The Italian government has proposed a significant increase in the tax rate on capital gains from transactions in cryptocurrencies, in particular Bitcoin, as part of the budget law for 2025. The initiative has already received the support of the Council of Ministers and will now be discussed and approved by the Parliament.
The Deputy Minister of the Economy, Maurizio Leo, explained that digital assets involve a 'very high level of risk', which justifies the increase of the tax rate to 42%. The innovation is expected to bring in an additional annual revenue of between EUR 16.7 and 18 million.
Currently, revenues from the 26% tax rate amount to around EUR 27 million, so the higher tax burden would only generate a moderate increase.
Fiscal Debates: From Cryptocurrencies To New Financial Measures
The Ministry of Economy emphasises that cryptocurrencies are far from being core assets, and that investors need to be aware of the increased systemic risks. This position was expressed during a banking conference in Rome, where Economy Minister Giancarlo Giorgetti defended the proposal despite criticism from the right-wing conservative coalition itself.
Opponents include MP Giulio Centemero, who called the measure 'counterproductive' and warned of the risk of stimulating the 'underground economy'.
He and other members of the League have proposed an alternative: raising the tax rate to only 28%, instead of 42%.
Giorgetti, for his part, said he was open to considering 'different forms of taxation' for investors, thus paving the way for a possible compromise.
In addition to cryptocurrencies, other tax measures are also under discussion - in particular, the expansion of the scope of the digital tax, already set at 3% for transnational internet companies. The Budget Law 2025 proposes to lower the application thresholds to involve more operators.
The proposed increase in cryptocurrency taxation is part of a broader fiscal strategy: to close the budget deficit, declared at 7.4 per cent of GDP, and to deliver on the election promises of the Meloni government. However, the initiatives raise concerns: too sharp an increase could push companies and investors out of the official market.
What Happens Now?
Parliamentary hearings. The bill has been submitted to the Chamber of Deputies for consideration. An adjustment of the rate between the extreme options (26%, 28%, 42%) is likely. A compromise is expected. Previously, Italian lawmakers had already proposed a reduction of the rate to around 28%.
Impact on the market.The increase in the rate could cool interest in cryptocurrencies in Italy, but a similar effect has already occurred in India, where investors have migrated to offshore platforms.
The Italian government coalition is moving towards a tightening of taxation on cryptocurrencies, justifying the move as citizen protection and budget support. However, pressure from the business world and the majority members themselves are forcing a compromise. Italians and investors will have to closely monitor the parliamentary hearings until the end of 2024.
