- Italy plans to raise the capital gains tax on cryptocurrencies from 26% to 42%.
- This new policy reflects a broader European trend toward stricter regulation of digital assets.
- Prime Minister Giorgia Meloni has assured citizens that the measure will not create new taxes directly targeted at the general public.
According to Italy’s Deputy Minister of Economy Maurizio Leo, the country intends to increase the capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%.
The announcement was made during a press briefing outlining details of the 2025 budget. Deputy Minister Leo highlighted that the measures approved by the Council of Ministers are intended to generate additional revenue to support families, young people, and businesses.
Italy’s new tax regime reclassifies cryptocurrency taxation
The proposed policy marks a significant shift from the framework introduced for the 2023 tax year. It is part of a broader reform that reclassifies how cryptocurrencies are taxed, ending the practice of treating certain digital currencies as foreign currency and thereby subjecting them to comparatively lower rates.
Under the previous system, capital gains above €2,000 (roughly $2,180) were taxed at 26%.
European countries tighten tax rules for digital assets
The planned hike in capital gains taxation for cryptocurrencies mirrors a wider European trend toward tougher tax and regulatory measures for digital assets. Similar debates have been reported in the United Kingdom, where Treasury discussions have considered raising the capital gains tax—including for crypto—potentially from 20% to 39%.
Deputy Minister Leo said that, alongside raising the capital gains rate, Italy plans to strengthen anti-evasion measures, with an emphasis on tighter controls over cash transactions.
These efforts aim to create a more transparent financial environment and increase government revenues. Despite the proposed tax increases, Prime Minister Giorgia Meloni sought to reassure the public that no new taxes directly affecting ordinary citizens will be imposed.
She noted that the government remains committed to structural tax relief for workers and plans to allocate €3.5 billion from banks and insurance companies to support healthcare and the most vulnerable segments of society.
As Italy moves to implement these tax changes, the ultimate impact on cryptocurrency investors and the broader digital-asset market remains uncertain, particularly in light of heightened regulatory scrutiny across Europe.