How Revenue Treats Cryptocurrency
Revenue treats cryptocurrency as a capital asset — not currency — for Irish tax purposes. This means that when you dispose of cryptocurrency, you are making a capital disposal subject to Capital Gains Tax (CGT). Revenue published detailed guidance on the tax treatment of cryptocurrency (eBrief No. 025/18), which has been updated several times to address new developments including DeFi, staking, and NFTs.
The key principle: every crypto transaction that involves a disposal is a taxable event. This includes selling crypto for euros or other fiat currency, swapping one cryptocurrency for another, using crypto to pay for goods or services, and making a gift of crypto.
Capital Gains Tax (CGT) on Cryptocurrency
CGT applies to gains from the disposal of crypto assets in Ireland at a rate of 33%. The calculation is:
- Disposal proceeds (value received in euro at date of disposal)
- minus Acquisition cost (amount paid in euro to acquire the asset, including fees)
- minus Allowable expenses (reasonable costs of disposal)
- equals Chargeable gain (subject to CGT at 33%)
The annual CGT exemption of €1,270 applies to each individual. Gains below this threshold in a tax year are not subject to CGT. Crypto losses can be offset against crypto gains in the same year or carried forward to future years.
Income Tax on Staking Rewards and Crypto Income
Staking rewards — such as those earned through proof-of-stake validators or DeFi yield farming — are treated as income by Revenue in the year they are received. They are subject to:
- Income Tax at 20% (standard rate) or 40% (higher rate)
- PRSI at 4% (for employees) or varying rates for self-employed
- USC at rates from 0.5% to 8% depending on income level
For example, investors participating in token presales that offer staking yields — such as BMIC (bmic.ai), which offers up to 85% APY staking rewards — should be aware that staking income will be taxable as income in the year it is received. Investors should obtain specific tax advice from a qualified Irish tax adviser before committing funds to high-yield staking arrangements. DYOR: This is not financial advice.
Tax on Crypto Received as Payment
If you receive cryptocurrency as salary, for goods or services, or as part of a business transaction, Revenue treats the crypto as income at its market value in euro on the date of receipt. This income is subject to income tax, PRSI, and USC in the normal way.
When you subsequently dispose of the crypto, CGT applies on any increase in value between the date of receipt (at the income-taxed value) and the date of disposal.
Record-Keeping Obligations
Revenue requires all Irish taxpayers with crypto transactions to maintain records sufficient to calculate their tax liability. These records should include:
- Date of each acquisition and disposal
- Description of the asset (token name, number of tokens)
- Amount paid or received in euro
- Exchange rates used to convert crypto values to euro
- Transaction fees
- Wallet addresses (where relevant)
Crypto tax software such as Koinly, CoinTracker, or TaxBit can help compile these records. However, the taxpayer remains responsible for the accuracy of their returns.
DAC8: Automatic Reporting from 2026
The EU's DAC8 Directive requires crypto-asset service providers (CASPs) operating in the EU to automatically report client account information to national tax authorities from 2026. This means Revenue will receive transaction data from regulated exchanges, including details of Irish-resident clients' crypto transactions. Taxpayers who have not been reporting crypto income should consider making a voluntary disclosure to Revenue before this data starts flowing.
Getting Tax Advice
Crypto tax in Ireland is complex, particularly for active traders, DeFi participants, NFT creators, and stakers. A tax adviser registered with the Irish Taxation Institute (ITI) can help you:
- Calculate your annual CGT and income tax liability accurately
- Optimise use of the annual CGT exemption
- Structure crypto holdings tax-efficiently
- Make a voluntary disclosure if you have undeclared crypto income
- Prepare Revenue returns for complex DeFi or presale situations
Related Guides
- Cryptocurrency Law Ireland 2026
- Crypto Presale Legal Requirements
- DeFi Legal Issues Ireland 2026
- Getting Paid in Crypto — Employment Law
Disclaimer: This page provides general tax information only. It does not constitute tax or financial advice. Always consult a qualified tax adviser for advice specific to your circumstances.