3.3 min read
Italy sets up 26% tax on Crypto
Written byEdna Buckley
December 1, 2022
- A 26 percent tax would be imposed on capital gains over 2,000 euros ($2,062) from cryptocurrency trading.
- This step comes after Bitpanda, Binance, and Gemini prioritized expanding in Europe this year.
- Part of the Italian government’s plan is for cryptocurrency investors to declare their holdings starting Jan. 1, 2022, and receive a lower interest rate of 14%.
Italy appears to be becoming the latest European country to benefit from the move of crypto companies to the region and plans to tax digital commerce.
In a proposal bundled with the country's 2023 budget, a 26 percent tax would be imposed on capital gains over 2,000 euros ($2,062) from cryptocurrency transactions.
Previously, the Italian tax system considered cryptocurrencies as foreign currencies.
This step comes after several global cryptocurrency companies prioritized expanding in Europe this year.
Bitpanda recently acquired a license to operate in Germany, adding it to its list of registered locations, which also includes Italy.
Meanwhile, Binance has registered as a digital asset provider in France, Italy, and Spain.
Gemini added five countries to its European footprint last month and announced yesterday that it had also received regulatory approval in Italy and Greece.
Portugal has announced a similar 28% tax on profits from the sale of digital assets held for less than a year, although longer-term holdings of cryptocurrencies may be tax-free.
Part of the Italian government’s plan is for cryptocurrency investors to declare their holdings starting Jan. 1, 2022, and receive a lower interest rate of 14%.
Crypto Taxes Around the World
Various jurisdictions have proposed a variety of approaches to taxing cryptocurrencies and NFTs as they balance the desire to foster innovation with preventing investors from evading tax authorities.
In early 2022, the UK tax authority first seized NFTs as part of a tax fraud investigation, saying it was a warning to anyone who "thinks they can use crypto assets to hide funds from HMRC [Her Majesty’s Revenue and Customs]. "
More recently, Costa Rica proposed removing almost all Bitcoin taxes in an effort to attract foreign investors and tech companies.
Elsewhere, India introduced a tax on all cryptocurrency transactions over the summer, prompting many domestic businesses to leave the country.
In the United States, the latest tax guidance states that taxpayers should pay capital gains tax when disposing of digital assets, and NFTs, cryptocurrencies, and stablecoins all fall into the same category.
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