Greece prepares to levy 10% capital gains tax on cryptocurrency

Greece is drafting legislation to introduce a 10% capital gains tax on cryptocurrencies, according to a forthcoming bill published on Wednesday. The proposed tax will exempt annual gains up to 500 euros ($559.95). Officials aim to conclude public consultation on the draft bill by October 22, with a parliamentary vote expected early November.

The measure would also permit voluntary reporting of past crypto profits without penalties, exempt in-house cryptocurrency exchanges from taxation, and levy a flat 10% tax on earnings from staking, lending, or liquidity provision. This represents Greece's inaugural comprehensive cryptocurrency taxation framework. Many European nations have already established digital asset taxation rules.

Austria imposed a 27.5% tax on cryptocurrency gains in March 2022, while France introduced a 30% flat tax on individual crypto capital gains in December 2018. In September, Germany's Federal Ministry of Finance reportedly unveiled a draft proposal to shift cryptocurrency trading profits to the standard 25% flat-rate tax starting in 2028.

Currently, profits from cryptocurrency assets are tax-free if held for over a year, making Germany an attractive tax haven. CoinShares research notes a surge in crypto adoption in Germany, while the UK is perceived as falling behind.