Italy to raise tax on bitcoin profits to 42% 2

The Italian government plans to raise the capital gains tax on cryptocurrencies to 42%, according to the local news outlet Il Sole 24 Ore, citing Deputy Economy Minister Maurizio Leo.

This tax will apply to profits over €2000.

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

This tax hike is part of a set of measures approved by the Council of Ministers to raise funds for supporting households, young people, and businesses.

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

Among other decisions, Leo mentioned reviewing thresholds for online income and tightening measures against tax evasion. The government plans to focus on increasing the use of electronic payments and tracking them. In many cases, paper receipts for cash payments will no longer be enough to get a tax deduction, Leo explained.

Paolo Ardoino, CEO of Tether and a native of Italy, reacted to the sharp tax increase for bitcoin investors with a popular meme, hinting that crypto businesses might leave the country.

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

Italian Prime Minister Giorgia Meloni, while announcing the government’s budget, said there would be no new taxes. She also 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

Earlier this year, the law firm Manimama highlighted countries with the most crypto-friendly tax policies. Italy was not on that list.