Italy Plans To Tax Crypto Trading Gains at 26%

Lavina Daryanani
Source: NewsBTC

Italy seems to be on track to tighten regulations pertaining to digital assets and expand taxation on crypto trading from next year. Outlining the same, a recent report from Bloomberg revealed,

A provision in the country’s proposed 2023 budget plans to extend a 26% levy on capital gains to digital assets for profits larger than 2,000 euros ($2,062.3).”

Digital coins and tokens were being treated as foreign currency by Italy’s tax authorities until now. Hence it was subjected to comparatively lower taxation.

Investors encouraged to disclose HODLings

The report outlined,

The bill put forward by Prime Minister Giorgia Meloni’s government also gives taxpayers the option to declare the value of assets as of Jan. 1, 2023, paying a 14% tax.

Notably, the said option has been provided to encourage Italians to declare their HODLings of digital assets and file their tax returns. In fact, the proposed law, which could be subjected to parliamentary amendments, also includes disclosure obligations and extends stamp duty to cryptos.

Read More: Portugal Proposes A 28% Crypto Tax in its 2023 Budget

It is worth recalling here that another European country, Portugal, announced similar plans to tax crypto gains. In October this year, the Portuguese government proposed a 28% tax on capital gains for cryptos held for a period of less than a year. In fact, it also proposed a 4% taxation fee on free transfers of cryptos in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the crypto sector.

Alongside, Germany also took a similar stance pertaining to crypto taxation. It released new guidelines in Q2 2022 outlining clear income tax rules for virtual assets and crypto. Per the key takeaway, individuals who sold the likes of Bitcoin, Ethereum, and other currencies more than a year ago, were not liable for taxes on the sale if they realized a profit.