Crypto glossary
Capital gains tax on crypto
Capital gains tax on crypto is the tax due on the profit from disposing of crypto, such as selling, swapping or spending it, measured against its cost basis.
Most countries treat crypto as property or an asset rather than currency, so disposing of it can produce a capital gain or loss: the value received minus the cost basis. Disposals usually include selling for fiat, swapping one token for another and paying for goods or services. Simply buying and holding, or moving coins between one's own wallets, is generally not a disposal.
How the gain is taxed depends on the jurisdiction. In the US, gains on assets held more than a year are long-term and taxed at lower rates than short-term gains, which are taxed like ordinary income. In Spain, gains from crypto disposals are ganancias patrimoniales taxed in the savings base of personal income tax (IRPF) at progressive savings rates, regardless of holding period. Some countries, such as Germany, exempt private disposals after a minimum holding period, and others do not tax individuals' crypto gains at all.
Rates, brackets and allowances change frequently, so the official tax agency guidance for the relevant year is the reference.
Example
A Spanish resident sells ETH for 8,000 euros that cost 5,000 three months earlier. The 3,000-euro gain goes in the savings base of her income tax return for that year.