Greece plans to impose a 10% tax on cryptocurrencies and set a 500 euro tax exemption

Current progress of the proposal

Greece has released the draft bill for public consultation and plans to be submitted to Parliament in November. The bill has not yet formally become law.

Core content and key shortcomings of the proposal

According to Reuters, Greece plans to impose a 10% capital gains tax on cryptocurrency gains and exempt gains within 500 euros per year. Because many Greek investors use overseas trading platforms, the size of the market is difficult to measure, and officials did not provide estimates of expected tax revenue.

This tax rate itself is easy to understand, but its correct application can be challenging. To determine taxable outcomes, capital gains tax needs to clarify rules about purchase prices, sales prices, transaction costs, and losses.

What is established in the draft

• imposes a 10% tax rate on cryptocurrency capital gains.
• Earnings up to 500 euros per year are subject to tax exemptions.
• is scheduled to be submitted to Parliament for review in November.

Matters that still need to be clarified in the final law

• How this exemption applies once the revenue exceeds 500 euros.
• How investors calculate acquisition costs and losses.
• Which crypto asset transactions constitute taxable events.

Details of the 500 euro tax exemption need to be clarified urgently

The proposal states that income up to 500 euros per year will be exempt from tax, but final legislation needs to clarify how this threshold operates. One method is to tax only the portion exceeding 500 euros; the other method is to regard 500 euros as a critical point, and once exceeded, all benefits will be included in the tax calculation.

The differences between these two methods are significant. For example, a person who earns 600 euros may pay only 100 euros in tax under the first method, while the full 600 euros will be calculated under the second method. Greece has not released enough details to inform taxpayers which method it intends to use.

Uncertainty is not limited to the € 500 cap. The bill also needs to first establish when crypto benefits exist.

Tax payable cannot be determined based on tax rates alone.

Transactions that convert bitcoin directly into euros are relatively easy to describe: the gain is usually sales revenue less asset acquisition costs, minus any allowed fees. However, before funds reach bank accounts, crypto activity often becomes more complex.

Final legal or supporting guidance needs to address issues such as how Greece handles losses from token-to-token transactions, stablecoin conversions, pledge rewards, airdrops, and early transactions. In addition, a way is needed to calculate the cost basis of assets purchased in batches at different prices.

Until the final text explains these transactions, taxpayers cannot determine whether specific cryptographic practices will generate taxable benefits under the new framework.

European reporting rules will make data chains clearer

Greece's proposal coincides with the EU's start of implementing a crypto asset reporting framework based on the DAC8 directive. The rules require regulated crypto asset service providers to collect and report information about specific customers and transactions, with the first reporting cycle covering activities in 2026, and reports should be submitted in 2027.

DAC8 provides a standard way for tax authorities to receive information about taxable crypto transactions. Greece's proposed law will determine how this information is incorporated into residents 'tax calculations. As a result, reporting rules and tax laws address different parts of the same compliance process.

For investors, record-keeping became even more important even before the Greek bill became law. It is often much easier to keep transaction confirmations, euro values at the time of the transaction, and expense records than to rebuild after years of activity across multiple platforms.

The 10% tax rate is lower than the figure first publicly proposed by Greece

Greek officials discussed a 15% crypto income tax with Reuters in June. The current draft consultation adopts a 10% tax rate while retaining the 500 euro tax exemption mentioned in previous reports.

This change makes the proposal appear less burdensome on paper, but Greece has not yet explained the reasons for the tax rate revision. In addition, the tax rate is at the lower end of the reporting range in European jurisdictions, where crypto income taxes vary significantly depending on holding period, income class and local exemption policies.

Investors should focus on the final wording rather than just the headline tax rate

For Greek residents, the current priority is to track the progress of the bill, rather than calculating taxes based on the title rate. The effective date, how 500 euros will be processed and rules for gains and losses will determine whether the final framework is simple or cumbersome in practice.

Until Parliament passes the final version, the proposal would be better seen as an important step towards a dedicated crypto tax system rather than a complete guide to the specific tax payable by individual investors.

This article is for reference only and does not constitute tax, legal or investment advice. Greek residents should consult a qualified tax professional before making a decision based on the proposed legislation.