Greece imposes heavy taxes on undocumented cryptocurrency transactions

Two recent decisions by the Dispute Resolution Directorate of the Independent Authority for Public Revenue (AADE) in Greece highlight strict tax enforcement regarding cryptocurrency transactions. When the origin of bank credits cannot be sufficiently documented as investment activity, authorities may classify the funds as wealth increases from unknown or unjustified sources.

In one notable case (Decision 851/2026), a taxpayer failed to prove that an 18,000 euro bank credit was a return of capital from liquidated cryptocurrency. Consequently, the amount was taxed at a special rate of 33%, plus a 50% penalty for inaccurate declaration. This resulted in a total burden of 8,910 euros, effectively a 49.5% charge on the original amount.

A second decision (1170/2026) involved credits via the Skrill electronic wallet. In both instances, the lack of evidentiary documentation for cryptocurrency-related transactions led to the application of the 33% tax rate and subsequent penalties. Taxpayers are advised to provide comprehensive proof of the origin of funds to avoid these significant financial consequences.