The Finnish Tax Administration (Verohallinto, commonly known as Vero) classifies cryptocurrency as property rather than currency or securities, and has published detailed guidance on the taxation of virtual currencies, available in Finnish and Swedish through the Vero website.
This guidance provides taxpayers with clear rules on how crypto disposals, mining income, staking rewards, and related activities are treated under Finnish tax law.
Capital Gains Tax Rules
Finnish tax law treats cryptocurrency as property, and any disposal constitutes a taxable event giving rise to capital gain or loss.
A disposal includes selling crypto for euros or another fiat currency, exchanging one cryptocurrency for another, using cryptocurrency to pay for goods or services, and gifting cryptocurrency to another party. T
he legal basis for this treatment is found in the Income Tax Act and Vero’s official detailed guidance on virtual currencies.
How CGT is calculated
Gains are calculated as the proceeds received on disposal less the acquisition cost of the cryptocurrency sold. Finland mandates the use of the FIFO method, meaning the earliest acquired units of a given cryptocurrency are treated as disposed of first.
This method must be applied consistently and cannot be varied at the taxpayer’s election. The net gain is added to the taxpayer’s other capital income and taxed at 30% on amounts up to €30,000, and 34% on the portion exceeding €30,000. If total capital income gains in a tax year do not exceed €1,000, no tax is payable on those gains.
Losses realised on crypto disposals can be deducted from capital gains in the same tax year. If losses exceed gains, the excess loss can be offset against other capital income such as rental income or dividends.
Any remaining net capital loss is not directly refundable but results in a capital income deficit, which generates a tax credit of 30% against earned income tax, subject to limits. Losses that cannot be utilised in the year they arise can be carried forward for five years.
Record keeping
Taxpayers are required to maintain records sufficient to calculate gains and losses accurately. This includes the date and price of every acquisition, the date and proceeds of every disposal, and records of any fees paid in connection with transactions.
These records must be retained for six years following the end of the tax year to which they relate, as Vero may request them during an audit or enquiry.
Income Tax Rules
In Finland, not all cryptocurrency receipts are treated as capital gains.
When an individual receives cryptocurrency as payment for employment, freelance work, or professional services, that receipt is treated as earned income and taxed at the recipient’s progressive income tax rate at the time of receipt.
The value is determined by the fair market value of the cryptocurrency in euros on the date of receipt. Subsequent disposal of that cryptocurrency will then give rise to a capital gain or loss calculated by reference to the value at which it was originally treated as income.
Proof-of-Work mining income is classified as earned income under Finnish law and is therefore subject to progressive income tax rates rather than the flat capital income rates.
The progressive scale, including municipal tax, can reach up to 44% for higher earners. This is a notable distinction from many other EU jurisdictions and reflects Vero’s view that PoW mining is an active income-generating activity. Deductible expenses associated with mining, including electricity costs, hardware depreciation, and maintenance, can be claimed against this income.
The classification of mining as earned income means that social insurance contributions may also apply.
Mining and Staking Treatment
Mining
Proof-of-Work mining income is treated as earned income under Finnish tax law, in contrast to the capital income treatment that applies to most crypto disposals.
The market value of the mined cryptocurrency in euros at the time of receipt is the taxable amount, and it is subject to progressive income tax rates that can reach up to 44% when municipal tax is included. This classification applies regardless of the scale of the mining operation; Vero does not draw a material distinction between hobby and commercial mining for the purpose of income classification.
Expenses incurred in the course of mining, such as electricity costs, equipment depreciation, and maintenance, are deductible against the mining income. When mined cryptocurrency is subsequently sold or disposed of, the disposal gives rise to a capital gain or loss calculated by reference to the value at which the crypto was originally taxed as earned income. The acquisition cost for CGT purposes is therefore the fair market value at the time of mining.
Staking
Staking rewards in Finland are treated differently from PoW mining income.
Vero classifies staking rewards as capital income, meaning they are taxed at the 30%/34% capital income rates rather than the progressive earned income rates that apply to mining. This distinction makes staking a more tax-efficient activity for most Finnish taxpayers. As with mining, the taxable amount is the market value of the staking reward in euros at the time of receipt.
When staked cryptocurrency is later disposed of, any gain is calculated with reference to the value at which the staking reward was originally recognised as income. Expenses directly associated with staking activity may be deductible, though taxpayers should seek specific guidance from Vero on the deductibility of particular costs.
As of 2026, Vero has not issued guidance extending specific tax relief beyond the general capital income framework for staking activities.
NFT Taxation
Non-fungible tokens are treated as property under Finnish tax law, consistent with the general classification of cryptocurrency as an asset.
The disposal of an NFT held as an investment is subject to the same capital gains rules as any other crypto asset: gains are taxed as capital income at 30% or 34% depending on the total amount of net capital income in the year, and the €1,000 de minimis threshold applies.
Where an individual creates and sells NFTs as part of a business or commercial activity, the income generated is likely to be classified as business income or earned income rather than capital income, and would be subject to progressive income tax rates accordingly.
The distinction between investment activity and commercial activity follows general Finnish tax principles, with factors such as frequency, scale, and the commercial nature of the activity informing the classification.
So far, Vero has not issued dedicated guidance specifically addressing NFT taxation, and the treatment described above represents the application of general property and income tax rules. Taxpayers involved in significant NFT trading or creation activity should consult a tax adviser to confirm the appropriate classification.
There is currently no specific Finnish VAT treatment for NFTs beyond the general principle that VAT-exempt financial transaction rules do not extend to digital collectibles or utility-bearing tokens
Reporting Requirements
Finnish taxpayers report cryptocurrency gains and income through Vero’s MyTax portal. Capital gains from crypto disposals are reported on the pre-completed tax return under the capital income section.
Taxpayers must input transaction details including acquisition costs and sale proceeds for each disposal, and the system calculates the taxable gain. Mining income classified as earned income is reported separately as other earned income. The tax year runs from 1 January to 31 December, and tax returns are typically filed in spring of the following year.
Taxpayers are required to convert all transaction values into euros at the prevailing exchange rate on the date of each transaction. Vero accepts the use of exchange rates from reputable cryptocurrency exchanges or market data providers, provided the source is applied consistently. Where a taxpayer has a large volume of transactions, the MyTax crypto calculator tool can assist in preparing the required calculations, though taxpayers remain responsible for the accuracy of the data entered.
Vero employs data-matching programmes that cross-reference self-reported income against information from cryptocurrency exchanges and financial institutions operating in Finland. Finland is also a signatory to the OECD’s Crypto-Asset Reporting Framework (CARF), which will require crypto-asset service providers to report transaction data to Vero from 2026 onwards as part of the EU’s DAC8 implementation.
Taxpayers should ensure that their declared crypto income is consistent with the transaction records held by exchanges, as discrepancies are likely to attract scrutiny. Records must be retained for six years.
Penalties
Finland’s tax penalty regime is administered by Vero and is designed to encourage voluntary compliance. Where a taxpayer fails to declare cryptocurrency income, Vero has the authority to raise a tax assessment and charge the outstanding tax with interest. Interest accrues at the late payment rate published annually by Vero, which has typically been set at a few percentage points above the base rate. Interest runs from the date the tax should have been paid.
Administrative penalties for non-disclosure or underreporting can be applied in addition to the outstanding tax. A negligence penalty of up to 30% of the underpaid tax can be imposed where a taxpayer has carelessly failed to declare income.
Where the omission is more serious, or where a taxpayer has actively concealed income, a higher penalty rate applies, and in the most severe cases of deliberate evasion, criminal prosecution for tax fraud is possible under Finnish law.
Vero operates a voluntary disclosure process that allows taxpayers who have previously failed to declare crypto income to correct their returns and pay the outstanding tax.
Voluntary disclosure typically results in reduced penalties and avoids the risk of criminal referral, provided the disclosure is genuinely voluntary and made before Vero has commenced an investigation. Taxpayers who are uncertain about their historical compliance position are strongly encouraged to take advantage of this route.
