What to know:
- EU weighs crypto tax to raise new income for its 2028–2034 budget talks.
- A crypto gains levy could raise €1B to €2.4B yearly under Commission estimates.
- Any EU-wide crypto tax needs unanimous support from all 27 states to pass.
The European Union is studying a crypto tax as it seeks new budget income. The proposal appears in an internal European Commission document cited by Politico and could affect cryptocurrency gains, online gambling, and large digital companies across the bloc.
The measure is part of early talks on the EU’s next long-term budget. That spending plan covers 2028 to 2034 and is expected to total €2 trillion. It includes repayments linked to the bloc’s post-pandemic recovery program.
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Crypto Tax Could Raise Up to €2.4B Annually
According to a Politico report, the commission document says a crypto tax on capital gains could raise €1 billion to €2.4 billion each year. That amounts to approximately $1.1 to $2.7 billion. Officials said the estimate remains uncertain.
The Commission noted that crypto revenue is difficult to measure. It pointed to the lack of market data and rapid evolution of digital assets. Those factors make collections more difficult to forecast.
The crypto tax proposal is part of the EU’s “own resources,” which are a number of potential taxes. These are revenue collections made at the EU level. They raise funds for the bloc without having to ask for direct payments from its member states.
Other plans focus on online gambling and giant technology companies. The tax of 3% on the large digital companies could generate approximately €5 billion per year. The tax would raise approximately €1.9 billion a year if introduced at 3% for online gambling operators.
The proposal for a crypto tax would be a hard sell to get approved. Support from all 27 member states of the EU has to be gained for any new tax to be adopted on a European level. The plan would be blocked by an objection from one national government.
EU Tax Proposals Face Approval Hurdles
The digital company levy may meet resistance. If U.S. technology companies are impacted, some countries may be concerned about U.S. retaliation. Member states reliant on online betting may push gambling taxes.
The crypto tax discussion could be a delicate matter. Multiple governments desire greater regulation on digital assets. Others may refrain from taking steps that would take investment or crypto companies beyond the region.
The discussion occurs at a time when the EU continues to roll out its Markets in Crypto-Assets framework. MiCA established a set of common rules for crypto service providers and stablecoin issuers. It has a focus on licensing, market conduct, and consumer protection.
The new crypto tax talks show that policymakers are now looking beyond regulation. As digital asset activity expands throughout Europe, they are questioning if the sector can do its part to support public coffers.
New enforcement actions have sparked discussion. This week, Spain has temporarily banned Polymarket and Kalshi for allegedly failing to obtain the necessary gambling licenses.
Currently, the tax on cryptocurrency is still under consideration. Expect budget negotiations to be more intense in the near future. The final result will be based on member state negotiations, member state revenue requirements, and political opposition throughout the EU.
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