Italy Will Begin Collecting 26% Crypto Gains Tax In 2023

Beginning in 2023, Italy will levy a 26% capital gains tax on cryptocurrency profits. Holders of cryptocurrencies will be obligated by the new law to pay 14% interest on their holdings and reveal them.

Bloomberg reports that starting in 2023, Italy would 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 declare the value of their assets as 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.

Up until now, foreign currency tax laws—which are more stricter—have applied to cryptocurrencies. Investors in the nation will undoubtedly be miffed by the tax increase because their capital gains will suffer. In Italy, 1.3 million people, or 2.3% of the total population, are cryptocurrency owners.

Although that number is far below what it is in some other European countries, it is clear that the government wants to enact the laws as soon as possible. Portugal, a nation where cryptocurrencies are very popular, recently imposed a strict tax rate of 28% on cryptocurrencies.

Italy has a quick registration process for crypto firms

Although numerous exchanges have been approved in Italy, there are concerns with the exchanges’ vetting process. This is crucial in light of the FTX collapse, which has heightened interest in establishing regulations.

Crypto companies just need to supply ten pieces of information to register as a virtual asset service provider. Although there are a few more stages, the registration procedure is normally rather simple.

As a result, numerous crypto exchanges, even smaller ones, have been given permission to operate in the nation. However, with the MiCA bill set to take effect in 2024, regulatory actions may soon pick up speed.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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