- Italy plans to increase capital gains tax on cryptocurrencies from 26% to 42%.
- The new policy reflects the trend of European countries tightening cryptocurrency regulation.
- Prime Minister Giorgia Meloni has promised no new taxes on citizens despite the hike.
Italy plans to increase capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%, Deputy Economy Minister Maurizio Leo said.
The announcement was made at a press conference detailing the 2025 national budget, where Leo highlighted measures approved by the Council of Ministers aimed at creating additional resources to support families, youth and businesses.
Italy’s New Tax Policy Reclassifies Cryptocurrency Taxation
The new tax policy represents a significant change from the current system, which comes into effect from tax year 2023.
The change follows broader reforms to reclassify cryptocurrency taxation away from treating cryptocurrencies as foreign currencies, which previously enjoyed lower tax rates.
Under the previous system, capital gains exceeding 2,000 euros (about $2,180) were taxed at 26%.
European countries tightening tax regulations on digital assets
The increase in capital gains tax on cryptocurrencies reflects a growing trend in European countries to tighten tax regulations on digital assets.
A similar move has been reported in the UK, where Prime Minister Rachel Reeves is considering increasing capital gains tax, including on cryptocurrencies, from 20% to 39%.
In addition to raising capital gains taxes, Leo noted that Italy plans to step up efforts to combat tax evasion, particularly through tighter regulations on cash transactions. The goal of the plan is to create a more transparent financial environment and strengthen government revenues.
Despite the proposed tax hikes, Italian Prime Minister Giorgia Meloni has reassured citizens that there will be no new taxes affecting the general public. She said the government remained committed to structural tax cuts for workers and planned to allocate 3.5 billion euros from banks and insurance companies to healthcare and support for the most vulnerable sectors of society.
As Italy prepares to implement these tax changes, the impact on cryptocurrency investors and the broader digital asset market remains to be seen, especially in an environment of increasing regulatory scrutiny across Europe.