The Greek parliament officially passed legislation on Thursday imposing a 10% capital gains tax on profits from trading crypto assets. The new provision is part of a legislative package by the Greek Ministry of Finance governing public debt management and financial oversight, scheduled to take effect on January 1, 2027.
The policy distinguishes between standard trading gains and yields generated from decentralized finance protocols, while establishing a strict threshold for individual investors.
Different Rates for DeFi and Profit Thresholds
A tax-free threshold is set for annual net profits of €500 (equivalent to $557) or less for individual investors. This threshold operates strictly: if net profit exceeds €500, the 10% tax rate applies to the entire profit, not just the amount above the threshold.
Yields from staking, crypto lending, and liquidity provision on decentralized finance (DeFi) protocols receive different treatment. Parliament set a 15% tax rate on all earnings from these activities, classifying them as interest income.
Tax liabilities arise from two main events: selling crypto assets for euros and directly spending crypto to pay for goods or services.
Loss Offset and 12-Month Declaration Window
Crypto investment losses exceeding €500 can be carried forward and offset for up to five years. This loss-offset mechanism is designed to reduce the tax burden on future profits.
Investors are required to maintain detailed transaction records to verify their cost basis and market valuation when digital assets are disposed of or spent.
Taxpayers with historical asset holdings will have an opportunity to report them through a 12-month voluntary declaration window. This reporting scheme waives interest penalties, provided the tax liability is settled within 60 days of filing the report.
Terminology Concerns and Technical Guidelines
A review by the Greek Parliament’s Scientific Service warned of ambiguity surrounding the term disposals for consideration. This phrasing could potentially capture token-to-token swaps and stablecoin transactions, even though the government intended to exempt them from tax liabilities.
The Greek Ministry of Finance is scheduled to issue detailed technical guidance in the coming weeks. The forthcoming document will outline transaction reporting transparency rules and practical tax audit procedures.
For crypto market participants in Greece, the lead-up to early 2027 provides a crucial window to organize wallet records before formal audit mechanisms take effect.
Via Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
