Do you think a 10% tax on Bitcoin profits is fair for long-term investors?

[aNot!FicaT!on]

I saw a news today. Greek Parliament recently approved a new law imposing a 10% tax on profits earned from cryptocurrency. This is the first full-fledged legal framework on cryptocurrency taxation in the country. The new rule is scheduled to come into effect on January 1, 2027.

According to the new law, no tax will be paid if the net profit earned from crypto is up to €500 per year. However, if this limit is exceeded, a 10% tax will be applied to the entire net profit. And even if a product or service is purchased with Bitcoin, you may have to pay tax based on the profit calculation. On the other hand, if you just buy Bitcoin and hold it for a long time and do not sell it, you will not have to pay tax because its value increases.

However, not all European countries tax cryptocurrency at the same rate. For example, in France, the prevailing tax rate on crypto profits is about 30%, while in Greece it is kept at 10%, That is, they have a percentage 3 times lower than France. Other countries may also have different percentages..

Various countries are now trying to bring cryptocurrency under their existing tax system, I think that as cryptocurrency becomes more popular in the future, governments will also start taking more steps in this sector.

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,? And what is it like for crypto users? or will it discourage long-term investors?


https://bitcoinmagazine.com/news/greece-approves-10-crypto-gains-tax

What the levy covers for bitcoin holders
The tax is set to apply from Jan. 1, 2027, Greek coverage of the finance ministry bill says. It is levied on the net gain — the difference between the acquisition price and the transfer price — not on the full sale proceeds. Trading fees and other costs tied to the deal can factor into that calculation.

A taxable transfer is not limited to selling for euros. Using cryptocurrency to buy goods or services, or contributing it to cover or increase company capital, can also crystallize a gain under the new rules. That matters for anyone in Greece who pays a merchant in bitcoin rather than converting first.

Simply holding bitcoin while its euro value rises does not, by itself, create a tax bill. Crypto-to-crypto swaps, such as bitcoin for another token, are treated as non-taxable events in the explanatory material that accompanied the bill, matching the approach France has used to avoid taxing every hop between coins.

Net annual gains at or below €500 are exempt. Greek analyses of the text say that once net gains clear that ceiling, the 10% rate applies to the full net gain for the year, not only the slice above €500. Losses above €500 in a tax year may be carried forward for up to five years and offset only against future crypto capital gains.

Purchases of crypto assets are also being pulled into Greece’s existing “source of funds” checks from 2027, so buyers may need to show that the euros used to acquire bitcoin or other tokens came from declared income or other lawful capital. The rule does not add a separate purchase tax; it widens the audit trail around how coins were funded.

[Charles-Tim]

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,? And what is it like for crypto users? or will it discourage long-term investors?

Discourage them or they will go fully noncustodial and P2P without anything centralized in-between? Although, 10% tax on crypto profit is not a bad idea at all. In my country, it is 15% and up to 25% for individuals, but up to 30% for businesses.

The tax will not affect the crypto market.

I do not think it will discourage investors, but some people may prefer noncustodial and P2P because of it. Just to evade it.

[passwordnow]

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,?

If it's about the percentage tax rate, I think it's not that a lot. Compared to the other countries, they might have up to 30% or even higher. As long as there's no selling that's happening, there's no taxation. Because it's bs to charge taxes if someone who's holding for so long and never sold but the government mandates that tax even that holder is at loss atm. They're clear that it will only happen if the holder decides to sell whether they'll be in profit or loss as long as the transaction happened.

And what is it like for crypto users? or will it discourage long-term investors?

Maybe for the holders based on Greece it might discourage them and will relocate somewhere if they find this new taxation law unfavorable.

[Rashlyowl]

However, I would like to know how you view this decision?
Is a 10% tax on Bitcoin profits a reasonable rate? And is such a tax system good for the cryptocurrency market,? And what is it like for crypto users? or will it discourage long-term investors?

High taxes will certainly make investors think twice about investing in crypto, 10% in Greece & 30% in France are high taxes when compared to what we have in our country. In our country, the crypto tax system applies only to sell transactions, at a rate of 0.21%. Government does not care whether a profit or a loss is realized, all they know is whenever we sell, they are entitled to 0.21% of the proceeds.

[X-ray]

Fair or not depends on whether they enforce the same thing to stock, commodities, or other thing that could make capital gain. If they selectively enforce only to crypto, then it's not fair.

Frankly, every nation have their own rules and appetite for taxation, it's not as simple as whether they taxed your capital gain or not.

The more concerning thing is actually how they enforce the taxation, do they also enforce capital gain tax on payment that involves cryptocurrency?

Because that could potentially become a bigger problem.

[OcTradism]

Tax on profit, capital gain tax is fair enough but there are governments like the Dutch which proposed to tax citizens with Unrealized Capital Gain annually. That's more terrible for citizens than taxing on capital gains.

Dutch tax refugee: which country to move to?

If you want to pay less capital gain tax, you will have to immigrate to another nation.
https://www.globalcitizensolutions.com/crypto-tax-haven/

[pooya87]

While 10% is not the highest tax rate that exists but it is still not good for investors and traders who would have to constantly pay the government.

But a much more important question that needs to be asked in cases like this is: where does that tax money go?
The pain of having to give up part of your hard earned money is slightly more tolerable if you know that money is being spent building the country (eg. on healthcare, public transport, general services the government provide, the education, infrastructure, etc.), but it is not acceptable when it is being wasted, stolen/embezzled, and so on...
In Europe these days and specifically among NATO members the tax payers money is being wasted on NATO's warmongering and worst of all it is being used to fund various terrorist organizations such as al-Qaeda, Israel and ISIS.

In the current situation even 0.1% tax is extremely high and unacceptable.