Do I have to pay tax on cryptocurrency gains?
Yes, if you sold the cryptocurrency at a gain within two years of buying it. Earnings from trading cryptocurrency in Croatia are capital income (a capital gain) and are taxed at 12 percent on the difference between the sale and purchase price, less transaction costs. The key rule is two years: if you held the cryptocurrency for more than two years before cashing it out, the gain is not taxable. The Tax Administration applies the FIFO method (first in, first out), and you report the tax yourself on the JOPPD form by the end of February for the previous year. The myth that the rate is still 10 percent plus surtax no longer holds - the surtax was abolished in 2024 and the rate on a capital gain is 12 percent. You do not pay tax on the amount you invested, only on the gain you actually realised.
📋 The rules
- Earnings from cryptocurrency are capital income and are taxed at 12 percent on the realised gain (sale price minus purchase price).
- If you held the cryptocurrency for more than two years before cashing out, the capital gain is not taxable.
- The Tax Administration uses the FIFO method - the units you bought first are treated as the ones sold first.
- You report the tax yourself on the JOPPD form by the end of February for the previous year.
- Losses on the sale of crypto assets reduce gains made in the same year; if you are in a net loss, there is no tax.
🔓 Exceptions
- Cryptocurrency held for more than two years is sold without capital gains tax.
- Swapping one cryptocurrency for another is generally not a taxable event until you cash the gain out into ordinary currency or goods.
- If trading is so frequent and organised that it becomes a business activity, it is taxed as self-employment, not as a capital gain.
⚠️ Penalties & fines
Nobody calculates the capital gains tax on cryptocurrency for you - the duty to report is on you, and a missed report is a tax offence. If the Tax Administration later finds an unreported gain, it will charge the tax due, default interest and a fine, and the burden of proving the purchase price and date falls on the taxpayer. That is why it is essential to keep a record of every transaction from exchanges and wallets. If your trading is frequent and organised, the Tax Administration can reclassify it as a self-employed activity with a much heavier tax burden and contributions. On top of that, under European data-exchange rules crypto exchanges increasingly report customer data to tax authorities, so an unreported gain is more easily discovered.
📎 Official sources
- Tax Administration - taxation of capital income →
- Tax Administration - opinion on taxation of cryptocurrencies →
- Zakon.hr - Income Tax Act (Zakon o porezu na dohodak) →
❓ Frequently asked
Do I pay tax if I have not sold my crypto?
No. While you only hold the cryptocurrency there is no tax, because the gain has not yet been realised; the tax liability arises only when you sell it or exchange it for goods and services at a gain. So unrealised growth in value in your wallet does not by itself create tax.
How is the gain from cryptocurrency calculated?
The gain is the difference between the sale and purchase price, less transaction costs, and the Tax Administration applies the FIFO method. That means the cryptocurrencies you bought first are treated as sold first, so the order of your purchases directly affects the amount of tax.
Does the 10 percent rate still apply?
No. After the tax reform from 2024 the surtax was abolished and the rate on capital income, including gains from cryptocurrency, is 12 percent. Figures that still mention 10 percent plus surtax are out of date and do not match the rules in force.
By when must I report crypto tax?
You report the capital gains tax yourself on the JOPPD form by the end of February for the previous calendar year. If you do not report on time, you expose yourself to default interest and a misdemeanour fine set by the Tax Administration.
Is swapping one crypto for another taxed?
Generally no - while you exchange one cryptocurrency for another the gain is not cashed out, so there is no taxable event. Tax arises when you convert the crypto asset into ordinary currency or use it to buy goods and services at a realised gain.
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