Greece moves to tax crypto gains at 10%, with a penalty-free year to declare old profits

Greece plans to tax profits from cryptocurrency at 10%. A draft bill from the Ministry of National Economy and Finance, published for public consultation on Thursday, October 8, sets that rate for individuals' gains from transferring crypto assets, Reuters reported, according to CoinDesk and Decrypt. Gains of up to 500 euros a year, about $560, would be exempt.

Greece has had no comprehensive framework for taxing crypto, according to Reuters. The rate is lower than the 15% that government officials described in June, Decrypt noted.

Greek outlets that read the draft gave more detail. Selling crypto for money or spending it on goods and services counts as a taxable transfer, according to the tax news site Taxheaven. Swapping one crypto asset for another does not create a taxable gain, CNN Greece reported. Income from lending, providing liquidity and staking would be taxed as interest. Losses above 500 euros could be carried forward for five years and set against future crypto gains.

There is also a way to settle the past. Anyone who sold crypto before the rules take effect could declare the gain within 12 months of the law being in place, pay the 10% and face no penalties or interest, both outlets reported.

The bill is due to go to parliament in November. Officials have published no revenue estimate, and Reuters reported that the market is hard to size because most Greek investors use platforms based abroad.