Italy plans to increase the capital gains tax on cryptocurrencies such as Bitcoin from 26% to 42%, according to Vice Economy Minister Maurizio Leo.
This proposal, part of Italy’s 2025 budget, was announced during a press conference, with details published by Il Sole 24 Ore.
The tax hike is intended to generate additional resources for the country’s economic support programs, specifically targeting families, youth, and businesses.
Since 2023, crypto capital gains over €2,000 have been taxed at 26%, but this is now set to rise to 42%, significantly raising the burden on crypto investors. This shift follows Italy’s recent regulations which no longer treat cryptocurrencies as foreign currency, a classification that had allowed for lower tax rates. If approved, this measure would make Italy one of the strictest European countries in taxing digital assets, similar to proposals in the UK, where capital gains taxes on crypto could be raised to 39%.
In addition to the hike in crypto taxation, Leo announced a crackdown on cash usage to curb tax evasion. For example, new measures will require the use of digital payments for expenses like taxi services, and businesses will need to link their POS systems to cash registers to enhance transaction traceability. These steps are part of broader efforts to combat fraud and improve fiscal transparency in Italy.
Meanwhile, the government is also considering updates to its “web tax” policy, which applies to revenues generated in Italy by digital services. Leo revealed plans to remove the current €750,000 threshold and the €5 million cap for Italian-sourced income, allowing for more comprehensive taxation on large digital companies.
Despite these specific tax changes, Prime Minister Giorgia Meloni reiterated that there would be no new general taxes on citizens. She also confirmed the government’s commitment to reducing taxes on workers and allocating additional funds from banks and insurance companies to healthcare and support for vulnerable populations.