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February 9, 2023

Italy approves Budget Law for 2023

On December 29, 2022, the Italian Government approved the Budget Law for 2023 that entered into force as of January 1, 2023. There has been an extension to the flat-tax rate scheme for individuals engaged in business, arts, or professions (so-called “Regime forfettario”). In this regard, the maximum amount of profits which are eligible for this scheme has been increased from €65,000 to €85,000. For the first time a comprehensive set of tax rules has been introduced for crypto assets. In particular, gains from the redemption, sale, exchange, or holding of crypto-assets – with a threshold of exemption equal to €2,000 will be subject to a 26% tax rate. The new law provides that capital gains realized by foreign investors from the disposal of shares in a non-resident company or entity whose total value comprises more than 50%, at any time during the 365 days before the transfer, from the direct or indirect investment in Italian real estate assets, are taxed at a rate of 26%.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.


Full text of Tax Alert