TLDR
- Greece plans to introduce a tax framework for cryptocurrencies and digital assets by January 2025
- A special committee will present findings on cryptocurrencies to the Ministry of National Economy and Finance by September 2024
- Profits from crypto and digital asset trades are expected to be taxed as capital gains at a 15% rate
- Currently, cryptocurrency gains are untaxed and unrecognized by the Greek government
- The new framework aims to define cryptocurrencies, establish taxation methods, and create monitoring processes
The Greek government is taking steps to regulate and tax cryptocurrencies and digital assets, which are currently unrecognized and untaxed in the country.
According to recent reports, a new tax framework is expected to be implemented by January 2025, marking a significant shift in Greece’s approach to the burgeoning crypto market.
A special committee has been tasked with studying cryptocurrencies and digital assets, and is set to present its findings to the Ministry of National Economy and Finance by September 2024.
This committee’s work will be crucial in shaping the upcoming regulations, focusing on three key areas: defining and recording all cryptocurrencies, establishing the method of taxation, and creating a monitoring process.
Under the proposed framework, profits from cryptocurrency and digital asset trades are expected to be taxed as capital gains from the sale of securities at a rate of 15%.
This move aims to bring crypto gains in line with other forms of investment income and close a loophole that has allowed some investors to avoid declaring their crypto profits.
The current lack of legislation has led to what the Greek government sees as exploitation of the system. According to local reports, very few investors are declaring profits from cryptocurrency transactions. Those who do are often described as:
“mainly unemployed individuals or taxpayers with no income but substantial real estate holdings.”
This situation has caught the attention of accountants and tax experts in Greece, who have observed an increase in crypto activity, particularly among individuals around the age of 30.
The push for regulation comes as Greece prepares for the full implementation of the Markets in Crypto-Assets Regulation (MiCA) across the European Union.
Until December 30, 2024, most crypto-related services in Greece will operate largely unregulated, with some exceptions. Companies exchanging cryptocurrencies for fiat money or offering custody services must register with the Hellenic Capital Market Commission (HCMC).
A transitional period from December 30, 2024, to July 1, 2026, will allow firms already registered with the HCMC to continue providing services without full MiCA authorization. After July 1, 2026, all crypto service providers must be fully authorized either in Greece or another EU member state, leading to stricter oversight and compliance requirements.
Greece has already implemented some anti-money laundering (AML) measures for crypto service providers. These include customer due diligence requirements, maintaining a centralized register of ultimate beneficial owners, and appointing an AML Compliance Officer.
The move to regulate and tax cryptocurrencies comes as the crypto scene in Greece is gaining momentum. Athens, the capital city, has seen an increase in crypto-related events and meetups.
In December 2023, the ATHDAOx event attracted four times as many attendees as it did in its inaugural year, indicating growing interest in decentralized finance and crypto initiatives.
The Greek stock exchange has shown interest in blockchain technology, collaborating with the Sui blockchain to deploy a new fundraising mechanism. This partnership places the Greek stock exchange “at the forefront of innovation […] in comparison to exchanges around the world,” according to a Sui representative.
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