Are Crypto Gifts Taxable? Rules by Country

Giving or receiving cryptocurrency as a gift can have very different tax consequences depending on where you live. In some countries, receiving a crypto gift is completely tax-free. In others, it can trigger immediate income tax. And in almost all cases, selling gifted crypto later creates a taxable event with special cost basis rules.

This guide covers how crypto gifts work in six major jurisdictions. Consult a qualified tax professional for advice specific to your situation.

🇺🇸 United States

Receiving a gift

The recipient of a crypto gift does not owe any tax when they receive it. The US gift tax system places the obligation on the giver, not the receiver.

Giving a gift

• Gifts up to $18,000 per recipient per year (2026) are excluded from gift tax reporting
• Above that, the giver must file Form 709, but no tax is typically owed until lifetime gifts exceed the unified credit (~$13.61 million)
• Giving crypto is not a taxable disposal — no capital gains tax is triggered by the transfer itself

Cost basis

The recipient inherits the giver's cost basis (known as "carryover basis"). If you received Bitcoin that was originally purchased for $1,000, your cost basis is $1,000 regardless of its value when gifted.

Inheritance

Inherited crypto receives a stepped-up basis to the fair market value at the date of death. This can eliminate decades of unrealised gains — one of the most significant tax advantages in the US tax code.

🇬🇧 United Kingdom

Receiving a gift

Receiving crypto as a gift is not immediately taxable. However, the recipient takes on a deemed acquisition at the market value at the time of the gift for CGT purposes.

Giving a gift

• Giving crypto is treated as a disposal at market value for CGT purposes — the giver may owe Capital Gains Tax on any gain
• Exception: transfers between spouses or civil partners are "no gain, no loss" — a key tax planning strategy

Spousal transfers

Transferring crypto to a spouse is one of the most commonly used tax strategies in the UK. Each spouse has a £3,000 CGT allowance. Transferring appreciated crypto to a spouse before selling effectively doubles the available allowance.

Inheritance Tax

Crypto is part of a deceased person's estate and may be subject to Inheritance Tax at 40% on the value above £325,000 (the nil-rate band). There is no stepped-up basis in the UK.

🇦🇺 Australia

Receiving a gift

Receiving crypto as a gift is not a taxable event. Australia has no gift tax.

Giving a gift

• The ATO treats giving crypto away as a disposal at market value — the giver may owe CGT on any gain
• If you give crypto to a family member at below market value, the ATO still uses market value for CGT purposes

Cost basis

The recipient's cost basis is the market value at the time they received the gift. The 12-month CGT discount clock starts from the date the gift was received.

Inheritance

Australia has no inheritance tax. Inherited crypto is generally CGT-free at the time of inheritance. The beneficiary inherits the deceased's cost basis and, in some cases, their acquisition date for CGT discount purposes.

🇩🇪 Germany

Receiving a gift

Receiving crypto as a gift is subject to Schenkungsteuer (gift tax), but generous exemptions apply based on the relationship:

• Spouse: €500,000 tax-free (per 10-year period)
• Children: €400,000 tax-free
• Grandchildren: €200,000 tax-free
• Unrelated persons: €20,000 tax-free

The holding period advantage

In Germany, the recipient inherits the giver's holding period. If your parent held Bitcoin for 10 months and gifts it to you, you only need to hold it for 2 more months to qualify for the 1-year tax-free exemption under §23 EStG. This is a significant advantage not available in most other countries.

Inheritance

Inherited crypto is subject to Erbschaftsteuer (inheritance tax) with the same exemption thresholds as gifts. The heir inherits the deceased's cost basis and holding period.

🇨🇦 Canada

Receiving a gift

Canada has no gift tax. Receiving crypto as a gift is not a taxable event for the recipient.

Giving a gift

• The giver is deemed to have disposed of the crypto at fair market value — triggering potential capital gains
• Exception: transfers to a spouse can be made at the transferor's cost basis (rollover), but attribution rules apply — gains on the transferred crypto may be attributed back to the giver

Cost basis

The recipient's cost basis is generally the fair market value at the time of the gift. For spousal transfers using the rollover, the recipient takes the giver's Adjusted Cost Base (ACB).

🇮🇳 India

Receiving a gift

India has the strictest gift tax rules for crypto among major jurisdictions:

• Crypto gifts from specified relatives (spouse, parents, siblings, in-laws as defined in the Income Tax Act) are exempt regardless of amount
• Crypto gifts from non-relatives are tax-free up to ₹50,000 total per year
• If total gifts from non-relatives exceed ₹50,000, the entire amount is taxable as "Income from Other Sources"

Cost basis

The recipient's cost basis is the previous owner's cost of acquisition. When the gifted crypto is eventually sold, the 30% flat tax applies to the gain calculated from that original cost.

Crypto received at marriage

Gifts received on the occasion of marriage are exempt from gift tax regardless of the source, making wedding-related crypto gifts a potential exemption.

Country Comparison Table

Recommended Tools

Properly tracking the cost basis of gifted crypto requires detailed records. These tools can help:

• Koinly — supports gift transactions with manual cost basis entry across all 6 countries
• CoinTracking — allows custom transaction types including gifts and inheritance
• Coinpanda — supports gift and donation tracking with country-specific reports

Frequently Asked Questions