Greece Introduces 10% Tax on Cryptocurrency Gains Starting 2027

On November 5, 2023, Greece's Parliament approved a comprehensive tax framework for cryptocurrencies, establishing a 10% tax on net profits from individual crypto investments starting January 1, 2027. This legislation marks Greece's first structured approach to taxing digital assets.

Under the new rules, individual investors will benefit from an annual exemption of €500. Once their net gains exceed this threshold, the entire amount will be subject to the 10% tax. The framework aims to integrate cryptocurrency investments into Greece's existing tax system and clarify regulations for investors trading or holding digital assets.

Details of the Tax Framework

• The tax applies to profits from selling cryptocurrencies for traditional currency.
• Using cryptocurrency for purchases may also trigger capital gains tax.
• Crypto-to-crypto exchanges are expected to remain untaxed, though legal clarifications are pending.

Additionally, income from staking, crypto lending, and decentralized finance (DeFi) activities will be taxed at a higher rate of 15%. Investors can carry forward losses exceeding €500 for up to five years to offset future gains. Furthermore, a provision allows investors to voluntarily declare previously unreported gains within 12 months without incurring late-filing penalties.

The new regulations also introduce enhanced reporting requirements, mandating that funds used to acquire cryptocurrencies must originate from declared income or lawful sources. This development aligns with the European Union's broader initiative to improve cryptocurrency tax transparency through DAC8, which obliges crypto service providers to report transaction data for EU residents.