• Greece is moving to impose a 15% capital gains tax on cryptocurrency profits, aligning with EU regulatory frameworks.
  • The new tax regime, expected to be formalized by early 2025, would require reporting of crypto transactions.
  • The move aims to curb tax evasion and integrate digital assets into the formal economy.

Greece Moves to Tax Crypto Gains

Greece is preparing to introduce a capital gains tax on cryptocurrency profits, according to people familiar with the matter. The proposed rate of 15% would apply to individual investors, with higher rates possible for corporate entities. The legislation, still being drafted, is expected to be finalized by early 2025.

The tax marks a significant shift for Greece, where crypto activities have largely gone untaxed. The policy is part of broader efforts to align with European Union frameworks, including the Markets in Crypto-Assets (MiCA) regulation and upcoming reporting standards under DAC8.

“The goal is to bring clarity and compliance to the crypto sector,” a Greek finance ministry official said, speaking on condition of anonymity. “We want to ensure fair taxation while fostering innovation.”

The impact on local exchanges and investors could be substantial. Crypto service providers may face new reporting obligations, and individual traders could see increased administrative burdens. Some analysts warn that heavy-handed enforcement might drive activity underground or to jurisdictions with lighter tax regimes.

Context and Implications

Greece’s move follows a trend across Europe, where countries like Italy and Germany have already implemented crypto taxes. The 15% rate is in line with other EU nations, though some have opted for lower or higher thresholds. The Greek government is also considering incentives for early compliance to ease the transition.

For investors, the tax could reduce net returns, potentially dampening trading volumes. However, proponents argue that a clear tax framework will attract institutional capital by reducing regulatory uncertainty.

“Taxation is a sign of maturity for the crypto market,” said a Athens-based tax consultant. “It legitimizes the asset class, even if it imposes costs.”

The legislation is still subject to parliamentary approval, and details may change. A public consultation period is expected before the end of 2024.