The Italian Parliament has approved amendments to the 2023 budget, which include the introduction of a 26% tax on capital gains resulting from the trading of digital assets.
Digital coins and tokens have until now been treated by Italian tax authorities as foreign currency, which meant lower taxation.
The law, put forward by Prime Minister Georgia Maloney’s government and passed by Parliament, also gives taxpayers the option to declare the value of assets as of January 1, 2023, paying a tax of 14%. The aim is to encourage Italians to declare their digital assets in their tax returns.
Italy’s tougher stance comes after Portugal, one of Europe’s most cryptocurrency-friendly countries, unveiled its plan to tax short-term gains from digital assets at 28% in October.