Higher Tax Rates for Bitcoin Capital Gains
Italy is preparing to raise its capital gains tax on bitcoin and other cryptocurrencies from 26% to 42% in 2025, according to Vice Economy Minister Maurizio Leo. This change, confirmed during a recent budget press conference, will apply to capital gains exceeding €2,000 ($2,180). Since 2023, gains above this threshold have been taxed at 26%, but the proposed increase is aimed at generating additional revenue to support social programs, including assistance for families, youth, and businesses.
Addressing Fiscal Gaps and Tax Evasion
The Italian government sees this tax increase as part of a broader fiscal strategy, including stricter measures against cash transactions to combat tax evasion. The proposed tax rate places Italy among the most stringent crypto tax regimes globally, aligning with similar moves from the UK, where officials are considering raising crypto capital gains taxes to as high as 39%.
Implications for Crypto Investors
Prime Minister Giorgia Meloni stated that this new measure doesn’t contradict her earlier announcement that there would be no general tax increases. Her statement appears to focus on widespread tax changes that affect the majority, not crypto-focused adjustments. Should this plan move forward, Italy’s crypto investors may need to reassess their strategies as they face a significantly higher tax burden on profits from digital assets.
Source:
The Block
