Denmark is considering taxing unrealized gains on crypto assets to minimize the difference in tax treatment between digital assets and traditional asset holders.
The Danish Tax Law Council has released a report proposing a 42% capital gains tax on unrealized profits on digital assets held by Danish citizens.
The proposed legislation, if passed, could be enacted as early as January 2026 and aims to eliminate the unfair treatment of cryptocurrency investors.
The tax regime includes Capital Gains Tax, Inventory tax, and Loss Write-Offs, aligning Denmark's stance on digital asset taxation with other countries like Italy and New Zealand.