Guide to declaring crypto taxes in Sweden (2021)
Updated: 10 March 2021
This article aims to serve as a complete guide on how to calculate and pay taxes on cryptocurrency (for example Bitcoin and Ethereum) for individuals in Sweden. Whether it’s your first time declaring taxes on cryptocurrencies or you are an experienced crypto evangelist, you should find this guide useful. In this guide we will be covering:
- Important Dates
- How cryptocurrencies are taxed
- Detailed information about different transaction types
- How to submit your tax report to Skatteverket
This guide will be updated and maintained on a regular basis to account for changes made by the local tax authority (Skatteverket) and for new types of transactions. In the eventuality that you find any errors or outdated information, it is greatly appreciated that you let us know by sending an email to firstname.lastname@example.org.
This guide should not be considered as a substitute for tax, legal, audit, accounting, or financial advice. No fiduciary relationship has been created by you and divly.com. We are merely collating and sharing information we find useful. The guide may or may not include incorrect our outdated information.
Important dates 2021
- 16 March 2021 - Online tax portal opens and you can start declaring your taxes.
- 3 May 2021 - Last day to submit your taxes.
How cryptocurrencies are taxed in Sweden
There are potentially three types of taxes that you need to consider every year you declare taxes on your cryptocurrencies. We will discuss all three and how they are applied in this section.
Capital Gains Tax
Cryptocurrencies are treated in accordance with the provisions on “Other Assets” in Chapter 52 of the Income Tax Act (Inkomstskattelagan). This means that any form of sale of Bitcoin or other cryptocurrencies must be reported as a capital gain. We will walk through a long list of detailed scenarios that involve capital gains tax, but in essence, expect to declare and pay capital gains taxes on your cryptocurrencies if you have:
- sold cryptocurrency
- exchanged a cryptocurrency for one or more other types of cryptocurrencies
- exchanged a cryptocurrency for a fiat currency (e.g. USD or SEK)
- Paid with cryptocurrency when buying a product (for example a pair of shoes), a service (for example a taxi ride), or when gambling.
- Lended out cryptocurrency
Calculating capital gains tax: Capital gains tax on crypto is calculated using the Average Cost Basis method (In Swedish: Genomsnittsmetoden). To correctly calculate gains, you need to figure out your cost basis (In Swedish: Omkostnadsbelopp). Price you sold for - cost basis = profit or loss. You pay 30% taxes on the profits you make. If you made a loss, then 70% of the loss can be deducted.
Calculating cost basis (Omkostnadsbelopp): Typically the average price you purchased the crypto in local currency (SEK) will be your cost basis.If you have mined crypto or received crypto as income, the cost basis will be the value of the coins on the day you receive them in local currency (SEK) .It is very important to calculate this right, so if in doubt it is better to use an automation tool like Divly.
Examples: We will provide several examples here soon. In the meantime, Skatteverket provide several examples of different cases on their website.
Submitting capital gains tax: You submit capital gains tax using the K4 form in section D. You can read more about how to submit taxes at the end of this guide.
If you have earned crypto for some form of work or effort then you need to pay typical Income Taxes, just as you would have if you were paid in your local currency. If you decide to keep the cryptocurrency that you received, then you will need to pay capital gains taxes on any profits or losses that are incurred when you sell them. The cost basis in this case would be equivalent to the amount you declared in your income tax return.
Calculating income tax: Simply sum up the income from the different transaction types that contribute to income tax.
Submitting income tax: How to submit income taxes depends on the type of income tax. If its a salary, then you will declare it under Inkomst av Tjänst. If it refers to mining, you need to fill out a T2 form. More information on how to submit income taxes can be found at the end of this guide.
Interest Income Tax
If you have received crypto in the form of loan interest or staking rewards, then you will be subject to interest income tax (In Swedish: Ränteinkomst). Similar to capital gains tax, it is taxed at a rate of 30%. The difference is that losses from interest payments you have made are fully deductible. More info on how this is submitted will be provided soon.
Calculating interest income tax: Simply sum up the income from the different transaction types that contribute to interest income tax.
Submitting interest income tax: This is done by filling in the value in section 7.2 of your declaration. More information is available at the end of this guide.
Detailed information on different transaction types
Certain transactions trigger different the three different types of taxation listed above. Below is a master list for your reference, we will go through each in detail in this guide. Each transaction has an associated tax event and the corresponding label in Divly for those using our service to automate their tax reporting.
|Transaction Type||Tax Event||Divly Label|
|Buy crypto||None||Deposit / Trade|
|Sell crypto||Capital Gains Tax||Withdrawal / Trade|
|Trade crypto for crypto||Capital Gains Tax||Trade|
|Initial coin offering (ICO)||Capital Gains Tax||Trade|
|Purchase goods & services with crypto||Capital Gains Tax||Spending|
|Pay trading fee with crypto||Capital Gains Tax||Included in Trade|
|Pay transfer fee with crypto||Capital Gains Tax||Included in Transfer|
|Transfer crypto between your wallets||None||Transfer|
|Lost or stolen crypto||None||Lost|
|Give crypto as a gift
Receive crypto as a gift
|Reward (e.g. referral)||Income Tax||Reward|
|Income from other activites (e.g. freelancing, salary)||Income Tax||Other Income|
|Lend out crypto
Loan paid back
Loan interest received
Loan interest paid
|Capital Gains Tax
Interest Income Tax
|Capital Gains Tax
Interest Income Tax
|Margin trading||Capital Gains Tax||Realized Profit/Loss|
|Futures / derivatives trading||Capital Gains Tax||Realized Profit/Loss|
Buy Crypto / Buy Crypto with Fiat
There are no taxes involved when buying crypto. However, you need to ensure that you keep track of the price you paid for it to be added to your average cost basis (in swedish this is called “omkostnadsbelopp”). If you purchased the crypto in a foreign currency (e.g. USD or EUR) make sure to convert it to the value in local currency on that day.
Sell Crypto / Sell Crypto for Fiat
Selling cryptocurrency will always require you to declare capital gains tax whether it's at a profit or loss. Once again, it's important to calculate the selling price in local currency at the time of sale.
Trade Crypto for Crypto
In Sweden trading crypto for crypto is a capital gains tax event. You must pay capital gains on the cryptocurrency you sold. The value is based on the cryptocurrency that you sold it for, in your local currency. For example, if you sold 1 Bitcoin for 10 Ethereum, then the selling price is the value of 10 ETH in swedish crowns.
Finally, you need to account for the cost basis of your Ethereum that you purchased. This is the same as the value above, 10 ETH in swedish crowns on the day of the trade.
Initial Coin Offering (ICO)
An ICO is when you invest your crypto (usually Ethereum) in a new project that in turn provides you a token that represents that project. In a taxation point of view, it functions the same as a crypto to crypto trade. Essentially, you send cryptocurrency in exchange for a token from a new project. You follow the same principle where you sell your crypto for the value of the ICO token in local currency. Capital gains tax is applied to the crypto you sent, and a cost basis is added to the new token at the same price.
Purchase Goods & Services with Crypto
When you purchase a good (e.g. new computer, amazon gift card) or pay for a service online (e.g.VPN service), then you must pay capital gains tax on the crypto you spent. This works the same as selling crypto for fiat, the selling price is what the same good or service costs in your local currency.
Pay Trading Fees / Transfer Fees in Crypto
On some exchanges, typically when you trade crypto for crypto, the trading fee will be paid in crypto. In these cases you need to convert the crypto you paid for the trading fee into your local currency and then pay capital gains on it. This can become quite tedious if you have many trades.
Similarly, if you transfer crypto between your own wallets and pay network fees, these fees are seen as paying for a service and create a capital gains tax event.
Transfer Crypto Between Your Own Wallets
Transfering crypto between your own wallets is not a taxable event (this includes sending crypto to your account on an exchange). It is important that you track these transfers properly so you don't pay unnecessary taxes!
Lost or Stolen Crypto
You do not need to pay taxes on lost or stolen crypto. However, take not that you can’t offset lost or stolen crypto against your profits. You simply remove the relevant cost basis from your calculations.
Give Crypto as a Gift / Receive Crypto as a Gift
Gifting or inheriting in Sweden is tax free. You are free to give away crypto without needing to pay any taxes. Similar to lost or stolen crypto, you can't deduct gifted crypto from your profits.
If you received crypto as a gift you don’t need to pay taxes on it until you sell it. If possible, ask for the purchase receipt from the one who gifted you the crypto. You may use the price they paid as your cost basis, this means you pay less taxes when you finally sell it.
Donating crypto is the same as giving a gift and is tax free in Sweden. In some countries donations are tax deductible, in Sweden they are not.
An airdrop is considered as a gift from the token holder or blockchain. You only pay taxes when you sell it. The cost basis in this case should be set to zero.
A hard fork is considered as a gift from the new blockchain fork. You only pay taxes when you sell it. The cost basis in this case should be set to zero.
If you are mining as an individual then the proceeds are classified as income from a hobby (InSwedish: Inkomst av Tjanst (hobby)). Hence, you are required to declare and pay Income Tax on mining proceeds. This is calculated as the value of the proceeds in local currency on the day you mined them. The cost basis of the newly minted coins are equal to the amount you declared in income. Once you sell the crypto in the future, you need to pay regular capital gains taxes.
Lend Your Crypto
Lending cryptocurrency in Sweden is considered to enact a capital gains tax event. When the loan is repaid you calculate a new cost basis for the coins on the repayment date.
These tax rules make lending of cryptocurrency quite complex to account for in Sweden. Every time you lend your crypto you can think of it as selling your crypto. Once you are repaid the principle amount, you are effectively buying back the crypto again.
When receiving loan interest payments, they are subject to Interest Income Taxes. If the interest is paid in cryptocurrency, ensure to record the cost basis to avoid paying excessive capital gains tax in the future.
If you have taken a crypto loan and paid interest, this can be deducted by 100% from the interest profits you have made.
Staking crypto is considered to follow the same practice as staking is synonymous with lending according to Skatteverket. If you stake crypto, you are lending your crypto to the protocol to verify transactions and hence get compensated with staking rewards.
Every time you stake your crypto you can think of it as selling your crypto. Once you are repaid the principle amount, you are effectively buying back the crypto again.
Staking rewards are considered to be synonymous with interest payments and therefore are subject to Interest Income Taxes. You must declare the value of your staking rewards in section 7.2 of the declaration. Staking rewards are typically paid in the cryptocurrency associated with the blockchain you are staking towards. The cryptocurrency you receive will have a cost basis equal to the amount in local currency that you declare in section 7.2. If you keep the crypto and sell it at a later date, normal capital gains taxes apply.
Rewards (e.g. referral)
Airdrops and other rewards are not subject to Income Tax unless you have performed some form of work to receive the benefits.If in any case you have received a reward from referring a friend, sharing a post, or any other required action, then you need to declare the reward as Income Tax. The cost basis of the cryptocurrency is the same amount as you declared in your Income Tax.
Income From Other Activities (e.g. freelancing, salary)
If you have been paid in cryptocurrency for your work or a favor you completed, then that needs to be declared as Income Tax. The cost basis of the crypto you received is the same value you declared as income.
Margin trading involves borrowing to take leveraged positions on crypto. Often the outcome of the trades are provided as realized profit or loss after margin fees are accounted for. In these cases the realized profit or loss is applied as capital gains tax once the position is closed. If you realized a profit, the cost basis of the profit is applied after you have paid the capital gains taxes. If you realized a loss, it works the same as if you sold the coins for 0 SEK, the loss is equal to the average cost basis of the coins.
How to submit your tax report to Skatteverket
Once all the tax calculations are done and Skatteverkets tax portal is open, its time to declare your taxes before the deadline in May. You can submit your taxes online or by mail. We will primarily focus on the online portal in this guide.
Submitting Capital Gains Tax
To declare your capital gains taxes, you need to fill in section D of the K4 form. There are three ways you can do this:
- Manually fill in the K4 form on Skatteverkets online portal.
- Upload SRU files to the online portal to fill in the K4 form automatically.
- Fill in the K4 PDF version, print it out and mail it to Skatteverket.
If you have used Divly to calculate your taxes, you will have the option to download a CSV file on the Tax Reports page. This CSV file contains the exact information needed to fill in the online K4 form. These are the steps you need to take on the online portal if you are using the first method:
- Log in to Skatteverkets online portal with BankID.
- Navigate to submitting_capitalgains_2
- Fill in the values for each currency (if you used Divly it will be provided in the downloadable CSV). You can only use whole numbers when filling in Antal/Belopp i utländsk valuta. Make sure to report profits and losses on seperate lines for the same crypto since losses are only 70% deductible.
- Click Spara at the bottom once done.
- Finally you need to provide the exact amount of crypto sold in decimals. To do this, navigate to Ändra in the top menu. On the page in the dropdown choose 17. Övriga upplysningar. Provide the exact amount of each crypto you sold in the text box.
You are done! Skatteverket will calculate the taxes based off the information you provided.
Submitting Income Tax
How to submit your income tax depends on the type of income you received (salary, mining etc).
Mining: (Divly label: mining) If you have received a surplus income from mining, then you need to fill out a T2 form. You can find this form in the online portal by navigating to Bilagor > Inkomst av hobby, internetinkomster m.m. (T2). Make sure you only declare mining if you made a profit after the expenses of your mining hardware etc have been deducted! The expenses can be used to deduct mining income for several years.
Salary and other benefits: (Divly labels: Other Income, Rewards) If you have received an income for such as a salary, then you need to delcare this as Inkomst av Tjänst. Navigate to Ändra and choose the appropriate field in the dropdown. Update the value in the chosen section so it includes the income you received in crypto.
Submitting Interest Income Tax (Ränteinkomst)
To declare your interest income, you need to add the total sum to section 7.2. You will need to do this if you have received crypto from loan interest or staking rewards (Divly label: Interest Payment).
- Navigate to Ändra and in the dropdown select 7.2 Ränteinkomster, utdelningar m.m.
- Fill in the new total sum of interest to include the crypto interest income.
- Click on Spara.
- Go back to the previous page Ändra.
- This time choose 17. Övriga upplysningar and describe the nature of the interest (staking reward, loan interest etc).