Italy Plans to Increase Capital Gains Tax on Cryptocurrencies

Italy is set to increase the capital gains tax on Bitcoin and other cryptocurrencies to 42%, as announced by Vice Economy Minister Maurizio Leo during a press conference regarding the country’s 2025 budget. According to reports from local newspaper Il Sole 24 Ore, Leo stated, "We foresee an increase in the tax on bitcoin capital gains from 26% to 42%." This change comes as part of measures approved by the Council of Ministers to generate resources supporting families, youth, and businesses.

Since the 2023 tax year, capital gains exceeding €2,000 ($2,180) were taxed at 26% following new cryptocurrency taxation rules, replacing the previous treatment of crypto as foreign currency, which had lower tax rates.

This significant tax hike aligns with recent suggestions from UK Chancellor Rachel Reeves to potentially raise capital gains taxes on cryptocurrencies from 20% to 39%.

Additionally, Leo mentioned plans to combat tax evasion by cracking down on cash usage in Italy.

On the same day, Italy’s Prime Minister Giorgia Meloni emphasized that there would be "no new taxes for citizens" regarding general tax policies, though the focus on cryptocurrencies introduces specific tax changes. She also highlighted a structural tax cut for workers and the allocation of 3.5 billion from banks and insurance companies towards healthcare and support for the vulnerable, as she posted on X.