The Italian government has approved a 26% capital gains tax on cryptocurrency, with plans to potentially raise it to 42% in the future. This aligns the treatment of cryptocurrencies with traditional investments and places them within the same regulatory and tax framework. France has also proposed taxing "unproductive capital gains" from crypto holdings. These measures are aimed at capturing revenue from the growing wealth generated by the crypto market, as ownership is highly concentrated among high-net-worth individuals. In response, wealthy individuals are considering favorable tax regimes in countries like Luxembourg, Switzerland, and Portugal. Portugal offers significant tax advantages, including no wealth tax on digital assets and tax-free capital gains on crypto held for over a year. Switzerland exempts the sale of cryptocurrencies from taxation for private investors. Luxembourg generally exempts gains from crypto held for over six months from tax. The differing tax rules in different countries have led to an increase in inquiries into alternative wealth management approaches. Some investors are leveraging assets rather than selling them to avoid taxable events, while others are exploring income-generating solutions and diversification tools. These strategies help investors adapt to evolving tax regulations while preserving and building wealth. Approaches such as using crypto as loan collateral, yield farming and staking, and establishing crypto trusts can help reduce or defer taxes. Compliance with European regulations is essential to avoid fines, audits, and asset seizures. Investors are advised to consult with trusted financial advisors and explore innovative tools and strategies for adapting to evolving tax frameworks.



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