Cryptocurrency taxes in Luxembourg 2026: when your crypto gains are tax-free

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You hold Bitcoin, Ether or other tokens and you live in Luxembourg, or you are about to move there. This guide shows when a sale is tax-free and what you pay when it isn't. It also covers swaps, mining, staking and the new DAC8 reporting.

Luxembourg cryptocurrency taxes in 2026: the key figures

What changed for 2026

• DAC8 is now Luxembourg law. The law of 27 March 2026 transposes Directive (EU) 2023/2226, and a grand-ducal regulation of 18 May 2026 sets how crypto-asset service providers register with and report to the ACD (ACD 2026 legislation list).
• The crypto tax rules did not change. For movable assets such as crypto, the six-month rule and the EUR 500 threshold stay as before, and the income tax scale is still the one in force since 1 January 2025.

Is this guide for you?

Read on if you…

• are a Luxembourg tax resident holding crypto on an exchange or in a self-custody wallet;
• are moving to Luxembourg with an existing portfolio and want to time your sales;
• mine, stake or get paid in crypto as a freelancer or founder.

Probably not your case if you…

• hold crypto through a Luxembourg company (corporate income tax applies, see our guide to legal forms of business in Luxembourg);
• only own crypto ETPs or funds in a securities account (they follow the rules for securities).

How does Luxembourg tax crypto for private investors?

The starting point is the tax authority's (Administration des contributions directes, ACD) circular on virtual currencies of 26 July 2018. It says crypto is not a currency. For income tax, business tax and net wealth tax, it is an intangible asset.

That matters because Luxembourg only taxes income that fits one of the categories in art. 10 L.I.R. For a private investor, the relevant category is miscellaneous income (art. 99 L.I.R.), and inside it, the speculative gain of art. 99bis.

Held more than six months: outside the speculative-gain rule

Art. 99bis L.I.R. treats a movable asset as "recently acquired" when no more than six months pass between purchase and sale, the ACD's miscellaneous income page confirms. Sell later than that, and there is no speculative gain to tax. That's true whatever the amount, as long as you manage private wealth rather than run a business.

Held six months or less: a speculative gain

The gain is the sale price minus the purchase price and acquisition costs. It is added to your other income and taxed at the progressive scale. For 2026 that scale tops out at 42% above EUR 234,870 of taxable income (ACD tax scale).

On top comes the employment fund surcharge (contribution au fonds pour l'emploi) of 7%. It rises to 9% above EUR 150,000 of adjusted taxable income in classes 1 and 1a, or EUR 300,000 in class 2 (ACD surcharge page). So the top marginal rate is 42% × 1.09 = 45.78%.

Good news: if your total speculative gains for the calendar year are below EUR 500, none of them is taxed. Here's the catch: it is a threshold, not an allowance. At EUR 500 or more, the whole amount is taxable.

Losses

Speculative losses can be offset against gains of the same year. They cannot be set against salary, business or other categories of income, and they cannot be carried forward to later years, as Guichet.lu explains for private disposals.

How are swaps, payments, mining and staking taxed?

Crypto-to-crypto swaps and paying with crypto

Art. 102 (1a) L.I.R. treats any exchange of assets as a sale of what you give, followed by a purchase of what you get. The ACD circular applies this to crypto swaps and to paying for goods or services in crypto.

In practice:

1. Each swap is a disposal of the coin you give up, at its estimated realisation value.
2. If you held that coin six months or less, the swap can create a speculative gain.
3. The six-month clock starts again for the coin you receive.

Which coins did you sell? Cost basis rules

You carry the burden of proof for the holding period, under art. 171 AO (General Tax Law), the circular says. Keep purchase dates and costs. If you can't identify the exact units sold, the ACD requires the weighted average price. FIFO and LIFO are excluded.

Mining and running a crypto business

Mining, operating an online exchange or running a crypto ATM normally meets the test for a commercial business under art. 14 L.I.R., according to the circular. Then all profits are taxable, whatever the holding period, and municipal business tax can apply.

For trading, the ACD looks at indicators such as:

• premises or an organisation dedicated to crypto operations;
• use of borrowed money;
• frequent turnover of your holdings;
• trading on behalf of third parties.

Mining that does not reach business level is taxed as miscellaneous income under art. 99 n° 3 L.I.R., the circular says. Such service income is not taxable below EUR 500 a year.

Staking rewards

Neither the law nor the circular has a dedicated staking rule. The closest analogy is occasional mining, taxed under art. 99 n° 3 at market value when received. Large-scale or professional staking points to business income. Until the ACD publishes guidance, document your method and stay consistent.

Getting paid in crypto

Paying in crypto does not change the nature of income, the circular says. A salary paid in Bitcoin is still salary; freelance fees in USDC are still business or professional income. You convert receipts at the exchange rate of the day the crypto becomes available to you, and expenses at the rate of the day you pay.

What changes for residents, non-residents and people moving?

Two practical points. First, your old country may tax a sale made before you become a Luxembourg resident, so check its exit rules too. Second, if you plan to leave, read our guide on ceasing your Luxembourg tax residency. The first step is to confirm you really are resident, see Luxembourg tax residency rules.

Comparing destinations? Malta and Austria take very different approaches; see crypto taxation in Malta and crypto taxes in Austria.

Do Luxembourg exchanges report your crypto to the tax office?

From 2026, yes. DAC8 applies from 1 January 2026, and the first exchange of data for 2026 takes place by 30 September 2027, according to the European Commission's DAC8 page.

Reporting crypto-asset service providers collect your tax residence and report, per crypto-asset, the aggregate amounts paid or received for your acquisitions and disposals, plus the market value of transfers. Luxembourg's law of 27 March 2026 makes this binding. A grand-ducal regulation of 18 May 2026 sets how providers register with and report to the ACD. Expect the tax office to match platform data against your return.

Common mistakes (and what they cost)

• Selling a few days before the six-month mark → a tax-free gain becomes a speculative gain taxed at up to 45.78%.
• Ignoring swaps → each swap is a disposal under art. 102 (1a) L.I.R.; undeclared short-term swaps lead to back tax and late-payment interest.
• Treating EUR 500 as an allowance → at EUR 500 or more of speculative gains, the full amount is taxed, not just the excess.
• Using FIFO because your app does → the ACD expects weighted average cost when units can't be identified, so your gain may be recalculated.
• No records of purchase dates → you carry the burden of proof, so the ACD can treat a gain as short-term.

Frequently asked questions

Is crypto tax-free in Luxembourg?

For a private investor, a sale more than six months after purchase is not taxed in 2026, because it falls outside the speculative-gain rule of art. 99bis L.I.R. Sales within six months are taxed at progressive rates up to 45.78%, unless total speculative gains for the year are below EUR 500. Mining and professional trading are business income, taxed whatever the holding period.

Do I pay tax when I swap one crypto for another in Luxembourg?

Possibly. Art. 102 (1a) L.I.R., as applied by the ACD's 2018 circular, treats a swap as selling the coin you give and buying the coin you receive. If you held the coin you give for six months or less, the swap can create a taxable speculative gain. If you held it longer, a private investor pays nothing. The six-month clock restarts for the new coin.

How is crypto staking taxed in Luxembourg?

There is no dedicated rule, and the ACD's 2018 circular does not mention staking. It taxes occasional mining as miscellaneous income under art. 99 n° 3 L.I.R., and staking rewards most closely resemble that. Service income of that kind is tax-free below EUR 500 a year. If you stake at scale with an organised set-up, business income is the more likely outcome. A later sale of rewarded coins follows the six-month rule.

Can I offset crypto losses in Luxembourg?

Only within narrow limits. Short-term crypto losses can offset gains of the same year, but not your salary or business income, and they cannot be carried forward. Losses on coins held more than six months are outside the tax system, just like the gains. Keep records of both so the ACD can follow your netting.

Do I pay Luxembourg tax on crypto after I leave the country?

Generally not on private gains. Non-residents are taxed in Luxembourg only on the Luxembourg-source income listed in art. 156 L.I.R., and private crypto gains are generally outside it. Unrealised gains are not taxed on departure because the speculative-gain rule needs a disposal. Your new country taxes you from the day you become resident there.

Which cost method should I use for crypto in Luxembourg?

Identify the exact units sold where you can. If that's difficult or impossible, the ACD's 2018 circular requires the weighted average price and excludes FIFO and LIFO. Keep exchange exports and wallet records, because you must prove both the cost and the holding period of every coin you sell.

Related guides

• Capital gains tax in Luxembourg: shares, property and funds
• Luxembourg tax residency rules
• Legal forms of business in Luxembourg
• Tax fraud regulations and penalties in Luxembourg
• Luxembourg tax landscape overview
• Crypto taxes in Austria
• All country tax guides

Sources

• Circular L.I.R. n° 14/5 – 99/3 – 99bis/3 on virtual currencies – Administration des contributions directes
• Revenus nets divers (miscellaneous income) – Administration des contributions directes
• Buying and selling shares (gains and losses) – Guichet.lu
• Tax scale for individuals – Administration des contributions directes
• Employment fund surcharge – Administration des contributions directes
• Législation 2026 (DAC8 law and regulation) – Administration des contributions directes
• DAC8 – European Commission, DG TAXUD

This guide is general information, not personalised tax advice. See how we research and review.