Italy Reveals 62% Increase in Bitcoin Capital Gains Tax

The Italian government has announced plans to raise the tax rate on capital gains from Bitcoin and other cryptocurrencies from 26% to 42%. That’s a nearly 62% increase from the current rate.

Local financial news outlet Il Sole 24 Ore reported that Deputy Minister of Economy Maurizio Leo disclosed the move during a press conference on the 2025 budget. The measure is part of a broader effort to generate additional revenue to support families, young people, and businesses.

Italian taxpayers are expected to include their crypto holdings in the “Redditi Persone Fisiche” form and clearly state the capital gains made through their sales or other gains—presumably staking rewards. Italian citizens are also expected to list their crypto holdings in the 730 form, in the section dedicated to foreign financial activities.

The latest development in Italy’s approach to cryptocurrency follows a consortium of companies receiving support in 2023 from a research hub backed by Italy’s central bank to develop a system based on Ethereum scaling network Polygon. That initiative was focused on developing the "Institutional DeFi for Security Token" ecosystem.

Since the 2023 tax year, Italy has taxed all cryptocurrency capital gains exceeding €2,000 (about $2,175) at a rate of 26%. This policy was introduced with the 2024 tax filings. The proposed increase to 42% represents a significant shift in the country's approach to cryptocurrency taxation, affecting local cryptocurrency traders and investors.

In addition to changes in cryptocurrency taxation, the government is planning adjustments to the web tax. Deputy Minister Leo announced the elimination of existing thresholds, including the €750,000 ($815,000) cap and the €5 million ($5.43 million) limit on revenue generated in Italy. Removing these thresholds aims to streamline tax collection from digital services operating within the country.

The news follows the United Kingdom's introduction of new rules for cryptocurrency taxation last year. The treasury announced at the time that it was making changes to the rules surrounding crypto assets on the self-assessment (SA) system, now requiring any amounts related to crypto to be identified separately.

Edited by Andrew Hayward