On December 29, 2022, Italy’s Senate passed a budget for 2023 that included a 26% tax on capital gains from cryptocurrency trading over 2000 euros ($2,13).
This was an increase in taxation since cryptocurrencies were previously treated as foreign currencies and were taxed at a lower rate.
The budget also allowed citizens to declare the value of their digital assets on January 1, 2022 and pay a 14% tax, in an effort to promote declarations of digital assets.
Additionally, the budget proposed tax amnesties, incentives for job creation, a reduction in the retirement age, and $22.4 billion in tax breaks for companies and households struggling with the energy crisis.
This was following the approval of the Markets in Crypto Assets (MiCA) bill on October 10, which created a consistent regulatory framework for cryptocurrency in the European Union. This legislation is expected to come into effect in 2024.
