Beginning in 2023, Italy will apply a 26% capital gains tax on cryptocurrency profits. Holders of cryptocurrencies will now be required to pay 14% interest on their holdings and disclose their positions. The tax will only be charged on profits over EUR 2,000. While it’s not excately clear how the regulation is structured, Blockpit will cover it to be your number one tax software for cryptocurrencies to go.
Until now, cryptocurrencies have been subject to foreign currency tax laws that are much lower. The tax increase will undoubtedly displease investors in the country, as their capital gains will be reduced. The change in the tax regulation will affect 2,3% of the Italian population, or about 1,3 million people, who are cryptocurrency owners.
Under present tax rules, digital assets and tokens are classified as foreign currency in Italy, which is taxed at a reduced rate. The draft law also adds transparency requirements to cryptocurrencies. Which is a good step toward a regulated future.
➡️ So, all Italian citizens who own cryptocurrencies will have to submit a tax report to the Agenzia delle Entrate (italian tax authority) in the future. They must keep a record of all their crypto transactions in order to have the information available in case of later inquiries. To prevent Italians from needing to write long Excel lists, they can also use Blockpit.
If you use our crypto tax software Blockpit, you will receive a country-specific report for the Italian law, with which you can go directly to the Agenzia delle Entrate. By the way: Blockpit is also available in a free version! Blockpit’s crypto tax software imports the data from all your exchanges and wallets fully automated via API interface. And yes, CSV works as well, of course. Till the Italian tax return needs to be handed in, Blockpit will then have generated a country-specific tax report for all Italian users. So register now, connect your wallets and exchanges, download your tax report and be on the save side!
