Union

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<ul>
 <li>EU lawmakers are considering a crypto capital gains levy to help fund the bloc’s planned €2 trillion 2028–2034 budget.</li>
 <li>The proposal still needs approval from all EU member states, while Berlin and Paris reportedly support taxing crypto profits.</li>
</ul>
The European Union is weighing a new levy on crypto capital gains as lawmakers search for fresh revenue for the bloc’s next long-term budget. The proposal forms part of the European Parliament’s negotiating position for the 2028–2034 Multiannual Financial Framework, which would help fund spending of almost €2 trillion.
MEPs adopted the interim budget report on Tuesday by 370 votes to 201, with 84 abstentions. The plan calls for new EU income sources instead of higher national contributions from member states. These sources include levies tied to digital services, online gambling, carbon border rules, and capital gains from crypto assets.
The crypto proposal comes as Brussels prepares its next seven-year budget cycle. The European Commission has already presented a long-term spending plan worth almost €2 trillion for 2028 to 2034. Parliament wants stronger revenue tools to support that plan while managing repayment costs tied to earlier recovery borrowing.
The Parliament’s text refers to a levy based on a uniform rate applied to capital gains from crypto assets. The measure remains at an early stage and needs more legal detail before it can move forward. It also raises questions about whether the EU levy would sit on top of national tax rules already applied in each member state.
However, the proposal does not create an immediate tax. Any EU-level revenue measure still needs approval from national governments. For tax-related measures, that process can require unanimous support in the Council, followed by national-level steps. One government could therefore block or delay the plan.
<h3 id="b-berlin-and-paris-signal-support-b">Berlin and Paris Signal Support</h3>
Reports from Germany say Berlin and Paris support the idea of a new tax on profits from crypto trading. That gives the proposal more political weight because Germany and France remain central players in EU budget negotiations.&nbsp;
The measure also arrives during a wider debate over who should pay for the EU’s long-term priorities. Lawmakers want new revenue without increasing direct national contributions. Crypto gains now sit beside digital services and online gambling as possible targets for fresh EU income.
Germany is already reviewing its own crypto tax rules. The government has <a href="https://www.ethnews.com/germany-to-end-bitcoin-holding-period-tax-exemption/" rel="noopener noreferrer nofollow">considered</a> ending the long-standing exemption that allows investors to sell crypto tax-free after holding it for more than one year.
<h3 id="b-european-investors-face-unclear-tax-outlook-b">European Investors Face Unclear Tax Outlook</h3>
Crypto holders across the EU still lack a clear view of how the proposed levy would work. The text does not yet define the rate, reporting process, collection method, or treatment of losses. It also does not clarify whether long-term holders would receive different treatment from active traders.
That uncertainty matters for countries with more favorable crypto tax rules. Germany has long <a href="https://www.ethnews.com/countries-with-0-bitcoin-and-crypto-tax-in-2026/" rel="noopener noreferrer nofollow">allowed tax-free</a> sales after a one-year holding period. Portugal and the Czech Republic also have structures that favor long-term holders. An EU-wide levy could narrow those national differences if lawmakers apply it broadly.
However, the proposal remains tied to budget negotiations. It may change during talks between Parliament, the Commission, and member states. The final package could also drop the crypto levy if governments reject it or agree on other revenue sources.
The tax debate is unfolding while EU capitals also question Brussels’ push for stronger central supervision of crypto firms. A Cypriot presidency note says member states have <a href="https://www.euractiv.com/news/eu-capitals-to-water-down-push-to-supervise-crypto-firms/" rel="noopener noreferrer nofollow">raised</a> concerns over a Commission plan to place all crypto-asset service providers under direct ESMA supervision.&nbsp;
That dispute shows how difficult EU-wide crypto policy remains. Larger economies have backed deeper market integration in some areas, but smaller member states continue to defend national oversight. <a href="https://www.ethnews.com/irs-proposed-making-crypto-tax-forms-digital-only/" rel="noopener noreferrer nofollow">Crypto taxation </a>may face a similar test, especially if governments see it as a loss of control over domestic tax policy.
The post <a href="https://www.ethnews.com/eu-wide-bitcoin-tax-moves-closer-as-brussels-weighs-crypto-gains-levy/" rel="noopener noreferrer nofollow">EU-Wide Bitcoin Tax Moves Closer as Brussels Weighs Crypto Gains Levy</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

EU-Wide Bitcoin Tax Moves Closer as Brussels Weighs Crypto Gains Levy

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