On December 29, 2022, days before the end of the year, the Italian Senate approved its 2023 budget, which included increasing taxation for crypto investors – a 26% tax on capital gains from trading crypto assets over €2,000 (approx. 13 at the time of publication).
The approved legislation defines crypto assets as “a digital representation of value or rights that can be transferred and electronically stored using distributed ledger technology or similar technology.” Previously, crypto assets were treated as foreign currencies with lower taxes in the country.
As Cointelegraph reports, the bill also provides that taxpayers will be able to declare the value of their holdings of digital assets starting Jan. 1 and pay a 14% tax, incentives designed to encourage Italians to invest their digital assets specify assets.
Other changes introduced by the Budget Law include tax amnesties to reduce penalties for non-payment of taxes, tax incentives to create jobs and a lowering of the retirement age. It also includes 21 billion euros ($22.4 billion) in tax breaks for businesses and households coping with the energy crisis.
Related: MiCA bill comes with a clear warning for crypto influencers
Giorgia Meloni, Italy’s first female prime minister, received broad support from the legislature for her bill, despite promising dramatic tax cuts when elected in September.
According to local media reports, measures by the Italian government to reduce gas consumption have been implemented across the country, including over 15 days without central heating for buildings, with the population being asked to turn down their heating by one degree and turn it off for an extra hour during the winter.
Italy’s legislation follows the passage of the Cryptocurrency Markets Bill (MiCA) on October 10, creating a unified regulatory framework for cryptocurrencies across the 27 member countries of the European Union. MiCA is expected to come into effect in 2024.