As investments in digital assets grow, Greek cryptocurrency investors continue to navigate uncharted tax waters. The lack of a comprehensive framework for declaring gains creates significant hurdles, as highlighted by a recent decision from the Dispute Resolution Directorate (ΔΕΔ).
The €620,000 Bitcoin Blockade
Decision 2407/2026 by the ΔΕΔ rejected a taxpayer's appeal to declare profits of €620,323.34 from Bitcoin transfers under code 659 of the E1 form. This specific code is reserved for income that is either tax-exempt or subject to special taxation methods.
According to the case details:
- The funds originated from two remittances (€357,643 in July 2024 and €262,679 in September 2024).
- The taxpayer provided company certifications and remittance notices.
- The ΔΕΔ ruled that there was no proof the gains fell under a category with special taxation or exemption, meaning the amount could not be used to cover presumptive expenses (tekmiria).
The Challenge of Asset Acquisition
The absence of clear rules makes it extremely difficult to use crypto gains for purchasing real estate or other assets that require justification of capital origin. Experts note that even if funds pass through the banking system, tax authorities may not accept them as legitimate coverage for presumptive spending due to the existing legislative gap.
The Ministry's Proposed Framework
The Ministry of National Economy and Finance is drafting legislation expected to end this uncertainty. Although the bill has not yet been submitted to Parliament, the main pillars include:
- 15% Capital Gains Tax: Tax will be applied to the difference between the purchase and sale price, after deducting related expenses.
- Tax-Free Threshold: An annual tax-free limit of €500 is planned for small capital gains.
- Recognition as Assets: Crypto-assets will be officially recognized, allowing proceeds to be used to justify the origin of funds and cover presumptive living and acquisition expenses.
