If you want to trade cryptocurrencies and live in Italy, this might not come as good news to you. The regulations are getting stricter and crypto trading will now attract heavier taxations from the government.
Yes, there is a bright side to this too if you consider the fact that the government is there to take care of your interests as a crypto investor. However, stricter regulations around crypto isn’t confined to just Italy, as Portugal has been ahead in this queue.
Bigger Taxes on Crypto Profits
If you have invested in crypto through a cryptocurrency broker or other type of platform, you will have to brace yourself to pay bigger taxes on whatever profits you make on your investments.
If your gains on crypto investments cross the 2000 EUR mark, you will have to pay a tax of 26% on them. This is much larger than the previous levy, which was kept smaller by defining cryptocurrencies as foreign currencies.
Could it mean that golden days of crypto trading are gone for the people of Italy? That’s not clear at the moment but only time will tell where things go in the country because there have been some other progresses as well.
Disclose Your Assets to Lower Taxes
The government, as is clear from the steps it is taking, seems keen to know how many people have invested in cryptocurrencies. More importantly, it seems interested in knowing how much stake each person has in this market.
This is evident from the fact that if you are an Italian and you disclose your crypto or digital assets, the tax will be reduced by nearly half. What it means is that you will pay only 14% in taxes. It seems like a clear attempt to making tax filing clearer and more transparent in the country.
Italy Is Not the First
The one thing to note here is that Italy is not the first European country walking on this path. It is only following the lead of Portugal, which has been even stricter on its citizens by levying taxes as high as 28% on their crypto gains.