As of January 1, 2026, Europeans will face new tax reporting obligations under the EU’s Directive on Administrative Cooperation (DAC8), adding another layer to the regulatory framework already shaped by the Markets in Crypto Assets (MiCA) legislation. While the new rules strengthen transparency, they do not fundamentally rewrite how crypto-assets are taxed at the national level.

With the next tax season approaching, many crypto holders across Europe are preparing for closer scrutiny. In most jurisdictions, crypto is still treated neither as money nor as legal currency, but rather as property or a capital asset. Taxation therefore depends on how crypto is used — whether it is held, traded, staked, or earned as income.

From 2026, crypto service providers — including exchanges and brokers — will be required to report user identities and transaction data to national tax authorities. This information will then be shared automatically between EU member states. Providers have until July 1, 2026, to comply. But what does this mean in practice for Europe’s largest economies?

Germany: Stability for long-term holders

Germany remains one of the most favorable jurisdictions for long-term crypto investors. Private crypto holdings sold after more than one year are fully tax-free. A proposal to extend the holding period to ten years for staking and lending income was officially abandoned and confirmed again in March 2025.

From January 2026, the DAC8 directive changes little for individual taxpayers. The main impact falls on service providers — including non-EU platforms serving German clients — which will be obliged to automatically report user data and transactions to German tax authorities.

France: Flat rates with tighter oversight

France applies a relatively simple framework. Non-professional capital gains from crypto disposals are taxed at a flat 30% rate, combining income tax and social contributions. Professional gains, linked to business activity, are taxed either under corporate tax or progressive income tax rates.

From 2026, France will further tighten its crypto accounting and compliance rules for CASPs in line with MiCA. Implementation of DAC8 reporting obligations is expected later in 2026, reinforcing oversight rather than altering tax rates themselves.

Spain: High scrutiny and strict reporting

Spain continues to take one of the toughest approaches in Europe. Residents must already declare foreign crypto holdings exceeding €50,000. Capital gains are taxed progressively, while income from staking, mining, or airdrops is subject to standard income tax rates that can reach 47%.

From January 1, 2026, DAC8 will fully reinforce these obligations, making cross-border holdings harder to conceal and significantly increasing transparency.

Sources:

https://www.cryptopolitan.com/crypto-tax-havens-in-europe/

https://www.cryptopolitan.com/global-crypto-tax-guide-2026/