryptocurrency.
Ireland matches Belgium in third position, implementing identical $4,950 tax charges on crypto capital gains. Irish investors face a 33% flat tax rate, resulting in $10,050 net returns from their $15,000 gains. Ireland shows low adoption, like other high-tax countries, with just 1.1% of its population owning crypto.
The Netherlands takes fourth place with a 31% tax rate on cryptocurrency gains. This means local crypto owners pay $4,650 in taxes on every $15,000 capital gain, allowing them to keep $10,350 in profits. The country registers stronger crypto adoption at 2.8% ownership rates, with nearly half a million people holding cryptocurrency.
Finland ranks fifth by applying a two-tier tax system to cryptocurrency profits: 30% for gains between $1,000 and $30,000, then 34% for amounts above $30,000. Under this setup, a Finnish crypto investor would owe $4,500 in taxes from a $15,000 gain, walking away with $10,500 in their pocket. About 1.4% of Finland’s population owns cryptocurrency, representing roughly 77K people.
France holds sixth position by charging a flat 30% tax rate on cryptocurrency gains. Locals here have to pay $4,500 in taxes on every $15,000, leaving them with $10,500 in profits, the same as in Finland. The country shows much higher crypto adoption at 4.7% ownership, with over 3M people holding digital currencies.
India matches France with the same 30% tax rate on cryptocurrency gains, meaning Indian crypto owners also pay $4,500 in taxes on a $15,000 capital gain, keeping $10,500 in profits. However, India shows even higher crypto adoption at 6.6% ownership, with over 93.5 million people holding digital currencies. It makes India home to the world’s largest crypto community by sheer numbers. The size of the local user base also suggests that India has the potential to collect the world’s largest tax revenue.
Sweden follows the same 30% taxation approach as France and India, resulting in Swedish cryptocurrency owners paying $4,500 on every $15,000 profit. Around 1.6% of Swedes own cryptocurrency, representing about 170K digital currency investors.
Portugal sits in ninth place with a 28% tax on crypto profits. When Portuguese investors make $15,000 from their digital currencies, they must give $4,200 to the government and get to keep $10,800. About 2.7% of Portuguese people own crypto, which adds up to around 276K holders throughout the country.
Austria completes the top ten by extracting $4,125 from crypto investments. Austrian citizens face 27.5% tax rates on their digital asset profits, retaining $10,875 from $15,000 transactions. Austria reports 1.3% crypto ownership among its population, or about 120K people.
“The cryptocurrency tax race mirrors what happened with corporate tax havens decades ago: capital flows to the most favorable jurisdictions,” says Nick Cooke, the CEO at Atmos. “Governments need to recognize that crypto assets are highly mobile, and excessive taxation simply pushes wealth and innovation to more welcoming countries. Countries that can collect reasonable taxes without driving away crypto businesses and investors will likely come out ahead in the digital economy.”
