Italy’s parliament has approved a proposal for a 26% tax on crypto gains above 2,000 euros ($2,110).

In addition to bringing a hefty tax on crypto gains, the new law also introduces incentives for taxpayers to report their crypto. Under the law, crypto owners are entitled to an amnesty for unreported gains achieved in previous years by paying a “substitute tax” of 3.5%, plus a 0.5% fine for each additional year.

The law was passed by the Italian parliament on December 29 as part of the budget for 2023, local news outlet Rai News reported.

As was expected, the law also allows taxpayers to deduct their crypto losses over 2,000 euros.

(by Fredrik Vold)