Newsletter

• The Greek Parliament has approved a 10% tax on the portion of annual net cryptocurrency earnings that exceed 500 euros (557 US dollars), and the relevant regulations are scheduled to come into effect from January 2027.
• Income from staking, crypto lending, and DeFi liquidity provision will be subject to a separate 15% tax.
• Parliamentary review warnings that, despite the government's indication of intent to grant exemptions, the wording of the bill may result in taxes being levied on exchanges between cryptocurrencies as well.

The Greek Parliament passed a bill on Thursday that imposes a 10% capital gains tax on profits from cryptocurrencies, meaning that the relevant policy has officially evolved from a proposal discussed in October to a law approved by legislators.

This measure also imposes a 15% tax on income from staking, crypto lending, and decentralized finance ( DeFi ).

The encryption provisions in this legislation are part of a broader package from the Ministry of Finance, which covers debt repayment, financial regulation, and government accounting. The new rules for taxation on crypto income are set to take effect on January 1, 2027.

Individual investors with an annual net crypto income not exceeding 500 euros (557 US dollars) will be exempted. However, once this threshold is exceeded, a tax rate of 10% will apply to the entire income, rather than only to the portion that exceeds 500 euros (557 US dollars).

For example, if an investor's net profit is 600 euros (669 US dollars), under the new tax rate, their tax liability would be 60 euros (67 US dollars), rather than 10 euros (11 US dollars). Typically, the rules calculate profits by subtracting the purchase cost from the value received upon disposing of crypto assets.

Selling Bitcoin for euros is a taxable event, but purchasing goods or services with cryptocurrencies may also be considered a disposition of assets. Investors need to keep transaction records to prove how much they paid for the assets and the value of those assets at the time of sale or consumption.

The profits obtained from staking, lending, and providing liquidity to the DeFi protocol will be treated differently. According to the Ministry of Finance, Greece will classify these returns as interest income and levy a tax of 15% on them.

If the loss on eligible cryptocurrencies exceeds 500 euros (557 US dollars), it can be carried forward for five years and used to offset future crypto earnings. The bill also provides investors with a 12-month window to voluntarily declare previously undisclosed crypto income. As long as the conditions are met and the tax is paid within 60 days after declaration, no late-filing penalties or interest will be charged.

This approval comes after a public consultation on the proposal in October. The tax rate proposed in the draft is 10%, which is lower than the 15% rate discussed by Greek officials in June.

Cryptocurrency exchanges remain a tax issue

The Athenian side stated that exchanging one cryptocurrency for another should not in itself trigger a capital gains tax. However, the wording approved by the legislators may not have clearly excluded this possibility as the government had envisioned.

A review by the parliamentary science services department noted that the bill uses broad wording that covers dispositions made in “exchange for consideration.” The review suggests that this description may include transactions between tokens, although the accompanying notes state that such exchanges should not generate taxable income.

Reviewers suggest including exemption clauses explicitly and recommend formulating clearer rules for transactions involving stablecoins and digital currency tokens. These details are important for traders who switch between different assets without converting them into fiat currency.

Greece is also preparing to implement the administrative rules required for this tax. A senior official from the Ministry of Finance told Reuters that guidelines regarding transaction transparency and tax audits will be issued in the coming weeks.

The government has not yet estimated how much revenue this tax will generate. Officials stated that it is difficult to measure the market size due to many Greek crypto investors using overseas trading platforms.