The Italian government plans to increase the capital gains tax on cryptocurrencies to 42%. This was reported by the local publication Il Sole 24 Ore, citing Deputy Minister of Economy Maurizio Leo.
The tax applies to profits exceeding €2000.
“We anticipate raising the capital gains tax on bitcoins from 26% to 42%,” the official stated at a press conference on the 2025 budget.
The rate increase is part of measures approved by the Council of Ministers to raise funds to support households, youth, and businesses.
The government first introduced the cryptocurrency profit tax in the 2023 budget.
Among other government decisions, Leo mentioned revising threshold values for web income and tightening the fight against tax evasion. The government intends to focus on expanding the use of electronic payments and their tracking. In many cases, paper receipts for cash payments will no longer suffice for deductions, the official exemplified.
Tether CEO Paolo Ardoino, an Italian native, commented on the sharp rate increase for bitcoin investors with a well-known internet meme, hinting at a potential exodus of crypto businesses from the country.
His compatriot, Ava Labs (Avalanche) COO Luigi D’Onorio DeMeo, wrote a single word: “Brutal.”
Italian Prime Minister Giorgia Meloni, announcing the government’s budget adoption, stated that there will be no new taxes. Moreover, she promised to “structurally” reduce the fiscal burden on employees.
Oggi, in Consiglio dei Ministri, abbiamo varato la legge di bilancio, un intervento che mette al centro i cittadini, le famiglie e il rilancio della nostra Nazione.
Come avevamo promesso, non ci saranno nuove tasse per i cittadini. Inoltre, rendiamo strutturale il taglio delle… pic.twitter.com/scgmgnzBw9
— Giorgia Meloni (@GiorgiaMeloni) October 15, 2024
In February, the legal firm Manimama highlighted jurisdictions with the most favorable tax regimes for cryptocurrency holders. Italy was not among them.