Italy to raise tax on bitcoin profits to 42%

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 will apply to profits exceeding €2000.

“We are forecasting an increase in the capital gains tax on bitcoin from 26% to 42%,” said the official during a press conference on the 2025 budget.

The tax hike is part of measures approved by the Council of Ministers aimed at raising funds to support households, youth, and businesses.

The government first introduced a tax on cryptocurrency profits in the 2023 budget.

Among other government decisions, Leo mentioned revising threshold values for online income and tightening efforts against tax evasion. The government aims to emphasize the expansion and monitoring of electronic payments. In many cases, a paper receipt for cash payments will no longer be sufficient to receive a deduction, the official noted.

CEO of Tether, Paolo Ardoino, an Italian native, commented on the sharp increase in the rate for bitcoin investors with a well-known internet meme, hinting at a potential exodus of crypto businesses from the country.

His fellow countryman, COO of Ava Labs (Avalanche) Luigi D’Onorio DeMeo, posted just one word: “Brutal.”

Italian Prime Minister Giorgia Meloni, while announcing the government’s budget approval, stated that there will be no new taxes. Moreover, she promised to “structurally” reduce the tax 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

As a reminder, in February, the legal firm Manimama highlighted jurisdictions with the most favorable tax regimes for cryptocurrency holders. Italy was not among them.