Greece proposes a 10% tax on cryptocurrency capital gains and a tax exemption of 500 euros per year

Greece plans to impose a 10% capital gains tax on cryptocurrency profits, with an annual tax exemption of 500 euros.

The Greek government has proposed a draft 10% capital gains tax on cryptocurrency profits, which stipulates that annual income below 500 euros can be exempted from tax. The draft is currently in the public consultation stage and is expected to be submitted to the Greek Parliament for review in November.

Details of tax rate adjustments and exemptions

According to a draft bill released for public consultation later Thursday, the new tax will apply to cryptocurrency investment income that exceeds the annual tax exemption. Specifically, investors 'annual cryptocurrency capital gains of up to 500 euros will be exempt from the new tax; profits exceeding this exemption will be subject to the proposed 10% tax rate. Although the details currently disclosed do not clarify how this threshold will be applied, the measure is still draft in nature and has not yet become formal law.

Previous proposals had considered a 15% tax rate, but the latest draft reduces the proposed tax rate while retaining the annual exemption. However, the available information does not explain the reasons for the tax rate change or whether other provisions in the earlier plan have been revised.

Lack of a comprehensive legal framework and difficulties in income estimation

Greece currently does not have a comprehensive legal framework specifically regulating the taxation of cryptocurrency profits, and the treatment of digital asset investments does not yet have specific rules like many traditional financial assets. The proposed legislation aims to establish clear tax rates and annual exemptions, but the draft summary provided does not specify key tax issues such as how losses will be deducted, whether transfers between wallets are taxable, and how cryptocurrency transactions will be valued.

Since most domestic Greek cryptocurrency investors use trading platforms located abroad to trade, Greek officials have not yet estimated potential tax revenue. The government has not released estimates of the revenue that the proposed measure may generate, in part because of concerns about the difficulty of regulating cross-border platforms. As a result, authorities failed to establish a reliable assessment of the country's cryptocurrency market and were unable to calculate expected government revenue from the proposed tax.

Compliance requirements in the context of the EU DAC8 Directive

This Greek proposal comes as cryptocurrency reporting rules under the EU Administrative Cooperation Directive (DAC8) come into effect. DAC8 takes effect on January 1, 2026, and its core requirements include cryptocurrency service providers to collect customer and reportable transaction information, including customer identities, tax identification numbers, and specific transfer records involving external wallets.

The framework covers cryptocurrency exchanges and other eligible service providers serving EU residents. Even if investors use platforms that transcend national borders, reporting obligations for cryptocurrency transactions still apply. The first reporting cycle covers transactions conducted in 2026, and relevant information is expected to be exchanged between participating tax authorities in 2027.

It should be noted that DAC8 does not establish a unified capital gains tax rate for cryptocurrencies across the EU. Member states still retain the right to decide which cryptocurrency transactions are taxable and how much tax investors are required to pay. Currently, European countries adopt different methods to tax cryptocurrencies. The tax rate mentioned in the Greek proposal usually ranges from 8% to 30%, mainly targeting capital gains.

Different practices and challenges in European countries

Although DAC8 establishes common information exchange requirements, governments are still determining tax treatment and reporting obligations for cryptocurrency holdings. For example, the French Administrative Court previously rejected emergency requests from Bull Bitcoin and Paymium to suspend the implementation of the DAC8 decree on the grounds that security concerns about collecting and centralizing cryptocurrency customer information were not sufficient grounds for emergency suspension measures, and separate challenges to revoke the decree are still ongoing.

The Spanish Revenue Authority also clarified the handling of self-custodial wallets in September, confirming that when investors retain control of their private keys, cryptocurrencies held directly are not within the scope of Form 721 reporting, but assets held through foreign custodians will still need to be declared when conditions are met. In addition, if investors use a regulated cryptocurrency service provider, transfers involving self-custodial wallets may still be recorded under DAC8.

Meanwhile, the UK is preparing to receive more information under international reporting arrangements. According to UK Customs and Revenue, during the 2024 - 2025 tax year, 17,600 taxpayers reported taxable cryptocurrency gains worth £ 1.38 billion, of which 240 investors had a single gain of more than £ 1 million. British authorities are expected to start receiving cryptocurrency customer information in 2027 in accordance with international reporting rules.

As of the public consultation stage before the draft is submitted to Parliament, Greece has not provided estimates equivalent to domestic cryptocurrency investment income or expected tax revenue. The final fate of the draft still awaits the outcome of parliamentary review in November.