Italy Will Tax Crypto Profits 26% From 2023

PNT

Dec 2, 2022•2 min read

Italy Will Tax Crypto Profits 26% From 2023

According to budget documents made public on December 1, Italy intends to impose stricter rules on digital currencies in 2023 by extending its tax laws to cover cryptocurrency trading.

From 2023 on, Italy will start taxing cryptocurrency capital gains at a rate of 26%. The tax levy is a suggestion made by the nation's legislators for its 2023 budget projections. The tax will only be charged on profits over EUR 2,000.

Additionally, taxpayers will be able to report the value of their assets starting of January 1, 2023. On these returns, they will pay a tax rate of 14%. This is comparable to the new tax regulations that India received earlier this year. Before the higher tax rate went into effect, the Indian government allowed the people to disclose their assets.

It appears that Italy is following Portugal. A 28% tax on capital gains on cryptocurrencies kept for less than a year was suggested by Portugal in October. Portugal was once regarded as a tax haven for cryptocurrencies.

The Portuguese government addressed the taxation of cryptocurrencies in its 2023 state budget, which had previously been ignored by tax officials due to the fact that digital assets were not recognized as legal tender.

Several exchanges registered in Italy

The Italian government is looking more closely at the cryptocurrency business and wants crypto companies to get licenses. Gemini and Nexo, who have registered as virtual currency operators, have obtained licenses in the nation. Earlier this year, Binance, Coinbase, and Crypto.com were also given permission to conduct business in Italy.

Exchanges and other cryptocurrency service providers must comply with AML and counter-terrorist funding legislation in order to register. These laws and registrations come at a time when the European Union (EU) is set to institute its MiCA laws.

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