Italy plans to raise capital gains tax on bitcoin from 26% to 42%: report

Quick Take

  • The Italian tax authority plans to raise capital gains tax on bitcoin to 42% as part of 2025 budget plans.
  • Crypto capital gains in Italy have been taxed above €2,000 at 26% from the 2023 tax year.

Italy plans to increase capital gains tax on bitcoin and other cryptocurrencies to 42%, Vice Economy Minister Maurizio Leo said during a press conference on the country’s budget for 2025, according to local newspaper Il Sole 24 Ore.

"We foresee an increase in the tax on bitcoin capital gains from 26% to 42%," Leo said, per a translation of the report, presenting measures approved by the Council of Ministers on Tuesday evening, aimed at generating resources to support families, youth and businesses.

Since the 2023 tax year, capital gains above €2,000 ($2,180) were taxed at 26% after several new rules for cryptocurrency taxation were introduced — a shift from the previous treatment of crypto as foreign currency, which had lower tax rates​.

However, that is now set to significantly increase, mirroring recent reports that UK Chancellor Rachel Reeves may be considering raising capital gains taxes, including those on cryptocurrencies, from 20% to 39%.

Leo also said that Italy was planning to crack down on cash usage to combat tax evasion, according to the report.

Earlier on Tuesday, Italy's Prime Minister, Giorgia Meloni, had said there would be no new taxes, seemingly referring to general or widespread new tax policies that would affect most citizens rather than a crypto-focused one.

“As we promised, there will be no new taxes for citizens. In addition, we will make the tax cut on workers structural, and 3.5 billion from banks and insurance companies will be allocated to healthcare and the most vulnerable,” Meloni posted on X.


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James Hunt is a reporter at The Block and writer of The Daily newsletter, keeping you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the latest market updates. You can get in touch with James on Telegram or 𝕏 via @humanjets or email him at [email protected].

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