Understanding Crypto Gains and Taxation in Greece

As cryptocurrencies continue to rise in popularity, many countries have developed specific tax regulations to address the growing use of digital assets. Greece is no exception, with a tax framework in place to regulate how cryptocurrency gains are taxed. Understanding the tax implications of trading, investing, or earning income through cryptocurrencies is crucial for anyone involved in the crypto market in Greece.

In this article, we will explore how crypto gains are taxed in Greece and provide clarity on the country's approach to crypto taxation.

Greece’s Crypto Taxation Framework

Greece has adopted a relatively clear tax policy on cryptocurrency, especially for those trading or profiting from digital assets. The Hellenic Tax Authority (HTA) is responsible for enforcing tax regulations related to cryptocurrencies, and it classifies crypto assets under the broader category of capital assets.

Taxation of Crypto Gains in Greece

1. Crypto Gains Tax: Capital Gains Tax (CGT)
   • Individuals: In Greece, the taxation of cryptocurrency gains primarily falls under capital gains tax for individuals. Any profits derived from the sale or exchange of cryptocurrencies such as Bitcoin, Ethereum, or other digital currencies are taxed as capital gains.
   • The tax rate on crypto gains for individuals varies depending on the amount of the gain. For capital gains derived from cryptocurrency sales, the tax rate is currently set at 15%.
   • For example, if you bought Bitcoin for €5,000 and sold it for €12,000, your capital gain of €7,000 would be taxed at 15%. This rate applies whether you are trading on a crypto exchange, selling crypto for fiat money, or converting between cryptocurrencies.
2. Taxable Events
   • A taxable event occurs when there is a realization of profit. In other words, crypto transactions such as selling or exchanging cryptocurrencies result in a taxable event. Additionally, conversions between cryptocurrencies (e.g., swapping Bitcoin for Ethereum) may also be subject to capital gains tax, as this is seen as a realization of profit.
   • Holding cryptocurrencies is not considered a taxable event in Greece. Therefore, if you are holding digital assets without selling or trading them, you are not required to pay taxes until you realize a gain by selling or exchanging the assets.
3. Tax Rate for Capital Gains
   • As mentioned, the tax rate for capital gains on crypto assets is 15% for individuals. However, this can vary depending on changes in tax laws or adjustments to the national tax policy.
   • It's important to note that the Greek tax system is progressive, so if your total taxable income exceeds certain thresholds, the tax rate could change. While the base rate for crypto gains is 15%, additional earnings or activities may be subject to higher rates, as is the case with other forms of investment income.

Income Tax for Crypto Activities

1. Mining and Staking
   • In Greece, income generated from activities like mining and staking is considered business income. Mining involves the creation of new coins through proof-of-work (PoW) algorithms, while staking involves locking up coins to support a blockchain network.
   • If you mine or stake cryptocurrencies, the income you receive from these activities is subject to income tax. For tax purposes, mining and staking rewards are considered self-employment income, and you must report the earnings on your tax return.
   • Tax Rates: The income tax rate on crypto earnings from mining or staking depends on the amount of income and is subject to the progressive personal income tax brackets in Greece. The tax rate can range from 9% to 44%, based on your total taxable income.
2. Crypto Income from Other Activities
   • Similarly, if you earn income from lending or yield farming in decentralized finance (DeFi) platforms, this income is treated as business income and taxed accordingly. Any earnings you receive from lending or providing liquidity are also subject to income tax.

Tax Filing and Reporting Crypto Gains in Greece

1. Reporting Crypto Gains
   • If you are an individual or business involved in cryptocurrency trading, you are required to report your crypto gains and income when filing your annual tax return. The tax authorities in Greece use a form known as E1, which is the personal income tax declaration form.
   • You need to report your capital gains from the sale or exchange of cryptocurrencies as part of the overall declaration. The reported gains will then be taxed according to the applicable rate (15% for individuals).
2. Maintaining Records
   • Taxpayers are required to maintain accurate and detailed records of all crypto transactions, including the date of purchase, sale price, and transaction fees. Having these records will help ensure that you correctly calculate your taxable gains and avoid any issues with the tax authorities.
   • Documentation related to crypto activities, such as wallet addresses, transaction IDs, and exchange records, should be kept for a minimum of five years, in line with Greek tax regulations.

Crypto Businesses in Greece

For businesses involved in cryptocurrency-related activities (such as crypto exchanges, payment processors, and blockchain-based services), Greece applies the same general tax rules as for other companies operating in the country.

• Corporate Tax: Crypto businesses are subject to corporate tax, which is generally set at 22% in Greece, with the possibility of deductions and allowances depending on the nature of the business.
• VAT: Greece, in line with the EU, does not apply Value Added Tax (VAT) on cryptocurrency transactions. This means that the exchange of cryptocurrencies is not subject to VAT, which is a significant advantage for businesses dealing in digital assets.

Taxation for Foreign Investors in Greece

1. Non-Resident Investors
   • Greece generally does not impose tax on capital gains from foreign investors who do not reside in Greece. However, if you are a tax resident in Greece (i.e., you spend more than 183 days a year in the country), you will be subject to the country's tax laws, including the taxation of cryptocurrency gains.
   • If you're an international investor, it's essential to determine your tax residency status, as this will affect whether or not you need to report and pay taxes on your crypto profits.
2. Double Taxation Treaties
   • Greece has signed double taxation treaties with several countries to avoid taxing the same income twice. If you are a foreign investor paying taxes on crypto gains in your home country, you may be able to apply for relief from double taxation in Greece, depending on the treaty agreements between the two countries.

Spendo.com: Simplifying Crypto and Fiat Management in Greece

For Greek residents looking to manage both their fiat and crypto assets efficiently, Spendo.com offers a user-friendly platform that combines crypto trading with traditional finance tools. Through Spendo, you can manage your cryptocurrency investments with a personal EU virtual IBAN and a debit card linked to both fiat and cryptocurrency.

Spendo provides a seamless way to fund your account with EUR or digital currencies, trade crypto with ease, and spend globally, all while benefiting from low fees and high security. Whether you're trading, spending, or holding digital assets, Spendo offers flexibility and control over your finances.

Conclusion

In Greece, cryptocurrency gains are primarily subject to capital gains tax for individuals, set at 15% for the profits realized from the sale or exchange of digital assets. Income generated from activities like mining, staking, and lending is treated as self-employment income and taxed according to the personal income tax system, with rates ranging from 9% to 44% depending on the total earnings.

The Greek tax authorities require crypto investors and businesses to report their crypto-related income and capital gains in their annual tax filings. While Greece is relatively favorable for individual investors, businesses and professional traders should be aware of the taxation rules that apply to their specific activities.

For Greek residents seeking an easy way to manage both fiat and crypto assets, Spendo.com offers an efficient and secure platform, making crypto transactions more accessible and flexible.

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