What is a Bitcoin capital gain?
A capital gain arises when you sell, swap or spend Bitcoin at a higher value than the price at which you acquired it.
The difference, sale price minus acquisition cost, is taxable capital income in Finland.
A simple formula for Bitcoin capital gains
Besides the purchase price, the acquisition cost includes costs directly related to it, such as trading fees.
Instead of the actual acquisition cost, you can always use the deemed acquisition cost if it is more favourable to you or the purchase price cannot be shown (Finnish Tax Administration).
Illustrative example
| Step | Amount |
|---|---|
| Bought 0.1 BTC for | €3,000 |
| Sold 0.1 BTC for | €5,000 |
| Capital gain | €2,000 |
The example is illustrative, not real price history.
A real example: selling 5 ETH for euros
This example is based on the editorial team's own Revolut receipt for selling 5 ETH for euros (see the receipt, in Finnish).
The sale price was €1,709.37 per ETH, so the total disposal price was €8,546.85.
Revolut charged a fee of €69.88 for the sale, about 0.8%, leaving €8,477 in the account.
For tax purposes the sale is treated on the same principle as selling Bitcoin, because Ethereum is a crypto-asset in the Tax Administration's guidance just like Bitcoin (Taxation of crypto-assets, in Finnish).
Using the actual acquisition cost, the gain is €8,546.85 minus the purchase price of the ETH and the €69.88 sale fee.
Using the deemed acquisition cost (20% when held for less than 10 years), the deduction is €1,709.37 and the taxable gain €6,837.48.
When the deemed acquisition cost is used, the sale fee cannot be deducted separately, so it is worth calculating which method is more favourable.
Save the receipt straight away, because it contains everything you need for reporting: amount, price, fee and time.
In what order are Bitcoin purchase lots counted?
If you have bought Bitcoin in several lots at different prices and sell only part of your holding, it matters which lot is considered sold.
In Finland the FIFO principle (first in, first out) generally applies: the oldest lot acquired is considered sold first, unless shown otherwise.
This matters especially when your purchase prices have varied significantly between purchases, because FIFO affects how large the capital gain or loss on an individual sale turns out to be.
The deemed acquisition cost in more detail
The deemed acquisition cost is 20% of the sale price when the holding period is less than 10 years, and 40% when it is at least 10 years (Tax Administration guidance, in Finnish).
You can always choose it when it is more favourable, and it is the only option, for example, when purchase receipts have been lost.
The deemed cost pays off when it is larger than the actual purchase price and fees combined, because no other costs can be deducted when it is used.
If a trade ends in a loss rather than a gain, see the guide to deducting Bitcoin losses in Finland. To try both methods with your own numbers, use the Bitcoin tax calculator.
Bitcoin capital gains: frequently asked questions
Do I have to calculate every single sale separately?
Yes. As a rule, the capital gain or loss is calculated separately for each disposal.
What does the deemed acquisition cost mean?
It is an alternative way to calculate the acquisition cost: 20% of the sale price, or 40% if the asset has been held for at least 10 years. You can choose it whenever it is more favourable than the actual acquisition cost or the purchase price cannot be shown.
Does the holding period affect Bitcoin capital gains tax in Finland?
The holding period can affect the size of the deemed acquisition cost, but the tax rate on the capital gain itself does not depend on how long you held the Bitcoin. Check current rates with the Tax Administration.
This content is general information, not personal tax advice. Check the current guidance from the Finnish Tax Administration.