Greece Plans 10% Crypto Capital Gains Tax, Down From 15% Floated in June - Decrypt

In brief

• Greece plans to impose a 10% capital gains tax on cryptocurrencies under a draft bill published for public consultation, Reuters reported.
• Gains of up to €500 a year would be exempt, and the bill is due to be submitted to the Greek parliament in November.
• Government officials told Reuters in June the rate would be 15%.

Greece plans to impose a 10% capital gains tax on cryptocurrencies, according to a draft bill published for public consultation, Reuters reported Thursday.

Crypto gains of up to €500 (about $560) a year would be exempt. Greece currently has no comprehensive legal framework for taxing crypto, according to the report.

The proposed rate is lower than the 15% that two government officials told Reuters was planned in June. One official said at the time that individual crypto mining would not be taxed, while mining by registered companies would be.

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, Reuters reported.

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, and the Netherlands taxes a presumed return on assets rather than realized gains.

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.

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.

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