Greece is preparing legislation that would impose a 10% capital gains tax on cryptocurrency profits, marking the country's first comprehensive tax framework for digital assets. According to a Reuters report, the draft bill has entered public consultation and is expected to reach parliament in November.

Under the proposal, annual cryptocurrency capital gains of up to €500 would be exempt from taxation. Gains above that threshold would fall under the proposed 10% rate.

New Tax Rules for Crypto Investors

The legislation is designed to close a gap in Greece's tax system, which currently lacks dedicated rules for cryptocurrency capital gains. Until now, investors have had no codified guidance on when a digital asset sale triggers taxation or how a gain should be measured. The draft also sets out how authorities would calculate gains when investors sell digital assets.

Under the proposed framework:

• Annual crypto gains of up to €500 would remain tax-free.
• Gains from cryptocurrency transfers would face a 10% rate.
• Crypto-to-crypto exchanges would not create a taxable capital gain.
• Income from lending, liquidity provision and staking would face a 10% tax as interest.

The Greek Finance Ministry said the rules would provide greater certainty for investors and tax authorities. The proposal also addresses how authorities would value digital assets used as employee or shareholder compensation.

Revenue Impact Remains Unclear

The government has not provided a revenue estimate for the proposed crypto tax. Greek officials said measuring the domestic cryptocurrency market remains difficult because many investors use trading platforms based outside the country.

The proposal comes as European Union crypto reporting rules take effect under the EU's DAC8 directive, which requires crypto-asset service providers to report customer transactions to tax authorities. However, EU member states still set their own cryptocurrency tax rates, creating significant differences across the bloc.

The draft also represents a change from an earlier plan. Officials had previously considered a 15% capital gains tax with the same €500 annual exemption; the latest version reduces the proposed rate to 10%.

The bill remains subject to public consultation and parliamentary approval, meaning the final tax rate and detailed implementation rules could still change before the legislation becomes law. With the draft expected in parliament in November, the coming consultations and floor debate will show whether the 10% rate and €500 exemption hold in their current form.

Source: CryptoMeter News