On Thursday, Greece’s parliament enacted a bill establishing a 10% capital gains tax on cryptocurrencies, marking the country’s inaugural comprehensive legal framework for the taxation of crypto assets.
Under this new legislation, cryptocurrency capital gains up to €500 ($563) per year will be exempt from taxation. This exemption serves as a minor buffer for bitcoin holders in Greece, rather than as a means to protect larger holdings from tax liabilities.
A senior finance ministry official informed Reuters that, “Further implementation directives will be published in the coming weeks, which will also define transparency and audit rules.”
An earlier draft, circulated in October, proposed a higher tax rate of 15%. However, the version passed by lawmakers features a reduction of five percentage points while maintaining the €500 annual exemption present in the initial proposal.
Scope of Taxation for Bitcoin Holders
This capital gains tax will take effect on January 1, 2027, according to the Greek finance ministry’s coverage of the legislation. The tax will be levied on the net gain, defined as the difference between the acquisition price and the transfer price, rather than on the full sale proceeds. Associated trading fees and costs will be included in this calculation.
It is important to note that a taxable transfer is not limited to sales in euros. Utilizing cryptocurrencies to purchase goods or services or contributing them to increase company capital will also trigger a taxable gain under the new regulations. This has significant implications for individuals in Greece who choose to pay merchants in bitcoin directly instead of converting the currency beforehand.
Merely holding bitcoin while its value increases in euros does not, in itself, create a tax obligation. Additionally, crypto-to-crypto exchanges, such as exchanging bitcoin for another token, are classified as non-taxable events, a stance that aligns with France’s approach of avoiding taxation on each cryptocurrency transaction.
Annual net gains at or below €500 are exempt from the tax. Analysis of the legislative text indicates that once net gains exceed this threshold, the entire net gain for the year will be taxed at the 10% rate, rather than just the portion exceeding €500. Moreover, losses exceeding €500 within a tax year may be carried forward for up to five years, but can only be offset against future crypto capital gains.
Furthermore, the acquisition of crypto assets will be included in Greece’s existing “source of funds” regulations starting in 2027. Buyers will need to demonstrate that the euros used to acquire bitcoin or other tokens originated from declared income or other legitimate sources. This rule does not introduce a separate purchasing tax; rather, it expands the audit trail regarding the funding of cryptocurrency purchases.
Diverse Tax Landscape in the EU
Member states of the European Union do not operate under a unified tax system regarding cryptocurrency. Tax rates on crypto gains generally range from approximately 8% to 30% across different countries. Greece’s 10% rate positions it at the lower end of this spectrum, below France’s higher 30% tax and above Cyprus’s 8% levy.
This patchwork taxation landscape is evolving throughout the EU. For instance, the Netherlands is moving towards a realized capital gains tax by 2028, while Germany and Portugal continue to exempt cryptocurrencies held for over one year. In addition, the EU’s DAC8 reporting regulations mandate that crypto platforms submit user and transaction data to national tax authorities—a measure that Greece has already adopted into its domestic law.
Due to the predominance of investors using foreign platforms, accurately projecting state revenue from the new tax remains difficult, as noted by the finance ministry official.
The practical applicability of the new tax rate for bitcoin holders trading on international exchanges presents a significant challenge. While the 10% rate is now codified in law, the effectiveness of this regulation will depend on Athens’s ability to match legal obligations with enforceable cost-basis data from offshore platforms, a matter that forthcoming directives will need to address.
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