Greece approves 10% crypto capital gains tax, effective January 2027

Greece’s parliament has approved a bill imposing a 10% capital gains tax on cryptocurrency investments, marking the country’s first comprehensive legal framework for taxing digital assets. The bill includes an exemption for annual crypto gains up to €500 ($563), offering a small threshold before the tax applies.

Scope and details of Greece’s new crypto tax

The tax is set to take effect on January 1, 2027. Lawmakers clarified that it will be applied to net capital gains, meaning investors will pay tax on the difference between the acquisition and transfer price of their cryptocurrency, after deducting trading fees and related costs.

A senior official from the finance ministry stated that additional implementation guidelines will be released in the coming weeks. These directives will define transparency requirements and audit procedures for crypto transactions.

Further implementation directives will be published in the coming weeks, which will also define transparency and audit rules, according to a senior finance ministry official.

An earlier draft proposed a higher 15% tax rate, but the final version passed by parliament sets the rate at 10%. The €500 exemption threshold from the initial proposal remains unchanged.

The law does not limit the tax to cryptocurrency sales for euros. Using digital assets to purchase goods or services or transferring them to increase company capital can also trigger a taxable event. However, simply holding cryptocurrencies as their value appreciates does not result in a tax liability.

Crypto-to-crypto swaps, such as exchanging bitcoin for another token, are not considered taxable under the bill. This provision aligns with France’s existing approach, which avoids taxation for conversions between different tokens.

If an investor’s net crypto gains for the year do not exceed €500, no tax is due. Once gains surpass that limit, the full amount becomes subject to the 10% tax. Losses exceeding €500 can be carried forward for up to five years, but can only offset future crypto capital gains.

Country Crypto Capital Gains Tax Rate Exemption/Rule Greece 10% €500 annual exemption; tax applies to total gain if threshold passed France 30% Crypto-to-crypto swaps not taxed; full sale taxation Cyprus 8% No specific exemption noted Germany, Portugal 0% Held longer than 1 year exempt

Starting in 2027, Greece will also require proof that the funds used to purchase crypto assets come from declared income or another lawful source. This new requirement places cryptocurrency acquisitions under the country’s existing “source of funds” checks but does not introduce a separate purchase tax.

Mini dictionary: “Source of funds” checks require investors to demonstrate that money used for a purchase comes from legitimate, declared sources, aiming to prevent money laundering and ensure compliance with tax laws.

Crypto taxation across the European Union

European Union member states do not follow a unified system for taxing cryptocurrencies. National tax rates on digital asset gains range from approximately 8% to 30%. Greece’s new 10% rate positions the country toward the lower end of the spectrum, below France and above Cyprus.

Other EU countries are also adjusting their crypto tax policies. The Netherlands will introduce a realized capital gains tax in 2028, while Germany and Portugal continue to exempt crypto held for over one year from capital gains taxation. Since January, the EU’s DAC8 framework has required crypto platforms to report user and transaction data to national tax authorities.

A senior finance ministry official acknowledged that estimating revenue from the new tax is challenging, as most Greek investors utilize platforms based abroad and the overall size of the domestic cryptocurrency market remains unclear.

For investors using offshore exchanges, obtaining reliable cost-basis data will be a key factor in enforcing the tax. The finance ministry plans to address this challenge with the upcoming implementation directives.

The rate is now set in law, but whether Athens can secure enforceable data from foreign platforms is a challenge for future regulatory guidance.

The post Greece approves 10% crypto capital gains tax, effective January 2027 appeared first on COINTURK NEWS.