Italy to raise tax on bitcoin profits to 42% claude

The Italian government plans to raise the tax on cryptocurrency capital gains to 42%. This news comes from the local publication Il Sole 24 Ore, quoting Deputy Minister of Economy Maurizio Leo.

This tax applies to profits over €2000.

«We plan to increase the tax on Bitcoin capital gains from 26% to 42%,» said the official at a press conference about the 2025 budget.

This tax increase is part of measures approved by the council of ministers to raise money for supporting households, young people, and businesses.

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

Leo also mentioned other government decisions, including reviewing thresholds for web income and stricter measures against tax evasion. The government wants to encourage more use of electronic payments and track them better. In many cases, paper receipts for cash payments will no longer be enough for tax deductions, the official explained.

Paolo Ardoino, CEO of Tether and an Italian native, commented on the sharp tax increase for Bitcoin investors with a popular internet meme, hinting at the possible exit of crypto businesses from the country.

His fellow Italian, Luigi D’Onorio DeMeo, COO of Ava Labs (Avalanche), wrote one word: «Brutal».

Italy’s Prime Minister Giorgia Meloni, announcing the government’s budget approval, said there would be no new taxes. In fact, 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

Remember, in February, the law firm Manimama listed jurisdictions with the most favorable tax regimes for cryptocurrency holders. Italy was not included in this list.