Economic and Commercial Law Researches

Taxation of Cryptocurrencies: A Comparative Study of Iran and Europe

Document Type : Original Article

Authors

Navid Rahbar 1
Mohammadreza Afshari 2

1 Assistant Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran. Corresponding Author’s email: n_rahbar@sbu.ac.ir.

2 LL.M. Graduate, Faculty of Law, Shahid Beheshti University, Tehran, Iran.

10.48308/eclr.2026.242918.1243
Abstract
With the ever-increasing expansion of cryptocurrency activities in the fields of trading, investment, mining, and payment, the taxation of these digital assets has become one of the fundamental challenges of fiscal policymaking at the global level. The decentralized nature of cryptocurrencies, the relative anonymity of transactions, and the possibility of rapid cross-border transfers have cast doubt on the effectiveness of traditional tax systems. While many countries, particularly in Europe, have taken steps to develop specific tax frameworks for cryptocurrencies, the legal and tax status of these assets in Iran remains subject to serious ambiguity. A comparative examination of the tax systems of European countries such as Germany, France, Spain, and the United Kingdom shows that cryptocurrencies are generally recognized as financial assets and are subject to income tax or capital gains tax, although differences exist in their methods of implementation. These include the exemption for long-term holding in Germany and the imposition of tax only at the time of conversion into fiat currency in France and Spain. Furthermore, the European Union’s DAC8 framework reflects an effort to standardize reporting and reduce tax evasion. In contrast, cryptocurrency taxation in Iran lacks an independent and transparent legal basis and is mainly applied within the general framework of the Direct Taxation Act and through the monitoring of bank transactions. Circulars and regulations issued by supervisory authorities, particularly the Central Bank, are primarily aimed at regulating exchanges and preventing financial crimes rather than establishing a coherent tax system. This legal gap has resulted in increased opacity, intensified tax evasion, and reduced investment security. The present article proposes that Iran, by drawing on European experiences, should develop a specific and transparent framework for the taxation of cryptocurrencies.

Keywords

Cryptocurrency
Capital Gains Tax
Tax Reporting
Tax Evasion
Tax Policy

 

References:

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Economic and Commercial Law Researches
Volume 4, Issue 2 - Serial Number 14
Summer 2026
Pages 171-202

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