Map of Italy with circuit board detail

Staying crypto-current

Maurizio Di Salvo TEP and Pier Giorgio Brugnara assess changes in tax treatment of crypto-assets in Italy

Cryptocurrency taxation can vary significantly by country but the following principles will often apply:

  • CGT: Many countries treat profits from the sale or exchange of cryptocurrency as capital gains. This means that when cryptocurrencies are sold for more than they were purchased, profits are subject to capital gains tax (CGT).
  • Income tax: In some cases, when cryptocurrency is received as payment for goods or services, it is treated as income and taxed accordingly.
  • Tax on mining: Individuals or entities that mine cryptocurrency may have to pay taxes on the value of the mined coins at the time they are received.
  • VAT/GST: There is variability in whether cryptocurrencies are subject to value added tax (VAT) or goods and services tax (GST). Some countries have decided that transactions involving cryptocurrency are exempt from these taxes.
  • Wealth tax: Some jurisdictions may include cryptocurrencies in wealth tax calculations, depending on the taxpayer's total holdings.
  • Tax reporting requirements: Taxpayers are generally required to report their cryptocurrency transactions and holdings, much like they would for any other asset.

Zeroing in on Italy, following a long break,[1] Budget Law of 2023) (the Law) introduced changes to the taxation rules for ‘crypto-assets’.[2] Before this major change, the Italian tax administration provided guidance on a case-by-case basis, in response to many taxpayer rulings, which were mainly concerned with the transfer of cryptocurrencies.


The new Italian tax pattern for crypto-assets

The Law introduced a specific tax discipline regarding crypto-assets in Italy.

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