- Italy plans to raise the capital gains tax on cryptocurrencies from 26% to 42%.
- The new policy reflects a broader European trend toward tighter regulation and higher taxation of digital assets.
- Prime Minister Giorgia Meloni has insisted there will be no new taxes imposed directly on citizens despite the proposed increases.
Italy intends to increase the capital gains tax applied to Bitcoin and other cryptocurrencies from the current 26% to a substantial 42%, according to Deputy Minister of Economy Maurizio Leo.
The announcement came during a press conference presenting the country’s 2025 budget. Leo outlined measures approved by the Council of Ministers designed to generate additional revenue to support families, young people and businesses.
Italy’s fiscal shift reclassifies how cryptocurrencies are taxed
The proposed policy marks a notable shift from the framework that has applied since the 2023 fiscal year. Part of a broader reform, the change reclassifies the tax treatment of cryptocurrencies and moves away from treating them as foreign currency — a classification that previously benefited from lower tax rates.
Under the previous regime, capital gains exceeding €2,000 (roughly $2,180) were taxed at 26%.
European countries tighten rules on digital-asset taxation
The proposed increase in Italy reflects a wider trend across Europe of tightening fiscal rules and increasing taxes on digital assets. Governments are reassessing how cryptocurrencies fit into existing tax frameworks and seeking more revenue from the sector as digital-asset markets grow.
Similar movements have been reported elsewhere, including the United Kingdom, where Chancellor Rachel Reeves is reportedly considering raising capital gains tax rates — which would also affect cryptocurrency gains — from 20% to as much as 39%.
Beyond increasing capital gains rates, Leo also indicated Italy will step up enforcement efforts to combat tax evasion, including tougher regulations governing cash transactions. These measures aim to foster greater financial transparency and strengthen public revenues.
Despite the proposed tax increases, Prime Minister Giorgia Meloni reassured citizens that the government does not intend to introduce new taxes that would weigh directly on the general population. She emphasized the administration’s commitment to structural tax cuts for workers and announced plans to allocate €3.5 billion from banks and insurance companies to healthcare and support for the most vulnerable segments of society.
As Italy prepares to implement these fiscal changes, the consequences for cryptocurrency investors and the broader digital-asset market remain uncertain. The evolving regulatory environment across Europe means market participants will likely face increased scrutiny, more rigorous reporting requirements and higher effective tax rates on crypto-related gains.
The proposed measures aim to balance revenue needs and social spending priorities while bringing cryptocurrency taxation more in line with other asset classes. Observers will be watching how the Italian government finalizes these rules, how enforcement will be carried out in practice, and how the market responds to a higher tax burden and tighter oversight.