In Italy, there are approximately 1.3 million people with digital assets, which represents 2.3% of the population. Until now, the applicable tax laws on cryptocurrency transactions in the country were those of foreign currencies. With them, the withdrawals from the gains of crypto traders were relatively bearable. But the Italian government has just made a decision that will certainly not benefit crypto investors.
A 26% tax on trading gains
In a recent article, Bloomberg revealed that Italy is planning to impose a tax on crypto trading gains. A provision in the country’s draft 2023 budget states that the tax that will be levied is 26%. The tax will apply to trading profits over €2,000, or approximately $2,062.3.
The bill that includes this measure was presented by the government of Italian Prime Minister Giorgia Meloni. It can be amended in Parliament as part of the process of its approval. In addition, it stipulates that consumers will be able declare their crypto holdings from January 1, 2023.
Citizens who do so will only pay a 14% tax on their declarations. This measure aims to stimulate Italian taxpayers to include their crypto holdings in their tax declarations. Additionally, the bill extends stamp duty to digital assets.
Would Italy try to follow Portugal?
The 26% taxation of crypto trading gains in Italy comes after Portugal announced a similar measure. Indeed, during the month of October, Portugal presented a plan for the short-term taxation of digital assets. Despite being among the most crypto-friendly countries in Europe, it has set the 28% tax.
At the same time, the Indian government has also chosen to propose new stricter tax laws. He announced his decision some time ago, offering taxpayers the option to file their returns sooner. It thus granted time for Indian investors to declare their crypto holdings before the effective application of a high tax.
India, Portugal and Italy have decided to apply stricter rules when it comes to crypto regulation. The 3 countries made their decision in a context where major crypto companies are going bankrupt. So it seems that they have been encouraged by the recent wave of spectacular collapses in the new industry.
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Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.