the Italian parliament approved On December 30th, a 26% tax will be implemented on cryptocurrency-related profits over €2,000.
This new law is part of the 2023 Italian budget. Budget describes cryptocurrencies as virtual representations of value, which can be held and transferred electronically via distributed ledgers.
However, he argues that cryptocurrencies are not for financial reasons. In particular, this document regulates crypto investment losses. All losses from crypto-oriented investments are always deducted from profits.
The budget also calls for €21 billion ($22.3 billion) in tax cuts to help the country’s various businesses and households with energy problems.
Additionally, the Italian government under Prime Minister Giorgia Meloni aims to encourage crypto owners to disclose their assets. To facilitate this, as of January 2023, a compliant owner can pay his 14% tax on his property instead of the purchase price.
Italian Government Seeks To Clarify Crypto Industry Regulations
A good set of regulations that can protect investors is the only way a country can become a cryptocurrency hub, according to Prime Minister Giorgia Meloni.
The government has confirmed its willingness to work with cryptocurrency exchanges to achieve this ambition. This encouraged companies such as: binanceGemini, and Nexo obtain domestic registration approval.
Beyond Italy, other European countries are also taking steps to raise taxes on cryptocurrency profits.Portugal a few months ago introduced 28% tax on all profits from cryptocurrencies. In addition, the Portuguese government will start taxing free cryptocurrencies, including airdrops, at 10% of him, and will start taxing cryptocurrency brokerage fees at an additional 4%.