Greece is looking to impose a 10 per cent capital gains tax on cryptocurrency sales, according to Reuters.

Under the tax change, which the newswire said have been put forward in a draft proposal, capital gains tax will be applied to cryptocurrency gains of over €500 per year.

Reuters added that the bill is set to be debated in the Hellenic Parliament from November.

The European Union currently lacks a unified approach to taxing cryptocurrencies, with rates varying widely depending on the tax jurisdiction and according to specific taxable conditions being met.

If implemented, the new tax could help the Greek government to achieve a better understanding of its cryptocurrency market, with users often holding cryptocurrencies on international marketplaces over which the state has no direct oversight.

France and Sweden impose a 30 per cent flat tax on crypto gains and Portugal imposes a 28 per cent capital gains tax on crypto but only if it is held for less than a year.

Other European states take a stepped or progressive approach: Italy applies a 26 per cent capital gains tax on crypto profits of more than €2,000 per year, while Spain ramps crypto taxes from 19 per cent on profits above €6,000 to 30 per cent on profits above €300,000.

In the UK and US, crypto gains are taxed based on the holder’s income tax band. The UK taxes crypto profits above £3,000 at 18 per cent for those on the basic rate of tax and 24 per cent for those on the higher rate.

The Digital Asset Market Clarity Act, a Republican-backed bill that would set out a clearer regulatory framework for cryptocurrencies, failed to advance in the US Senate last month as four Republicans and all Democrats in the chamber voted it down.

Major criticisms of the bill included concerns over the efficacy of its ethical provisions, with opponents arguing it does not do enough to prevent public figures and their relatives from holding cryptocurrencies.

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