Compensation in Crypto: Taxation in Greece

As of today, there is no law in Greece regulating the taxation of capital gains from cryptocurrencies (since no law exists, we believe stablecoins are also treated as cryptocurrencies).

There is a commonly discussed theory, which we also support, that such gains should be taxed at 15%.

There are businesses that pay compensation in cryptocurrency. However, this practice is not related to the absence of a law on the taxation of capital gains, because such compensation will be treated either as business income or as employment income.

In both cases, when the cryptocurrency received as payment is held and not converted into fiat (e.g., euros), it is considered an investment. When sold later, the profit is treated as capital gain, for which — as mentioned earlier — no tax framework currently exists. We analyze this further below.

Business Income in Crypto

One option for receiving compensation in cryptocurrency is the creation of a sole proprietorship or a company that issues invoices to the paying party.

Payroll in Cryptocurrency

The other option is to be hired directly by the paying company.

If it is a foreign branch operating in Greece, the process is relatively simple and well-known.

However, if the company has no Greek presence, then in order to receive compensation in crypto, the individual must register a special employment status with the Greek Social Security Fund (IKA/EFKA), insure themselves, and also submit payroll withholding tax (FMY).

From our experience, this option is rarely chosen due to its complexity.

Critical Points

Regardless of the method used to receive income in crypto, certain important steps must be followed.

1. New crypto receiving address

It is essential to create a new wallet address specifically for receiving the cryptocurrency. During a tax audit, it must be clear which transactions are income and not mixed with other types of activity.

2. Existence of a contract

A written agreement between the two parties must exist to document the services provided.

3. Investment classification – The complex part

If you receive the compensation in crypto and do not convert it into fiat, it is automatically classified as an investment.

It is treated as if you received euros and immediately converted them into crypto. If you later sell the crypto, you generate capital gains (for which no tax law currently exists).

This occurs because for the Greek tax authorities, the taxable value of the compensation is always calculated in euros, regardless of the payment method.

A key question arises:

If I do not want the income to be treated as an investment, how quickly must I convert the crypto to fiat?

Due to the lack of a legal framework, a reasonable assumption is that if the conversion happens on the same day of receipt, tax authorities are unlikely to classify it as an investment.

Conclusion

Receiving compensation in cryptocurrency is a taxable event and cannot be disputed, whether it involves crypto or stablecoins. Therefore, one of the two methods must be applied.

As for holding crypto and treating it as an investment, given the absence of legislation, this is currently the most logical and safest approach.

About ACNT

ACNT covers every accounting and financial need for businesses and individuals, specializing in bookkeeping, tax preparation, and CFO services.

With over 35 years of experience and a team of seasoned professionals, we provide proactive support, accurate guidance, and high-quality solutions tailored to each client’s specific requirements.

We focus on the fields of cryptocurrencies and stocks, start-ups, construction companies, manufacturing businesses, and commercial/import-export enterprises.

We continuously stay updated on industry developments so you can focus on growing your business, confident that your tax and financial matters are in good hands.

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