Faroe Islands capital gains tax calculator
The Faroe Islands taxes an individual’s securities gains under its own Kapitalvinningsskattalógin at a flat 35%: shares, funds and bonds alike, with no holding-period relief, once the year’s gains pass DKK 1,000. Only losses on market-registered bonds may be deducted; a share loss never nets. Crypto and real property sit outside the statute.
Work out the tax on a share, bond or unlisted disposal from your dates and costs. Enter sales by hand or import your exchange CSVs, and the calculator splits multi-parcel sales under the statute’s FIFO rule, applies the 1,000 kr. cliff and the market-registered bond-loss netting, and shows the arithmetic behind the final figure. Everything stays in your browser.
Rates current as of 2026-09-30, from the Kapitalvinningsskattalógin on logir.fo.
Current rules
The rates behind the number
The kapitalvinningsskattur by year
| Tax year | Securities gain (shares, funds, bonds) | Crypto | Real property |
|---|---|---|---|
| 2021 | 35% | No tax | No capital gains tax |
| 2022 | 35% | No tax | No capital gains tax |
| 2023 | 35% | No tax | No capital gains tax |
| 2024 | 35% | No tax | No capital gains tax |
| 2025 | 35% | No tax | No capital gains tax |
| 2026 | 35% | No tax | No capital gains tax |
| 2027 (planning) | 35% (statutory rate, no 2027 change enacted) | No tax | No capital gains tax |
Rules and exemptions
| Rule | Value |
|---|---|
| Shares, fund units, ETFs and similar securities (§ 1 nr. 1) | 35% of the gain, listed or unlisted alike |
| Bonds, loan deeds, mortgage deeds and other financial claims (§ 1 nr. 2) | 35% of the gain |
| Holding period | None: the law taxes at realisation whatever the period (§ 4 stk. 1) |
| De minimis (§ 6 stk. 4) | Gains enter the settlement only above DKK 1,000 in the year; above it, the whole settlement taxes |
| Share and fund losses | Not deductible for individuals (§ 6 stk. 4) |
| Bond losses | Deductible only where the instrument is registered on a securities market (§ 6 stk. 4) |
| Loss carryforward | Settlement deficits carry forward, no stated expiry (§ 14 stk. 3) |
| Parcel matching | First in, first out, the statute's own FIFO-prinsippið (§ 3 stk. 2) |
| Crypto | Outside § 1's enumeration; no provision taxes a private disposal |
| Real property | Outside § 1; land bought for resale and land rentals are income-tax matters, and transfers bear tøkugjald |
Rates as of 2026-09-30; each table links back to the authority page above. The crypto and property zeros follow from the statute’s own list of taxed assets.
Questions
Faroe Islands capital gains questions
How much is capital gains tax in the Faroe Islands?
Securities gains pay a flat 35% kapitalvinningsskattur. The Kapitalvinningsskattalógin (Løgtingslóg nr. 164 of 21 December 2001) charges the 35% on a settlement that nets the year's gains of shares, fund units and bonds; the rate is the same for listed and unlisted holdings, at any holding period, and has applied since 2014. The year's gains only enter the settlement once they exceed DKK 1,000 in total.
Are share losses deductible in the Faroe Islands?
No. Section 6, second paragraph, lets an individual deduct losses only on loan deeds, bonds and mortgage deeds registered on a securities market. A loss on shares or fund units reduces nothing: sell one stock at a 200,000 kr. loss and another at a 300,000 kr. gain, and the 35% charges the full 300,000 kr.
Is crypto taxed in the Faroe Islands?
Not under this law. Section 1 of the Kapitalvinningsskattalógin lists what it covers: shares, investment-fund units and similar securities, financial claims, debt releases, options, dividends and interest. Cryptocurrency is none of those, and no other Faroese provision taxes a private crypto disposal. The calculator shows crypto gains at 0% and says why.
What about selling property?
Real property is outside the Kapitalvinningsskattalógin. The income-tax act taxes land bought to resell at a profit and taxes land rentals, but the law has no gains tax on a private home. The transfer itself bears tøkugjald, a duty on the transaction under Løgtingslóg nr. 65 of 30 May 2024, charged whether you gain or lose.
When do I report the gain?
TAKS, the Faroese tax agency, issues the pre-filled kapitalvinningsuppgerð in March for the year before, showing interest, dividends and securities disposals as it holds them. If it is correct you do nothing; if a disposal is missing or wrong, amend it in Borgaragluggin. Sellers of securities may instead receive a self-assessment request.
What law taxes a Faroese capital gain?
The Faroe Islands taxes an individual's capital gains under its own statute, the Kapitalvinningsskattalógin: Løgtingslóg nr. 164 frá 21. desember 2001 um skatting av kapitalvinningi, consolidated text last amended by Løgtingslóg nr. 127 frá 13. desember 2024 (https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173). Taksveiðisstovan describes the tax as covering income "frá t.d. rentum, vinningsbýti og virðisbrævasølu" (from e.g. interest, dividends and securities sales) and answers the share-sale question plainly: "Ja. Man rindar skatt av øllum vinningi í sambandi við eitt nú rentur, vinningsbýti og virðisbrøv." Sources: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173 and https://www.taks.fo/fo/borgari/skattur/kapitalvinningsskattur and https://www.taks.fo/fo/borgari/oss/skal-man-rinda-skatt-um-man-tjenar-upp-a-at-selja-partabroev
What exactly is the 35% rate?
The rate is a flat 35% for natural persons and estates. § 14 stk. 2: "Vísir uppgerðin ein vinning, lata likamligir persónar og deyðsbúgv ein skatt upp á 35%." Companies and foundations pay 18% on the same settlement (outside this calculator's personal scope). § 29 temporarily raised the individual rate for 2010-2013 (39%, 38%, 37%, 36%); 35% has applied since 2014 and no later amendment changes it. Nothing in the law varies the rate by holding period, income band or size of gain. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
How are a year's gains netted?
One settlement a year. § 14 stk. 1: "Ein uppgerð verður gjørd, har vinningur og tap eftur §§ 4, 6, 7, 8, 9, og 10 verða løgd saman." The calculator sums the year's covered gains (shares, fund units, bonds and other financial claims) and nets the deductible losses in that one settlement. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
How does the DKK 1,000 threshold work?
De minimis, recorded as the annualExemption figure and modelled as the inclusion cliff the statute words: § 6 stk. 4 — for natural persons and estates the gain only counts in the settlement "um vinningurin er meir enn 1.000 kr. samanlagt um árið" (if the gain is more than 1,000 kr. in total for the year). When the year's total gains exceed 1,000 kr. the whole settlement is taxed; the 1,000 kr. is a threshold on inclusion, never a deduction from the base. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
Why is a share loss not deductible?
Share and fund losses are not deductible for an individual. § 6 stk. 4, second limb: losses may only be deducted for "lánsbrøvum, skuldarbrøvum og pantibrøvum, ið eru skrásett á virðisbrævamarknaði" — loan deeds, bonds and mortgage deeds registered on a securities market. A loss on shares or fund units finds no relief, at any size or holding period, and nor does a loss on a bond not registered on a market. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
Do capital losses carry forward?
Deficits carry forward. § 14 stk. 3: a settlement showing a deficit deducts it in the following years, "í tann mun tað ikki er rúm fyri tí í møguligum nettovinningi eitt fyrri ár" (to the extent there was no room for it in the possible net gain of an earlier year). No expiry is stated; the earlier-year lookback this wording implies is not computed by the calculator, which carries the deficit forward indefinitely and says so. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
How are purchases matched to sales?
Realisation and FIFO. § 4 stk. 1 taxes a gain or loss when realised (realisatiónsprinsippið); § 3 stk. 2 and § 4 stk. 2: "verður tað, sum fyrst er útvegað, roknað sum fyrst avhendað (FIFO-prinsippið)" — what is first acquired counts as first disposed. The calculator matches parcels FIFO. Source: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173
What about dividends, interest and small balances?
Dividends and interest are inside the same law but outside this calculator: the payer withholds 35% on dividends to individuals and estates (§ 15 stk. 1) and Faroese financial institutions withhold "við 35% burtur av tí tilskrivaðu rentuni" on deposit interest (§ 16 stk. 1), so they do not join the disposal settlement this record models. Residual tax under 500 kr. is not collected and refunds under 50 kr. are not paid (§ 18 stk. 2). Filing: TAKS issues the pre-filled kapitalvinningsuppgerð in March for the prior year; securities sellers may instead file a kapitalvinningssjálvuppgáva. Sources: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173 and https://www.taks.fo/fo/borgari/sjalvuppgava-2025/kapitalvinningsuppgerd
What happens if I move abroad?
Emigration, not computed: § 2a treats a person moving abroad with securities as having sold them where their value exceeds 100,000 kr. or is lower than at acquisition, with payment deferrable against a bank guarantee (TAKS). Scope: § 2 extends the law to persons, companies, estates and foundations under full or limited Faroese tax liability; business trading falls under the income-tax act's B-income rules instead. Sources: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173 and https://www.taks.fo/fo/borgari/skattur/kapitalvinningsskattur
Why are crypto and property shown at zero?
Real property and crypto sit outside the statute. § 1 enumerates shares, investment-fund units and similar securities, financial claims, debt releases, options, dividends and interest; fastogn (real property) is not among them. The income-tax act taxes land dealings only where the land was bought to resell at a profit (§§ 27 and 29 nr. 1; land originally bought for agriculture sells tax-free) and taxes land rentals always (§ 25 nr. 2) — none of which is a gains tax on a private home. Property transfers instead bear tøkugjald, Løgtingslóg nr. 65 frá 30. mai 2024 um tøkugjald, a transfer duty rather than a tax on the gain. No Faroese provision taxing a private crypto disposal was located in the sources captured; the law's text contains no mention of sýnadarmynt, kryptomynt or virtuell mynt. Sources: https://logir.fo/Logtingslog/164-fra-21-12-2001-um-skatting-av-kapitalvinningi-sum-seinast-broytt-vid-logtingslog-nr-173 and https://www.taks.fo/fo/borgari/skattur/skattur-av-joerd-og-lunnindum and https://www.taks.fo/fo/log/logir/toekugjaldslogin-ll-um-toekugjald