A capital gain is the difference between what you sell an asset for and what it cost you. If you buy CryptocurrencyCryptocurrencyA digital currency secured by cryptography and recorded on a shared ledger, with no bank or government issuing or controlling it. for ISK 100,000 and later sell it for ISK 150,000, your gain is ISK 50,000 before costs are taken into account. The Icelandic term is söluhagnaður.
How is a gain on crypto calculated?
According to Skatturinn, the Icelandic tax authority, the gain is the difference between the sale price and the cost basisCost basisWhat an asset cost you, meaning the purchase price plus commission. A capital gain is the sale price minus the cost basis.. The cost basis of crypto you bought is the purchase price plus handling costs or commission, and handling costs can also be deducted from the sale price.
For individuals who are not running a business, gains on crypto are taxed as capital income (fjármagnstekjur). How long you have held the crypto makes no difference.
Skatturinn doesn't only treat a sale for krónur as a sale. These count as sales too:
- swapping one cryptocurrency for another
- paying for goods or services with crypto
Moving crypto between your own walletsCrypto walletAn app or device that holds the keys to your crypto and lets you receive, store and send it., however, is not a taxable event.
Good to know
- Losses can only offset gains on the same coin. According to Skatturinn, a loss can be deducted from gains on the same type of crypto in the same year, but not from gains on a different type.
- Keep track of your purchases. You need to know what you paid for your crypto to work out the gain correctly. That matters especially if you buy often, for example through dollar-cost averagingDollar-cost averaging (DCA)Buying the same amount at regular intervals, for example monthly, instead of investing everything at once..
- Everyone's situation is different. The rules can apply differently, for example if your trading counts as a business.
Read more in Crypto and tax in Iceland and on Skatturinn's website. Talk to your accountant or Skatturinn about your own situation.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.