Greece plans to impose a 10% capital gains tax on cryptocurrencies, according to a draft bill published for public consultation and cited by Reuters on Thursday. Annual crypto gains of up to €500, about $560, would be exempt under the proposal.
Reuters said Greece currently does not have a comprehensive legal framework for taxing crypto assets.
Lower than the rate discussed in June
The proposed 10% rate is below the 15% level that two government officials told Reuters was being planned in June. One of those officials said at the time that individual crypto mining would not be taxed, while mining carried out by registered companies would be.
Market size and revenue remain unclear
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. Reuters also reported that there is still no specific projection for the amount of revenue the tax could raise.
Crypto tax treatment varies across Europe
EU member states do not apply a single system for taxing crypto, and rates differ widely from one country to another. According to a law firm analysis cited in the report, Cyprus introduced a flat 8% tax on crypto gains for individuals and companies from January 1, while Ireland taxes those gains at 33%.
Italy raised its rate to 33% from 26% at the start of this year. Spain taxes crypto gains as savings income under progressive rates that go as high as 28%. Germany exempts gains on crypto held for more than a year, while the Netherlands taxes a presumed return on assets instead of realized gains.
DAC8 enters its first reporting period
According to the European Commission, EU rules known as DAC8 have required crypto service providers since January 1 to collect transaction data on users who reside in the EU. Tax authorities then exchange that information with each user’s country of residence. This year is the first reporting period under the rules.
The UK is taking a different route outside the EU
Outside the EU, the UK plans to defer capital gains tax on DeFi lending and liquidity pool deposits. Reuters also noted that 240 crypto millionaires accounted for more than half of the country’s taxable crypto gains.
Bill expected in parliament in November
The Greek bill is due to be submitted to parliament in November.