On Thursday, the Greek parliament approved a bill introducing a 10% tax on capital gains from cryptocurrency transactions. Cryptocurrencies are highly volatile.
Tax rate and exemption up to €500
The law sets a 10% rate on capital gains from cryptocurrency transactions. Capital gains up to €500 per year are exempt from the new tax.
The text states that €500 is equivalent to $563. This is defined as the annual non-taxable threshold for individuals.
Guidance and revenue forecasts
“In the coming weeks additional guidance on implementation will be published, which will also set out rules on transparency and audit,” a senior official of the Ministry of Finance said. The guidance is expected to detail the practical mechanisms for applying the tax.
It is currently impossible to forecast the revenue to the state budget from the new tax, as the vast majority of investors use foreign platforms, making it difficult to assess the true size of the Greek crypto market. This complicates estimates of potential fiscal receipts.
Position of the National Bank of Ukraine (NBU) and taxation practices in the EU
Previously, the National Bank of Ukraine (NBU) had supported regulation of the virtual assets market based on the EU’s Markets in Crypto-Assets (MiCA) framework, international standards and recommendations of the International Monetary Fund. The NBU also warned of risks to monetary sovereignty, price and financial stability, and the country’s economic security.
There is no unified system for taxing cryptocurrencies in the EU: tax rates in different countries vary from 8% to 30%, and typically it is capital gains that are taxed. Greece’s law is described as the country’s first comprehensive legislative framework for taxing crypto assets.
