Greece is taking steps to integrate digital assets into its tax framework by introducing a 15% levy on cryptocurrency profits. The move aims to address the existing regulatory gap surrounding virtual currencies in the country. According to sources, the Ministry of Finance is crafting legislation that will impose this tax on gains from crypto investments, marking a significant shift in policy.
The draft law, which could be presented to parliament within the next few months, includes an exemption for the first €500 in profits, ensuring smaller investors are not burdened. Officials noted that the measure targets capital gains rather than mining activities, except when mining is conducted by registered entities, which remain subject to standard taxation.
This proposal places Greece alongside other nations seeking to enhance tax collection from crypto activities. Across Europe, tax rates on digital assets vary widely, from 8% in Cyprus to 30% in France, with most focusing on capital gains. By adopting a moderate rate, Greece aims to strike a balance between encouraging investment and generating revenue.
Challenges remain, however, as many Greek investors use foreign trading platforms, making it difficult to assess the true size of the domestic crypto market. Authorities have not yet estimated the potential revenue from the new tax. Nonetheless, the initiative reflects a broader global trend toward regulating and taxing digital assets.
Recent developments in other jurisdictions highlight the diverse approaches being taken. In Israel, a voluntary disclosure program for crypto holders has seen limited uptake, with only about $50 million in assets reported against a hoped-for $1 billion. Meanwhile, Illinois has advanced a plan to tax crypto transactions at 0.2%, sparking opposition from industry groups who argue it could harm the sector. These examples underscore the evolving landscape of crypto taxation as governments seek to close compliance gaps.