Italy to raise Bitcoin capital gains tax from 26% to 42%

The Italian government has announced plans to increase the capital gains tax on Bitcoin (CRYPTO:BTC) and other cryptocurrencies from 26% to 42%. 

This significant hike, representing a nearly 62% rise, was disclosed by Deputy Minister of Economy Maurizio Leo during a recent press conference discussing the 2025 budget. 

According to local financial news outlet Il Sole 24 Ore, the move is part of broader efforts to boost revenue for supporting families, businesses, and young people in Italy.

Currently, Italian taxpayers must report their cryptocurrency holdings and gains on the "Redditi Persone Fisiche" form. 

Additionally, they are required to disclose their crypto assets under foreign financial activities on the 730 form. 

The proposed tax changes would further impact how local traders and investors manage their cryptocurrency portfolios, as any gains from Bitcoin and other digital assets will face a higher tax rate starting next year.

Since the 2023 tax year, Italy has applied a 26% tax on all cryptocurrency capital gains exceeding €2,000 (approximately $2,175). 

This was initially included in the 2024 tax filings. 

The planned increase to 42% signals a substantial shift in Italy's approach to cryptocurrency regulation, likely affecting traders who have been accustomed to the lower tax rate.

In addition to these cryptocurrency tax changes, Italy plans to modify its web tax regulations. 

Deputy Minister Leo confirmed that the government intends to remove existing thresholds, such as the €750,000 cap and the €5 million revenue limit, simplifying the collection of taxes from digital services operating in the country. 

At the time of writing, the Bitcoin (BTC) price was $67,719.97.