Interest in trading crypto coins like Bitcoin has also increased significantly in Sweden, and several trading platforms offer an easy way to deposit money and trade the most popular cryptocurrencies.
The Donald Trump effect on cryptocurrencies
When it became clear that Donald Trump won the presidential election in November, cryptocurrencies experienced a sharp reaction upwards. This is because Donald Trump has signaled that he wants to see softer legislation on cryptocurrencies, create a cryptocurrency reserve, and make USA the base for the global cryptocurrency industry.
Reporting tax on trading with cryptocurrencies
According to Swedish Tax Authority (Skatteverket) when you trade cryptocurrencies, i.e., both buy and sell, you need to pay taxes on your profits. Like with other securities, you need to pay taxes on profits from cryptocurrencies at 30% of the profit. A loss is deductible at 70%. You also need to have sold the asset within the income declaration period to count as a loss or profit.
Exceptions for tax deductions
There are certain exceptions that apply when you incur a loss on the value of your cryptocurrencies. You cannot report a loss when:
- You have lost the keys to your wallet holding the cryptocurrency and can no longer access the currency.
- The platform where you have your cryptocurrencies has been hacked and you no longer have the cryptocurrencies.
Tax on Cryptocurrency Certificates
There are listed certificates with cryptocurrencies as underlying assets. These can be traded within, for example, an ISK (Investeringssparkonto), and then the usual ISK tax rules apply. Keep in mind that these certificates have a management fee similar to the fees charged by fund managers, and there is always a very high risk with these certificates where you can lose the entire amount you have invested.
Very high risk with cryptocurrency trading
It should be added that trading with cryptocurrencies involves a high risk due to their high volatility in price movements compared to, for example, stocks.
