Italy plans to raise its capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42% as part of its 2025 budget, aiming to generate additional resources for families, youth, and businesses.
The tax hike, approved by the Council of Ministers, targets crypto investment profits to support the economy.
While concerns have been raised about the impact on trading activity, with investors potentially shifting to offshore platforms, the cryptocurrency market has shown resilience, with Bitcoin surging 4% following the announcement.
Prime Minister Giorgia Meloni emphasized that the tax increase will not affect the general population, focusing specifically on the crypto sector. Italy’s move aligns with global trends as governments seek to regulate and profit from the booming digital asset market.
Since 2022, Italy has taxed crypto capital gains over €2,000 at 26%. Before this, cryptocurrency was classified as foreign currency, subject to much lower tax rates. The new plan significantly raises the tax to 42%, imposing a steeper burden on crypto investors.
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