TLDR: Greece Prepares to Tax Crypto Profits by 2025
Greece is set to introduce a tax framework for cryptocurrencies and digital assets next year, with profits from crypto trades expected to be taxed as capital gains at a 15% rate. A special committee will present their findings to the Ministry of National Economy and Finance by September 2024, aiming to define cryptocurrencies, establish taxation methods, and create monitoring processes.
The Greek Government’s Move Towards Crypto Regulation
The Greek government is taking significant steps to regulate and tax cryptocurrencies and digital assets, which are currently not recognized and untaxed in the country. This shift in approach marks a crucial development in Greece’s stance on the growing crypto market.
- A new tax framework is expected to be implemented by January 2025
- A special committee is studying cryptocurrencies and digital assets
- Findings will be presented to the Ministry of National Economy and Finance by September 2024
Proposed Taxation and Regulation
Under the proposed framework, profits from cryptocurrency and digital asset trades are anticipated to be taxed as capital gains at a rate of 15%. This move aims to align crypto gains with other investment income and prevent investors from avoiding declaring their profits.
- Expected taxation rate of 15%
- Closing a loophole that allows investors to avoid declaring crypto profits
- Bringing crypto gains in line with other investment income
Current Exploitation of the System
The lack of legislation around cryptocurrencies has led to what the Greek government views as exploitation of the system. Few investors are declaring profits from crypto transactions, with those who do often categorized as unemployed individuals or taxpayers with substantial real estate holdings.
- Exploitation of the current system
- Lack of declarations around crypto profits
- Mostly unemployed individuals or taxpayers with real estate holdings
Regulation and Compliance Implementation
Greece is gearing up for the full implementation of the Markets in Crypto-Assets Regulation (MiCA) in the coming years. A transitional period will allow registered firms to continue operating until full MiCA authorization is required, leading to stricter oversight and compliance measures.
- Full implementation of MiCA on the horizon
- Transitional period for registered firms
- Stricter oversight and compliance requirements
Hot Take: Greece Makes Moves to Officially Tax Crypto Gains
As Greece prepares to introduce a tax framework for cryptocurrencies and digital assets, the country is taking significant steps to regulate and monitor the growing crypto market. By implementing these changes, Greece aims to close loopholes, align crypto gains with other investment income, and prevent exploitation of the current system.
Sources:
1. Ekathimerini – Crypto Profit Taxation
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