Italy, Bitcoin Capital Gains Tax Rate at 42% From 2025
As of 2025, the tax rate on capital gains from Bitcoin in Italy will rise from 26% to 42%. This decision was announced by the Deputy Minister of the Economy, Maurizio Leo.
The cryptocurrency taxation landscape in Italy is becoming increasingly complex and burdensome for investors. According to the latest statements by the Deputy Minister of the Economy, Maurizio Leo, the tax rate on capital gains from Bitcoin and other cryptocurrencies will be drastically increased from the current 26% to 42% from 2025. This significant change was announced as part of the press conference on the financial manoeuvre for next year.
How does the taxation of cryptocurrencies in Italy work today?
Currently, cryptocurrencies are subject to a 26% tax rate on capital gains above €2,000, in line with other types of financial investments such as stocks and bonds. Investors have to declare their profits via the Income Form and fill out the RT and RW forms to regularise their tax position. Taxation is only applied if the total capital gains exceed the EUR 2,000 threshold per year.
However, with the entry into force of the new 42% tax rate, Italy will rank among the countries with the highest taxes on cryptocurrencies, making the situation much more burdensome for investors in this sector.
What are the consequences of an increase to 42%?
The impact of this decision could be devastating for the cryptocurrency sector in Italy. Federico Ametrano, CEO and co-founder of CheckSig, described this tax increase as 'unfair and probably unconstitutional', suggesting that such a high rate could lead to capital flight from the country. Investors could seek to realise capital gains by the end of 2024, before the increase comes into effect, generating a distorting effect on the market.
In addition, this move could create a gap with other cryptocurrency-related financial instruments, such as ETPs or ETFs, which would remain subject to a 26% tax rate, further putting cryptocurrency direct holders in a difficult position.
What to expect in the future?
The increase to 42% is not yet final, as it will have to be confirmed with the final approval of the budget law. However, predictions suggest that if the manoeuvre were to pass, Italy would face a new wave of controversy from crypto investors and practitioners, and could see the attractiveness of this market greatly reduced.
In conclusion, the tax increase on cryptocurrencies in Italy marks a significant change in the way the government intends to deal with this emerging sector, and the implications could be profound for the country's digital economy
The cryptocurrency taxation landscape in Italy is becoming increasingly complex and burdensome for investors. According to the latest statements by the Deputy Minister of the Economy, Maurizio Leo, the tax rate on capital gains from Bitcoin and other cryptocurrencies will be drastically increased from the current 26% to 42% from 2025. This significant change was announced as part of the press conference on the financial manoeuvre for next year.
How does the taxation of cryptocurrencies in Italy work today?
Currently, cryptocurrencies are subject to a 26% tax rate on capital gains above €2,000, in line with other types of financial investments such as stocks and bonds. Investors have to declare their profits via the Income Form and fill out the RT and RW forms to regularise their tax position. Taxation is only applied if the total capital gains exceed the EUR 2,000 threshold per year.
However, with the entry into force of the new 42% tax rate, Italy will rank among the countries with the highest taxes on cryptocurrencies, making the situation much more burdensome for investors in this sector.
What are the consequences of an increase to 42%?
The impact of this decision could be devastating for the cryptocurrency sector in Italy. Federico Ametrano, CEO and co-founder of CheckSig, described this tax increase as 'unfair and probably unconstitutional', suggesting that such a high rate could lead to capital flight from the country. Investors could seek to realise capital gains by the end of 2024, before the increase comes into effect, generating a distorting effect on the market.
In addition, this move could create a gap with other cryptocurrency-related financial instruments, such as ETPs or ETFs, which would remain subject to a 26% tax rate, further putting cryptocurrency direct holders in a difficult position.
What to expect in the future?
The increase to 42% is not yet final, as it will have to be confirmed with the final approval of the budget law. However, predictions suggest that if the manoeuvre were to pass, Italy would face a new wave of controversy from crypto investors and practitioners, and could see the attractiveness of this market greatly reduced.
In conclusion, the tax increase on cryptocurrencies in Italy marks a significant change in the way the government intends to deal with this emerging sector, and the implications could be profound for the country's digital economy
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