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Italy To Charge 26% Crypto Tax From 2023

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According to the new budget approved by Parliament on Thursday, crypto traders in Italy will face a 26% capital gains tax beginning in 2023.

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According to Reuters, the 2023 expansionary budget of Giorgia Maloni, the Italian Prime Minister, includes 

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21 billion euros ($22.3 Billion) in tax breaks for households and businesses facing the energy crisis.

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Italy, where crypto is still largely unregulated in Italy, has enacted a budget of 387 pages that legitimizes crypto assets. 

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The budget defines crypto assets as "a digital representation or value or rights which can be transferred or stored electronically using the technology distributed ledger or similar technology."

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The move by Italy (and Portugal) to introduce a capital gains tax on crypto is ahead of the European Union’s Markets in Crypto Assets regulation (MiCA).

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This regulation promises a licensing framework and strict operating requirements for all crypto-service providers in the 27-member bloc.

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If crypto trading gains exceed 2,000 euros per tax period, the 26% rate will apply. 

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The new bill provides an incentive to declare crypto profits.

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It also establishes a substitute income tax for investors at 14% of assets' value as of January 1, 2023, instead of the purchase cost.

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