As reported by the Greek daily paper Ekathimerini on July 15, the Greek government is taking decisive steps to incorporate cryptocurrencies and digital assets into its national tax framework. This initiative marks a significant development since, currently, these digital assets are not officially recognized by Greek authorities.
Formation of a Special Committee
A special committee is set to present its findings on cryptocurrencies and digital assets to the Ministry of National Economy and Finance by September. This committee’s insights will play a crucial role in shaping the forthcoming regulatory and tax structure for digital currencies in Greece.
By January 2025, it is expected that cryptocurrencies will be integrated into the Greek taxation system. Profits from trades involving crypto and other digital assets will be taxed as capital gains from the sale of securities at a rate of 15%. This proposed tax framework aims to bring clarity and structure to the crypto market within Greece.
The committee’s report will cover three primary areas:
- Definition and Classification: Establishing clear definitions and recording methods for all cryptocurrencies.
- Taxation Method: Outlining the specifics of how cryptocurrencies will be taxed.
- Monitoring and Compliance: Developing processes for the ongoing monitoring of crypto transactions.
Current State of Crypto Profits in Greece
Currently, due to the absence of specific legislation, profits from cryptocurrency in Greece are largely untaxed, with very few investors declaring earnings from such transactions. Notably, those exploiting this lack of regulation tend to be individuals with no formal employment or significant real estate holdings.
The crypto scene in Greece is particularly vibrant among investors around the age of 30, reflecting a broader global trend of younger demographics engaging more actively with digital currencies. Accountants and tax experts in Greece have noted a significant uptick in crypto transactions among this group.
Athens, the capital of Greece, has become a hotspot for crypto-related activities. The city hosted the ATHDAOx event for the second consecutive year, drawing four times the number of attendees compared to its inaugural year. This event underscores the growing interest and participation in the decentralized finance (DeFi) and cryptocurrency sectors within Greece.
Greek Stock Exchange and Blockchain Innovation
In a noteworthy development, the Greek stock exchange announced a collaboration with the Sui blockchain in April. This partnership aims to introduce a new fundraising mechanism within the Sui ecosystem. A representative from Sui highlighted that the Greek stock exchange’s Electronic Book Building system positions it at the forefront of global exchange innovations.
The Greek government’s move to tax cryptocurrency by 2025 represents a significant shift towards the formal integration of digital assets into the financial system. This change aims to harness the economic potential of these assets while ensuring compliance and fairness in taxation.
| Date | Event | Description |
|---|---|---|
| December 2023 | ATHDAOx Event | Significant increase in community engagement |
| April 2024 | Sui Blockchain Collaboration | Introduction of new fundraising mechanisms |
| July 2025 | Tax Implementation | Cryptocurrency profits to be taxed at 15% as capital gains |
Featured image credit: Weekend Wayfarers via Flickr
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