The Rise of Cryptocurrency Trading in Greece
There has been a growing trend of Greeks, particularly those around the age of 30, getting involved in trading cryptocurrencies and digital assets. This has posed challenges for both individuals looking to invest in this new market and tax authorities, who currently do not have a clear framework for taxing these transactions.
New Tax Regulations on Cryptocurrencies
A special committee has been established to address this issue, and it is expected to present its recommendations to the Ministry of National Economy and Finance by September. It is anticipated that starting from January 2025, cryptocurrencies will be subject to taxation, with profits being taxed as capital gains at a rate of 15%.
The committee’s findings will focus on three main areas: defining and documenting all cryptocurrencies, determining the method of taxation, and establishing a monitoring process to ensure compliance with the new regulations.
Currently, the lack of clear guidelines on taxing cryptocurrency profits has led to many investors taking advantage of the loophole, while only a small percentage of individuals are declaring their earnings from these transactions.
The impact of currency devaluation on individuals
When a country experiences currency devaluation, it can have a significant impact on individuals. Those most affected are typically individuals who rely on fixed incomes or savings denominated in the devalued currency. These individuals may see a decrease in their purchasing power as the cost of imported goods and services rises.
Another group that can be heavily impacted by currency devaluation are those who hold debts in a foreign currency. As the value of the local currency decreases, the amount of debt they owe increases, making it harder for them to repay their loans.
Additionally, individuals who hold assets denominated in a devalued currency may also see a decrease in their wealth. This can be particularly challenging for individuals who are unemployed or have no income, but own substantial real estate. They may struggle to cover their living expenses as the value of their assets diminishes.