Italy Will Impose Crypto Gains Tax at 26% Starting in 2023
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Imposition of Crypto Gains Tax at 26%
Additionally, taxpayers will be able to report the value of their belongings starting on January 1, 2023. On these returns, they will be subject to a rate of 14%. This resembles the new crypto gains tax regulations that India was subjected to earlier this year. Before the higher tax rate went into effect, the Indian government permitted individuals to disclose their assets.
Up until now, foreign currency tax regulations, which are substantially laxer, have applied to cryptocurrencies. Investors in the nation will undoubtedly object to the tax rise since it would affect their capital gains. Cryptocurrency owners in Italy number 1.3 million, or 2.3% of the total population.
Tax Implied in Portugal
Although that number is far below what it is in some other European countries, it is evident that the administration intends to enact the regulations as soon as possible. Recently, a hefty tax rate of 28% was placed on cryptocurrency in Portugal.
The drive for crypto companies to seek licenses coincides with Italy's intensified examination of the cryptocurrency business. Gemini and Nexo, registered as virtual currency operators, have obtained licenses in the nation. Earlier this year, Binance, Coinbase, and Crypto.com were also permitted to conduct business in Italy. Exchanges and other cryptocurrency service providers must adhere to AML and anti-terrorist funding regulations in order to register. At the same time that the European Union (EU) is preparing to implement its MiCA legislation, these rules and registration are being implemented.