European Union considers tax on crypto-assets

It is less than a month until the Irish presidency of the EU Council will present a proposal on new own resources for the Union’s 2028-2034 budget. European sources, consulted by Lusa, indicated that the possibility of creating a European contribution on gains from digital assets, such as Bitcoin or Ether, is viewed with “great interest.”

EU member states have shown interest in the possibility, as the new sector has taxation that does not cover all its activities.

The discussion is “part of a broader debate about the basket of new own resources to finance the EU budget until 2034,” Executive Digest reports.

Next long-term EU budget

The measure will need to be assessed and designed from a technical point of view, with stable rules and a clear estimate of the potential revenue it could generate. The idea would be to apply a tax on the capital gains obtained by individuals or entities from the appreciation of crypto assets, which would revert to the EU budget.

The establishment of new own resources requires unanimity among the member states. Therefore, the final design of the measure will depend on negotiations at the European Council, which will take place during this semester.

António Costa, the President of the European Council, wants to reach an agreement among European leaders this semester, with the agreement then requiring confirmation by members of the European Parliament next year. The objective is for the next long-term EU budget to come into effect on January 1, 2028.