David Edwards
Italy is set to significantly increase the capital gains tax on Bitcoin and other cryptocurrencies, raising it from 26% to 42%, according to Vice Economy Minister Maurizio Leo. The announcement was made during a press conference discussing the country’s 2025 budget, reported by Il Sole 24 Ore. The measure, approved by the Council of Ministers, aims to generate additional resources to support families, youth, and businesses.
This shift marks a sharp increase from the current tax structure implemented in 2023, which imposed a 26% tax on cryptocurrency capital gains exceeding €2,000 ($2,180). Previously, cryptocurrencies were treated as foreign currency, subject to lower tax rates. The new tax rate aligns with recent discussions in the UK, where capital gains tax on digital assets could potentially rise from 20% to 39%.
In addition to the tax hike, Italy plans to intensify efforts to curb tax evasion by limiting cash usage. Meanwhile, Prime Minister Giorgia Meloni reassured citizens that there would be no widespread new taxes, with additional funds from banks and insurance companies set to bolster healthcare and aid for vulnerable populations.
