The Italian government has announced plans to tax capital gains from cryptocurrency trading at a rate of 26%. The tax would apply to gains of €2,000 or more. Previously, cryptocurrency was treated as a foreign currency by Italy’s tax regime. The proposal is part of the country’s 2023 budget.
Several global cryptocurrency businesses have expanded into Europe this year. Bitpanda recently landed an operating license in Germany. Binance has registered as a digital asset provider in France, Italy, and Spain. Gemini has secured regulatory approval in Italy and Greece. Portugal has already announced a similar tax of 28% on profits from selling digital assets.
The Italian government’s plans would let crypto investors declare their holdings as of January 1, 2022, and get a lower rate of 14%. Different jurisdictions have proposed a variety of ways of taxing cryptocurrency and NFTs. British tax authorities have seized NFTs as part of an investigation into tax fraud. Costa Rica has proposed nixing almost all taxes on Bitcoin. India’s tax on all crypto transactions has prompted many home-grown companies to leave the country. The latest tax guidelines in the US indicate that taxpayers should pay capital gains tax when they dispose of any digital asset.