Italy's forward-looking move on cryptocurrencies

Digital assets from 1 January 2023 will be taxed when cash out in fiat and transferred to third parties, such as for the purchase of goods or services.

The legislation stipulates that crypto conversions do not generate taxable income, and stipulates that capital gains should be counted as Miscellaneous Income, therefore taxed at 26%, but with no taxation up to EUR 2,000 of capital gain per year.

The Fiscal Budget Law also sets out some guidelines for the regularisation of crypto assets that took place before its entry into force and in particular with regard to those who did not indicate those held on 31 December 2021 in their tax returns, who will then be able to regularise their position.

How to make the most of the opportunities

To do so, it is necessary to plan for any future cash out for one's own needs, such as, for example, private purchases; conversion into fiat currency for holding in one's current account; capitalisation of one's own business in the case of entrepreneurs; repayment of personal debts or bank loans and the like.

Once needs and objectives have been defined, one must proceed with a "appraised revision" of one's crypto position and pay the 4.67% substitute tax per year for 3 years, remembering to draw up a memorandum describing the revaluation operation with a date certain to be kept in case of controls.