Italy Proposes 33% Exit Tax on Crypto Asset Holders Relocating Overseas; Unrealized Gains Also Taxable

According to TechFlow, on November 1, Italian crypto media outlet Criptovaluta.it reported that Italy is discussing including an Exit Tax in the new annual budget bill, imposing an unrealized capital gains tax of up to 33% on crypto asset holders relocating overseas; tax liabilities may arise even if the related Bitcoin or other crypto assets have not been sold.

Under the disclosed draft, the provision applies to individuals who have been Italian tax residents for at least 6 of the past 10 tax years and whose relevant assets have a total value of 800,000 euros. Taxable gains are calculated as the positive difference between the market value of the assets at the end of the tax year immediately preceding the effective termination of tax residency and their acquisition cost.

The exit tax is not limited to cryptocurrencies; it also covers other asset categories, and government bonds are proposed to be eligible for tax incentives. The relevant provisions are still in the draft discussion stage and have not yet been formally approved.

Source: TechFlow