Crypto taxes in Greece encompass various regulations, including a 15% capital gains tax on profits, income tax ranging from 9% to 44% on mining, staking, and payments, and a 22% tax rate for crypto-business-related earnings.

Greece is aligning with EU tax directives such as MiCA and DAC8, which are set to enhance crypto tax reporting standards. While these developments bring more uniformity across European countries, Greece’s local laws still dictate the taxation of crypto activities. It is crucial for both Greek residents and foreign investors to stay abreast of the tax rules set by the Independent Authority for Public Revenue (AADE) to avoid penalties and optimize tax liabilities.

This guide provides an in-depth overview of crypto taxation in Greece, covering capital gains tax, income tax, taxable events, and reporting requirements.

How Cryptocurrency is Viewed by AADE in Greece

In Greece, cryptocurrency is classified as an asset rather than legal tender. The AADE treats crypto transactions as akin to traditional investments, subjecting them to tax regulations applicable to asset investments. While Greece adheres to EU tax guidelines, local laws currently govern crypto taxation in the country, with potential changes anticipated as a result of EU directives.

Taxation of Cryptocurrency in Greece

Cryptocurrency transactions in Greece are subject to varying tax rates based on the nature of the transaction. The primary forms of taxation include capital gains tax, income tax, and business income tax.

Capital Gains Tax

Individual investors in Greece are liable to a 15% capital gains tax on crypto profits, while professional traders and businesses may face a 22% corporate tax rate on crypto earnings deemed as business income.

Income Tax

Earnings from mining, staking, and other crypto activities are treated as ordinary income in Greece, subject to income tax ranging from 9% to 44% based on income levels. Fair market value (FMV) of crypto at the time of receipt determines the taxable amount.

Calculating Crypto Taxes in Greece

Capital Gains Calculation

The formula for computing capital gains tax in Greece is: Capital Gains = Selling Price – Cost Basis. Different accounting methods such as FIFO and Average Cost Basis impact the tax liability.

Income Tax Calculation

Income from crypto activities is taxed based on FMV at the time of receipt. Calculating taxable income accurately is essential for compliance with Greek tax laws.

Taxable Events in Greece

Selling Crypto for Fiat

Profit from selling crypto for fiat currency is subject to a 15% capital gains tax in Greece.

Spending Crypto on Goods/Services

Using crypto to pay for goods or services incurs tax on the profit generated from the transaction.

Swapping Cryptocurrencies

Trading one cryptocurrency for another triggers a taxable event, with the difference in FMV taxed as capital gains.

Earning Crypto through Mining/Staking

Income from mining and staking activities is taxed as personal or business income in Greece.

Strategies to Reduce Crypto Tax Liability in Greece

1. Tax Loss Harvesting

Selling losing assets to offset gains can lower tax liabilities.

2. Holding Crypto Long-Term

Reducing trading frequency to defer tax obligations.

3. Deducting Expenses

Claiming deductions for expenses related to crypto transactions.

4. Gifting Crypto Strategically

Transferring crypto wealth to family members within tax-free limits.

5. Consulting a Tax Professional

Seeking guidance from tax experts to optimize tax strategies.

Penalties for Crypto Tax Evasion in Greece

Failure to report crypto income can result in penalties and fines, emphasizing the importance of compliance with Greek tax laws.

Reporting Crypto Taxes in Greece

Accurate reporting of crypto transactions to the AADE is essential to avoid penalties. Utilizing tools like Bitcoin.Tax can streamline tax calculations and ensure compliance with Greek tax regulations.