Italy has proposed a 26% capital gains tax on digital assets for profits above 2,000 euros (USD 2,062.3), according to a report by Bloomberg. Part of the proposed legislation, subject to the Italian parliament’s approval, includes a stamp duty on the asset class.
The proposal includes an option to pay 14% for the eligible individuals who declare their holdings before January 1, 2023 – a step aimed to encourage more disclosures among the Italian investors.
Italy will impose a fixed tax rate of 26% on profits from digital assets to investors – whose cumulative crypto holdings were more than 51,645.60 euros ($54,000) for over seven consecutive days during the tax year – if the proposal gets the parliamentary approval.
Italy Joins Portugal In Taxing Digital Assets
The Italian government led by Prime Minister Giorgia Meloni is hopeful that the new proposal would help to net the fast-growing digital asset adoption. According to data provided by Triple A, about 2.3% of the Italian population, or 1.3 million people, own cryptocurrencies. Similar steps have been taken by Portugal – another European country that recently changed its tax-friendly crypto policies to include a 28% tax deduction.
At the same time, Italy is keen to attract more players in the cryptocurrency space. Cryptocurrency exchange Gemini was recently registered as a Virtual Currency Operator and custodial wallet provider by the Italian Organismo Agenti E Mediatori. Binance, Coinbase, and Crypto.com are other exchanges licensed to offer crypto services in the island nation.
The licenses were issued considering anti-money laundering laws and the curbing of fraudulent transactions. Notably, the European Union (EU) plans to roll out MiCA legislation in 2024.
