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R107 – NFT Tax Treatment by Country

NFTs and collectibles may be treated differently across jurisdictions. Some countries classify NFTs as regular property, while others treat them as “collectibles” with special rates. The table below covers disposals and royalties.

Updated over 2 weeks ago

Country

Classification

NFT Disposals

Royalties (Received)

Royalties (Paid)

Notes

United States (IRS)

Collectibles

May face 28% long-term capital gains rate

Taxable income when received

Deductible expense

Airdrops also taxed as ordinary income

United Kingdom (HMRC)

Property (Cryptoassets)

Treated as capital disposals

Taxable income

Deductible expense

Applies to NFT trading and royalties

Canada (CRA)

Commodities

Capital gains or losses on disposals

Taxable income

Deductible expense

CRA treats NFTs like other crypto commodities

Germany

Property

Capital gains taxable unless held >1 year

Taxable income

Deductible expense

1-year exemption may apply

Spain

Property

Capital gains taxable

Taxable income

Deductible expense

Italy

Property

Capital gains taxable

Taxable income

Deductible expense

Ireland

Property

Capital gains taxable

Taxable income

Deductible expense

India

Virtual Digital Assets (VDA)

30% flat tax; no offsetting

Taxable income at 30%

Deductible expense

Harshest NFT regime

Japan

Property

Capital gains or income depending on use

Taxable income

Deductible expense

Airdrops taxable as income

South Africa

Property

Capital gains taxable

Taxable income

Deductible expense

Australia (ATO)

Property

Capital gains taxable

Taxable income

Deductible expense

Applies to NFT sales and royalties

New Zealand

Property

Income tax applies if acquired for resale

Taxable income

Deductible expense

Depends on intent of purchase


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