Greece Enacts New 10% Tax on Crypto Gains, Exempting Initial €500 Earnings

New Tax Law for Cryptocurrency in Greece

On November 5, Greece’s legislature passed a new tax law that implements a 10% tax on profits earned from cryptocurrency, marking the first extensive framework for crypto taxation in the nation. This law, which exempts gains up to €500 each year, has been months in the making and was reported by Reuters. The Finance Ministry has indicated that additional guidelines will soon be issued, detailing regulations related to transparency and tax audits.

Revenue and Tax Rate Insights

While the government has not provided forecasts on how much revenue this new tax could generate, officials acknowledged that many Greek investors utilize overseas platforms for trading, complicating efforts to accurately gauge the domestic crypto landscape. Interestingly, the newly approved tax rate is less than the anticipated 15% that officials had proposed earlier this year. In June, crypto.news had previously noted that this initial proposal included a similar annual exemption for the first €500 in gains.

Come October, the draft legislation was revised down to a 10% rate, maintaining the same annual exemption. Reports surfaced on October 8 suggesting that this tax bill was poised for a vote in parliament by November.

Mining and Tax Exemptions

Significantly, the original June proposal made distinctions between individual and corporate mining, asserting that mining conducted by individuals would be exempt from the capital gains tax, unlike corporate mining activities.

The approval of this tax structure follows a public consultation that wrapped up on October 22, with the Finance Ministry’s timeline indicating a parliamentary vote was planned for the first week in November. According to the consultation details, swapping one cryptocurrency for another will not result in a taxable capital gain.

Taxable Gains and Voluntary Disclosure

The new framework determines taxable gains by assessing the difference between purchase and sale prices, utilizing an average cost when assets are acquired through multiple purchases. There is also a provision allowing a 12-month period from the law’s announcement for taxpayers to voluntarily declare gains from prior transactions, exempting them from penalties or interest under specified conditions. Additionally, transactions involving the sale of crypto assets are not subject to the Digital Transaction Fee.

A tax publication in Greece, Forin, analyzing the October bill, emphasized that voluntary disclosure alone would not validate the source of funds used for purchasing crypto assets. The legislation stipulates that crypto transactions do not constitute business activity by virtue of being repeated transactions. Purchases will be recognized as acquisition expenses, aiding in investigations into the origin of funds.

Valuation and Taxation of Crypto Benefits

Furthermore, the law outlines how benefits provided in crypto to employees, partners, or shareholders should be valued at market rates upon receipt. Inheritance and gifts involving cryptocurrency will be taxed based on the previous day’s values on recognized platforms.

The ministry has also classified returns derived from lending, liquidity provision, and staking as interest, which will be subject to a 15% tax rate. This categorization shows that investment profits differ from income generated through crypto lending and validation processes.

International Context and Future Regulations

For context, in the United States, the Internal Revenue Service considers digital assets as property for tax purposes and mandates that taxpayers report exchanges involving cryptocurrencies. The IRS stipulates that gains must be tracked from both personal and investment sales, with distinct guidelines for goods and services.

Adding to the challenge of crypto taxation, the EU is set to enact DAC8 regulations mandating that crypto service providers report on transactions involving EU residents starting January 1, 2026. The European Commission aims for these providers to share transaction data with national tax authorities, who will in turn communicate with the tax authorities in the investors' countries. The scope of these regulations extends over various crypto assets, including decentralized tokens and NFTs, securing comprehensive oversight of both domestic and international activities, with future exchanges among EU tax authorities set for 2026, concluding by September 30, 2027.