Cryptocurrency Taxation in Greece

Aug 24, 2023

In the realm of investments, cryptocurrencies have emerged as a unique and dynamic asset class. However, just like any other form of investment, cryptocurrencies are subject to taxation. Navigating the complexities of cryptocurrency taxation can be challenging, especially given the evolving regulatory landscape. This is where our legal firm steps in – to provide you with the guidance you need regarding the taxation of cryptocurrencies in Greece.

Understanding Cryptocurrency Taxation

For individuals who have invested in cryptocurrencies such as Bitcoin, Ethereum, Solana, and other altcoins, it's crucial to comprehend how these digital assets are taxed. While the specific taxation framework for cryptocurrencies hasn't been legislatively defined in Greece yet, there are certain principles that can guide us.

If you've acquired cryptocurrencies with the intention of speculative investment rather than regular transactions, they are considered akin to securities or titles. Consequently, when you file your tax declaration, you should report them as the acquisition of titles. As for the tax rate on cryptocurrency gains, if you buy and sell cryptocurrencies at a profit, the gains are subject to a 15% tax rate. For instance, if you invest €10,000 in Bitcoin and eventually sell it for €15,000, the €5,000 profit would be taxed at a rate of 15%.

Value Added Tax (VAT) Implications

When it comes to Value Added Tax (VAT), there's an EU decision that exempts cryptocurrency transactions from VAT. This means that when you engage in transactions involving cryptocurrencies, you won't be subjected to VAT, creating a level playing field with traditional fiat currencies.

Accounting for Cryptocurrency Transactions

For businesses and enterprises engaging in cryptocurrency transactions, proper accounting and reporting are essential. The 104/2018 opinion of the Accounting Standards Board (SLOT) provides valuable insights into the accounting practices for cryptocurrency-related activities. This opinion covers various aspects, including:

Cryptocurrency Mining: If your business is involved in cryptocurrency mining activities, it's crucial to accurately record the value of mined coins as they are obtained.

Cryptocurrency Sales: When selling cryptocurrencies, the gains or losses incurred should be meticulously documented and included in your financial records.

Cryptocurrency Purchases and Exchanges: Transactions involving the acquisition or exchange of cryptocurrencies should be tracked and reported according to AADE guidelines.

As the cryptocurrency landscape continues to evolve, taxation practices are also adapting to accommodate this emerging asset class. While Greece may not have a fully defined regulatory framework for cryptocurrency taxation, the principles mentioned above offer a foundational understanding of how cryptocurrencies are currently treated in terms of taxation. However, due to the dynamic nature of the cryptocurrency space, it's advisable to consult legal and financial experts to ensure compliance with the latest regulations and to make informed decisions regarding your cryptocurrency investments. Our legal firm stands ready to assist you in navigating these uncharted waters and making sound choices in the realm of cryptocurrency taxation.