Greece Plans 10% Capital Gains Tax on Cryptocurrencies

Tax Rules and Exemptions

Published officially on Wednesday, the proposed legislation sets a clear 10% tax rate on capital gains derived from cryptocurrency trading. To protect small retail participants, the government has included an exemption for annual gains that do not exceed the threshold of 500 euros, which is equivalent to 559.95 US dollars. Public consultation on the draft bill will remain open until October 22. Following this feedback period, the final text will be submitted to parliament for a vote during the first week of November.

The new fiscal regime covers more than just standard cryptocurrency sales. The proposal allows investors to voluntarily declare past capital gains without facing penalties for prior non-compliance or delays. Furthermore, token-to-token swaps will be treated as tax-neutral transactions and will not trigger capital gains obligations. Meanwhile, income generated from specific blockchain activities such as staking, lending, or liquidity provision will also attract a flat 10% tax rate.

The European Context

This move represents a crucial milestone for Greece, which previously lacked a dedicated tax structure for the crypto industry. Across the European Union, most member states have already established their own regulatory frameworks. Austria introduced a 27.5% tax on crypto gains back in March 2022. France applies a flat 30% tax on individual digital asset profits, a rule in place since December 2018.

In Germany, the Federal Ministry of Finance outlined a proposal in September to tax cryptocurrency trading profits under the standard income tax regime at a rate of 25%, starting in 2028. This upcoming German measure contrasts with current local laws, where holding crypto assets for more than twelve months makes profits entirely tax-exempt, keeping Germany a popular destination for international crypto investors.