Italy: Flat tax for crypto investors - KPMG International

[CyberZero]

Anybody got any experience with this?
I see that some members used this but it seems like they had a more complicated case.

100k a year, when you would do a million a year it comes down to a tax of 10%, higher profit numbers would amount to less tax % because of the fixed tax number of 100k.

Reference from KPMG in pdf document

 

[TheCryptoAnt]

I believe @JohnnyDoe has experience with this

 

[JohnnyDoe]

It was already discussed somewhere here. The tax regime is straightforward, just one page to file, nothing to declare, works well for me.

 

[JustAnotherNomad]

Is the "new resident" rule only about tax residency or also regular residency? Are you ineligible for the scheme if you have had a holiday home in Italy for some time, so you're a resident, but you were never tax resident before since you were living 183+ days in your home country?

 

[JohnnyDoe]

Is the "new resident" rule only about tax residency or also regular residency? Are you ineligible for the scheme if you have had a holiday home in Italy for some time, so you're a resident, but you were never tax resident before since you were living 183+ days in your home country?

If you are an Italian resident you are also subject to Italian taxation. Just owning a holiday home in Italy doesn’t make you resident.

 

[JustAnotherNomad]

Apparently there's something called "residente" in Italy, I think it comes with some document/identity card? I think you may need it to open a local bank account? Don't think the friend I'm thinking of pays taxes in Italy as he doesn't work there, it's a pure holiday home.

 

[JohnnyDoe]

Apparently there's something called "residente" in Italy, I think it comes with some document/identity card? I think you may need it to open a local bank account? Don't think the friend I'm thinking of pays taxes in Italy as he doesn't work there, it's a pure holiday home.

To become a resident you need to register as such with the local municipality (registro della popolazione residente), they will issue a residence certificate (a paper with a stamp on it). The ID card is a separate document. You don’t need to open a bank account or else, only to reside, which doesn’t mean going there on holiday. But you can also be a resident without working or spending any time at all there, as long as you pay your taxes everyone will be happy.

 

[JustAnotherNomad]

They are definitely residents then. Does that mean you can't use that scheme? Even if you never paid any taxes in Italy (probably because you were protected by a tax treaty)?

 

[JohnnyDoe]

They are definitely residents then. Does that mean you can't use that scheme? Even if you never paid any taxes in Italy (probably because you were protected by a tax treaty)?

Why should your friend have registered as a resident if he only goes to Italy for holidays?
Anyway, if he is resident he must pay taxes in Italy. And no, only those who have not been resident in the past 9 years can apply for this special regime.

 

[manukahoney]

I've done some research about this regime, it does work as described.
If you have a EU passport or other means to legally reside in Italy - it's worth exploring. There is some development in the immigration law in Italy, but so far it's mostly about simplifying the rules and greenlighting the investors (just google dolce visa).

However for me where was a single, but massive caveat - if you own a company or at least 25%+ in one and decide to sell, there will be tax on proceeds. I'm not sure how it works for crypto assets, but make sure you have everything double checked.

 

[JustAnotherNomad]

Why should your friend have registered as a resident if he only goes to Italy for holidays?

It's a touristic place and residents have some benefits (discounts, maybe free parking, stuff like that). He definitely doesn't have to pay taxes, there's a tax treaty with his high-tax home country.

 

[JohnnyDoe]

It's a touristic place and residents have some benefits (discounts, maybe free parking, stuff like that). He definitely doesn't have to pay taxes, there's a tax treaty with his high-tax home country.

So your friend filed a false declaration to save pennies on parking and utilities. Not a smart move. Expect Agenzia delle Entrate and GdF to investigate him sooner or later. Best case scenario will be a (minor) criminal conviction for the false declaration.

 

[JustAnotherNomad]

I don't know what exactly he has done. But I'm 100% sure he doesn't owe any taxes in Italy (he has a company in his home country where he pays 50%+ in taxes), he doesn't work in Italy.
Worst thing I could imagine would be that they say he should have submitted tax returns or something - but the tax treaty should make it clear no taxes are owed in Italy.

 

[JohnnyDoe]

I don't know what exactly he has done. But I'm 100% sure he doesn't owe any taxes in Italy (he has a company in his home country where he pays 50%+ in taxes), he doesn't work in Italy.
Worst thing I could imagine would be that they say he should have submitted tax returns or something - but the tax treaty should make it clear no taxes are owed in Italy.

I smile at your naivety