A proposal to tax capital gains on crypto-assets across the European Union is gaining traction among member states as negotiations over the bloc's next long-term budget enter a decisive phase. European sources told the Portuguese news agency Lusa that the idea is being viewed with "much interest" by capitals, even though no formal legislative text on the measure yet exists.
The idea forms part of a broader debate over new sources of EU revenue, known as "own resources", tied to the Multiannual Financial Framework for 2028-2034. Ireland, which currently holds the rotating presidency of the Council of the EU, is expected to review the file and set out its position in mid-October, building on a first comprehensive negotiating package presented by the previous Cypriot presidency in June.
A crowded field of new levies
The European Commission tabled its proposal for the next budget in July, putting the overall package at almost two trillion euros, equivalent to 1.26% of EU gross national income. Alongside it, the Commission proposed five new own resources it estimates could raise about 58.5 billion euros a year: revenues from the carbon market, the carbon border adjustment mechanism, a contribution on electronic waste, a share of tobacco taxes, and a contribution from large companies.
The European Parliament has pushed for a larger budget, equivalent to 1.27% of EU GNI, and in April proposed its own set of revenue-raising measures that it says could generate at least 60 billion euros annually. These include contributions on large digital services, on online gambling and betting, an expanded carbon border mechanism, and a tax on crypto-asset capital gains.
Carla Tavares, a Portuguese Socialist MEP and Parliament co-rapporteur on the dossier, has argued that these new resources are indispensable to the overall settlement. "They are an essential part of the solution," she said, adding: "Europe needs a sufficiently robust budget."
Unanimity required, timeline tight
Any new own resource requires unanimous approval by member states in the European Council, a high bar that has complicated previous attempts to introduce EU-wide levies. Council President António Costa has said he wants leaders to reach agreement this semester, with confirmation by MEPs expected next year. Costa has also acknowledged the possibility of an EU-level tax on tobacco products, including heated tobacco and e-cigarettes, as part of the same package.
Negotiations are set to continue through a series of European Council summits: a regular meeting on 15-16 October, an extraordinary session on 26-27 November, and a further summit on 17-18 December. The next long-term budget is intended to take effect on 1 January 2028.
For now, the crypto capital gains tax remains a line item in a much larger and unresolved budget negotiation, with member states' interest noted but no agreed design, rate or implementation timeline attached to the measure.
