Greece Plans 10% Crypto Capital Gains Tax, Down From 15% Floated in June
Key Takeaways
- •Greece's draft bill would tax cryptocurrency capital gains at 10%, with annual gains up to €500 (about $560) exempt, and is due to be submitted to parliament in November.
- •The proposed 10% rate is lower than the 15% plan that government officials described in June and would sit toward the lower end of crypto tax rates across the European Union.
- •Greece currently has no comprehensive legal framework for taxing cryptocurrencies, a gap the bill would begin to close, though no specific revenue projection exists.
- •EU crypto tax rates vary widely, from Cyprus's flat 8% to 33% in Ireland and Italy, while Spain taxes gains at progressive rates up to 28% and Germany exempts holdings of more than a year.
- •Since January 1, EU DAC8 rules have required crypto service providers to collect transaction data on EU-resident users for exchange with tax authorities, with this year marking the first reporting period.
Greece plans to impose a 10% capital gains tax on cryptocurrencies under a draft bill published for public consultation, Reuters reported Thursday. At that level, the levy would sit toward the lower end of the crypto tax rates applied across the European Union.
Crypto gains of up to €500 (about $560) a year would be exempt under the proposal, meaning investors whose annual gains stay below that threshold would owe nothing. Public consultation allows stakeholders and members of the public to submit feedback on the draft before it is finalized. The bill is due to be submitted to the Greek parliament in November.
The proposed rate is lower than the 15% that two government officials told Reuters was planned in June. At the time, one official said individual crypto mining would not be taxed, while mining by registered companies would be.
Greece currently has no comprehensive legal framework for taxing crypto, according to the report — a gap the bill, if passed, would begin to close. Greek officials have said the size of the country's crypto market is very difficult to estimate because most investors use platforms based outside Greece. There is no specific projection yet for the revenue the tax would raise.
Crypto taxes in Europe
EU countries do not have a unified system for taxing crypto, and rates vary widely. Cyprus introduced a flat 8% tax on crypto gains for individuals and companies from January 1, while Ireland taxes them at 33%, according to a law firm analysis.
Italy raised its rate to 33% from 26% at the start of this year, and Spain taxes crypto gains as savings income at progressive rates of up to 28%. Germany exempts gains on crypto held for more than a year, while the Netherlands taxes a presumed return on assets rather than realized gains. Against that patchwork, Greece's proposed 10% would rank above Cyprus's 8% but below the rates charged in Ireland, Italy and Spain.
Since January 1, EU rules known as DAC8 have required crypto service providers to collect data on transactions by EU-resident users, which tax authorities then exchange with each user's country of residence, according to the European Commission. This year is the first reporting period, and it covers EU-resident users in Greece alongside those across the bloc.
Outside the EU, the UK plans to defer capital gains tax on DeFi lending and liquidity pool deposits. There, 240 crypto millionaires booked more than half of the country's taxable crypto gains.
The Greek bill is due to be submitted to parliament in November.
