Italy is set to boost its capital gains tax on Bitcoin from 26% to 42%, placing it among the top countries in terms of cryptocurrency taxation globally. In contrast, the UAE has decided to exempt digital asset transactions from its 5% value-added tax (VAT) in an effort to position itself as a crypto-friendly jurisdiction. The announcement has received criticism and ridicule from investors and industry advocates who argue that it is short-sighted and could push investors away, stifling innovation and investment within Italy.
The Italian government had previously introduced a 26% tax rate on profits from crypto trading in December 2022. This change is set to take effect on November 15, 2024, and will be applied retroactively to transactions dating back to January 1, 2018.
