Italy’s government has announced plans to raise the capital gains tax on cryptocurrencies, including Bitcoin, from 26% to 42%. The decision was made as part of the country’s 2025 budget strategy and was confirmed by Italy’s Deputy Finance Minister, Maurizio Leo, during a press conference on Wednesday.
Italy plans to raise capital gains tax on #Bitcoin from 26% to 42%. pic.twitter.com/Y6kPYOYtF2
— TFTC (@TFTC21) October 16, 2024
Leo explained that the decision to increase the tax rate was driven by the growing popularity of Bitcoin and other digital assets, which the Italian government considers a significant financial phenomenon. “The phenomenon is spreading,” Leo said during a conference call, highlighting the need for the government to adjust its taxation policies to keep up with the expanding market.
Currently, capital gains from cryptocurrency investments in Italy are taxed at a rate of 26% for gains exceeding €2,000 (approximately $2,180). The new tax rate of 42% represents a substantial increase and will bring Italy’s crypto tax policy closer in line with other countries, such as the UK, which is also considering raising capital gains tax on cryptocurrencies.
Despite the announcement of the tax increase, the price of Bitcoin remained unaffected, continuing its upward momentum. Bitcoin has seen a 12% rise over the past week, and the price rose above $68,000 for the first time since late July.
The full implications of the new tax rate on the broader market and investor behavior remain to be seen. Italy’s government has yet to clarify when the tax increase will take effect and whether any further changes to cryptocurrency regulation will follow.
