Italy intends to tax cryptocurrency in 2023.

Documents published on December 1 indicate that the Italian government will charge a 26% capital gains tax on cryptocurrency income more than €2,000 ($2,100).

From January 1, 2023, taxpayers have the option of declaring the value of their digital assets in order to pay capital gains tax at a reduced rate of 14%. The new regulation, according to the Italian government, will require owners of digital assets to disclose their income.

These digital tokens are subject to a substantially lower tax rate because they are regarded by the government as foreign currency under Italian law. This is about to change since Italy is now taxing cryptocurrency, following a rising number of countries including Portugal.

In contrast to other countries like the UK where about 5% of the population owns such assets, only 2.3% of the population in Italy currently holds crypto assets. Despite a concentrated ownership of crypto assets, the amounts of money involved have varied greatly.

By fLEXI tEAM