I made a few trades on Kraken last year and made some gains. I'm not really sure how it works for tax reporting in Belgium, are there thresholds before you have to declare? And if I lose money, can I deduct it?
Yes, you do have to declare your crypto gains in Belgium, there's no real threshold below which it's free - even small gains need to be reported. For losses, it's a bit complicated because it depends on whether you're classified as a professional trader or just someone doing occasional trades; generally losses can offset gains, but you should really check with the tax authorities or an accountant because the rules change depending on your situation. Best thing is to keep all your Kraken statements and ask your tax administration or an expert directly before filing your return, just to be safe.
The real hassle in Belgium is that crypto is treated as securities capital gains, so technically you have to declare it even for small amounts, but the thing nobody mentions is archiving EVERYTHING - every transaction on Kraken, every wallet transfer, the fees - because if the tax authorities ask questions you're going to have a nightmare reconstructing all that later. For losses, you can offset them against gains from the same year, but it's not really a free deduction like it is for other sectors. Honestly, I'd suggest checking with a Belgian accountant who specializes in crypto because it's really an area where the rules change fast and you don't want to end up in a grey zone.
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