Crypto taxes in Norway

Professional help for Cryptocurrency

Cryptocurrencies, often referred to as digital or virtual currencies, have experienced a rapid rise in popularity since the launch of Bitcoin in 2009. Today, there are thousands of different cryptocurrencies—such as Ethereum (ETH), Solana (SOL), and many others—operating on decentralized networks. These networks utilize blockchain technology to maintain secure transaction records without the need for a central authority, such as a bank or government.

The appeal of cryptocurrencies lies in their potential for quick and high returns, as well as the promise of offering users greater control over their own funds. However, as with any investment, trading in cryptocurrencies entails risk, and one should be prepared for significant price volatility. Regardless of the perceived novelty, cryptocurrencies are subject to taxation in the same manner as other forms of assets or investments when it comes to Norwegian law.

Overview of Norwegian Cryptocurrency Taxation

Capital Gains Tax Rate at 22%

In Norway, profits (gains) from cryptocurrency trading are treated in the same manner as other capital income. The current capital gains tax rate is 22% on your net profits. This means that if you buy cryptocurrency and later sell it at a higher price, you will pay 22% tax on the profit you have made.

Realization Events and Transactions

Under Norwegian regulations, all cryptocurrency transactions are treated as realizations, even if you merely swap one cryptocurrency for another (for instance, exchanging Bitcoin (BTC) for Ethereum (ETH)). A realization event triggers capital gains or losses, which must be calculated and reported accordingly.

It is important to note that even if you sell cryptocurrency and keep the proceeds within the same exchange platform—without transferring them to your personal bank account or external wallet—you will still have realized any profits (or losses). The Norwegian tax authority considers any sale of cryptocurrency to constitute a realization, and 22% tax applies to the gains made on that sale, irrespective of where the funds end up (exchange, private wallet, or bank account).

Losses and Deductions

If you incur losses from cryptocurrency trades, you are also entitled to a deduction. The deduction rate is 22% of the total loss. For example:

• A loss of 10,000 USD will entitle you to a tax deduction amounting to 2,200 USD (in NOK equivalent).

As with any gains, losses must be recorded in Norwegian kroner (NOK). It is therefore crucial to convert the value of the cryptocurrency into NOK on the date of each transaction to ensure accuracy.

Reporting Requirements

Currency Conversion to NOK

Since Norwegian tax calculations must always be performed using Norwegian kroner, all purchase and sale prices must be converted into NOK at the time of each transaction. This requirement applies to:

• The initial purchase price in foreign currency (e.g., when you bought BTC with USD).

• The selling price or equivalent when you dispose of the cryptocurrency, regardless of whether you receive fiat money or another cryptocurrency in exchange.

Using a consistent and recognized exchange rate for the date of each transaction will help streamline your reporting and minimize discrepancies.

Options for Submitting Information

When you file your Norwegian tax return, you generally have two options for reporting your cryptocurrency transactions:

1. Upload a Summary Report
   Some services and exchanges can generate a consolidated summary report of your crypto trades, gains, and losses. These reports often include the necessary purchase and sale values in NOK. Uploading this summary simplifies your reporting, but you must ensure the information in the summary is accurate and complete.

2. Specify Individual Gains per Cryptocurrency
   Alternatively, you can manually list your specific gains (or losses) for each cryptocurrency (e.g., BTC, ETH, SOL, and so on). This means calculating and reporting the purchase price and selling price (in NOK) for each individual currency separately. You are also responsible for documenting the process of these calculations.

Balances at Year-End

Additionally, Norwegian tax rules require you to disclose your cryptocurrency balance as of December 31 of each year. For the 2025 tax return, for instance, you must provide the balance of all your cryptocurrency holdings as of December 31, 2024. This balance is used to calculate the taxable wealth and must also be reported in Norwegian kroner.

Practical Example

Imagine you buy 0.5 BTC on June 1 for an equivalent of 50,000 NOK. By September 1, the value of that 0.5 BTC has increased, and you sell it for 70,000 NOK. Your profit (gain) is 20,000 NOK, and you are required to pay 22% of 20,000 NOK, which equals 4,400 NOK in capital gains tax.

If, in another transaction, you exchange 0.2 BTC for an equivalent value of Ethereum without converting to fiat currency, you must still calculate the NOK value of that transaction and determine any gain or loss relative to your cost basis for the 0.2 BTC. The gain or loss thus realized must be reported accordingly.

Conclusion and Contact Information

Cryptocurrency investments and trading are becoming increasingly prevalent in Norway. While these assets may offer significant opportunities for profit, they also come with strict tax obligations that all Norwegian residents must observe. You must track every transaction in detail, convert all values to NOK, and ensure gains and losses are reported accurately for each individual realization event.

If you are unsure about any aspects of crypto taxation in Norway or would like professional assistance, feel free to contact our office at [email protected]. You may also book an appointment through our online calendar for a consultation tailored to your individual tax situation.

This article was written by Agnor Pettersen, an economist and tax expert who specializes in cryptocurrency and collaborates with the Norwegian cryptocurrency exchange NBX. For additional support or further clarification on any of the topics discussed, please do not hesitate to reach out.