The Italian government has announced plans to significantly increase its capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%. This move, part of the country’s 2025 budget plan, aims to generate additional revenue to fund public services and address fiscal shortfalls.

Deputy Economy Minister Maurizio Leo confirmed the proposed hike during a press conference at Palazzo Chigi on October 16, 2024​.

The 42% tax will apply to capital gains exceeding €2,000 ($2,175), a threshold that has been in place since 2023. The measure marks one of the highest tax rates on digital assets in Europe, positioning Italy as a more aggressive regulator within the global crypto landscape.

Government officials, including Prime Minister Giorgia Meloni, have assured the public that no new general taxes will be imposed on citizens outside the cryptocurrency sector​.

The decision has sparked concern among investors, with many fearing it could stifle crypto trading activity in the region. Some traders may seek offshore platforms to avoid the increased tax burden, a trend previously seen in other countries with similar policies.

However, Italy’s government insists that the revenue generated from the tax hike will support families, youth, and businesses in need​

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