Since we can only deduct expenses from the previous two years, long-term investors, the hodlers, who think many years ahead, should use a specific strategy. That means the taxpayer can roll over expenses to the following years, however, to a limited extent. Under the new regulations, your profit is zero, so you pay no tax.Īnother significant relief for investors is that we can deduct expenditures incurred in the previous two years from the bitcoin tax base in Hungary.Under the old rules, you then had to pay tax on the half a million forint profit.So, in the end, your capital remained unchanged. In the other deal, you bought bitcoin for half a million and then sold it for a nice profit, for a million forints.(That’s currently about $2,500.) Then you sold it for half a million forints, so at a heavy loss. In one transaction, you bought bitcoin for one million forints.People could not combine the profits and losses from multiple transactions. However, only within a single transaction. Under the previous unregulated regime, before 2021, we could also deduct the purchase price of cryptocurrencies from our income. Thus, it may end in futile experimenting with fake transactions that differ from the overall market price. However, according to the tax law in Hungary, the basis of the income is the actual fair market value of the crypto asset. Bitcoin And Ethereum Prices Surging in 5 Years. That means the prices of purchasing the crypto assets and some other costs of acquiring them (and thus losses) investors can finally deduct from the tax base. The state levies the new Hungarian bitcoin tax on profits, that is the portion of income that exceeds expenses.
(This is a general, so-called single-rate personal-income tax in this country.) For comparison, there are countries in Europe with zero tax, while in other states, the tax can be as high as 30-45 percent. The Tax Rate on Bitcoin Is Only 15 PercentĪs a private investor, the fundamental rule is to pay a personal income tax of 15 percent on crypto assets purchased for investment. Any time when we exchange cryptocurrency for another cryptocurrency, we do not have to pay tax. These assets can be fiat money, goods, services, or any entitlements or rights. That are any transactions where we exchange cryptocurrency for any other asset. It is important to identify what is subject to the crypto tax in Hungary.
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