Italy to Raise Cryptocurrency Capital Gains Tax to 28%

The Italian government is set to increase the capital gains tax on cryptocurrencies to 28%, according to Bloomberg, citing an unnamed source.

Since 2023, Italian citizens have been required to pay 26% tax if their cryptocurrency profits exceed €2000 ($2145).

The proposal to raise the tax to 28% comes from the conservative Lega Nord party, a member of the coalition led by Italy’s current Prime Minister Giorgia Meloni. The proposal also includes the creation of dedicated working groups and consumer associations to educate investors on the intricacies of the cryptocurrency market.

In October, Deputy Minister of Economy Maurizio Leo announced plans to increase the tax to 42%. The statement provoked a strong reaction from the community, and the amendment was not included in the final budget version.

The tax increase could reduce Italy’s competitive advantage compared to other EU members, which offer more favorable tax regimes and incentives for crypto businesses.

According to Bloomberg, there is also an alternative proposal from the Forza Italia party to completely abolish the tax, but the government is leaning towards the compromise suggested by Lega Nord.

Earlier, Denmark announced plans to raise the tax on unrealized cryptocurrency gains to 42%.