Summary

  • The Greek government is set to introduce a 10% tax on capital gains from cryptocurrencies, as per a draft bill released for public feedback, according to Reuters.
  • Profits up to €500 annually will be exempt from this tax, with the legislation expected to reach the Greek parliament in November.
  • Earlier in June, officials indicated a potential rate of 15%.

Greece is planning to establish a 10% capital gains tax on cryptocurrency transactions, as indicated in a draft bill made available for public consultation, Reuters reported on Thursday.

Under this proposal, annual earnings of up to €500 (approximately $560) will not be taxed. Currently, Greece lacks a comprehensive legal framework for cryptocurrency taxation, as noted in the report.

This new tax rate is lower than the previously suggested 15%, which was mentioned by two government officials in June. At that time, one official stated that individual mining of cryptocurrencies would not incur taxes, while mining conducted by registered companies would be subject to taxation.

Greek authorities have acknowledged the difficulty in estimating the size of the nation’s cryptocurrency market, primarily because most transactions occur on platforms based outside of Greece. There is no specific forecast available regarding the potential revenue this tax may generate, according to Reuters.

Cryptocurrency Taxation in Europe

European Union member states do not share a common approach to cryptocurrency taxation, resulting in significant variations in tax rates. For example, Cyprus has implemented a flat 8% tax on crypto gains for both individuals and businesses starting January 1, while Ireland imposes a 33% tax.

Italy has increased its tax from 26% to 33% at the beginning of this year, and Spain taxes crypto profits as savings income at progressive rates, reaching up to 28%. In Germany, profits from cryptocurrencies held for over a year are exempt from taxation, while the Netherlands applies a presumed return on assets instead of taxing realized gains.

As of January 1, the EU's DAC8 regulations require crypto service providers to gather transaction data from users residing in the EU, which tax authorities will then exchange with each user’s home country, according to the European Commission. This year marks the inaugural reporting period under these rules.

In the UK, there are plans to postpone capital gains tax on decentralized finance (DeFi) lending and liquidity pool investments. Notably, 240 crypto millionaires in the UK accounted for more than half of the nation's taxable crypto earnings.

The proposed tax bill in Greece is expected to be presented to parliament in November.