In Italy, there are approximately 1.3 million people with digital assets, representing 2.3% of the population. Until now, the applicable tax laws on cryptocurrency transactions in the country are foreign currencies. With them, withdrawals from the gains of crypto traders are quite bearable. But the Italian government has recently made a decision that will definitely not benefit crypto investors.
A 26% tax on trading profits
In a recent article, Bloomberg revealed that Italy plans to tax crypto trading profits. A provision in the country’s draft 2023 budget states that the tax rate will be 26%. The tax applies to sales profits in excess of €2,000, or approximately $2,062.3.
The bill that includes this measure was presented to the government by Italian Prime Minister Giorgia Meloni. It can be changed by Parliament as part of its approval process. In addition, it stipulates that consumers can declare their crypto holdings from January 1, 2023.
Citizens who do so will only pay a 14% tax on their declarations. This move aims to encourage Italian taxpayers to include their crypto holdings in their tax declarations. In addition, the bill expands stamp duty on digital assets.
Will Italy try to follow Portugal?
The 26% tax on crypto trading gains in Italy comes after Portugal announced a similar measure. In fact, in the month of October, Portugal presented a plan for the short-term taxation of digital assets. Despite being one of the most crypto-friendly countries in Europe, it sets the 28% tax.
At the same time, the Indian government also chose to propose new stricter tax laws. He announced his decision earlier, offering taxpayers the option to file their returns sooner. Thus it gives 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 went bankrupt. So they seem to have been encouraged by the recent wave of spectacular collapses in the new industry.
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Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my motivation. So I decided to study and understand the blockchain and its many uses and relay the information in my pen related to this ecosystem.