The Italian government has announced plans to increase the tax rate on capital gains from Bitcoin and other cryptocurrencies from 26% to 42%. This is an increase of approximately 62% from the current rate.
local economic news outlet Il sole 24 ore Deputy Economy Minister Maurizio Leo announced the move at a press conference on the 2025 budget. The measure is part of a broader effort to generate additional income to support families, young people and businesses.
Italian taxpayers are now required to list their virtual currency holdings on the “Redditi Personale Fisiche” form and clearly list any capital gains realized through their sale or other profits (possibly staking rewards). . Italian citizens are also required to list their virtual currency holdings on their 730 form in a section dedicated to foreign financial activities.
The latest development in Italy's approach to cryptocurrencies follows a consortium of companies developing a system based on the Ethereum scaling network Polygon in 2023 with support from a research hub backed by the Italian Central Bank. be. The effort focused on developing an “institutional DeFi for security tokens” ecosystem.
Starting from tax year 2023, Italy will tax all crypto capital gains over 2,000 euros (approximately $2,175) at a rate of 26%. This policy was introduced with the 2024 tax return. The proposed increase to 42% represents a major change in the country's approach to crypto taxation, and will impact local crypto traders and investors.
In addition to changes to crypto taxation, the government plans to adjust web taxes. Deputy Minister Leo announced the removal of existing criteria, including a cap of 750,000 euros ($815,000) and a limit of 5 million euros ($5.43 million) on revenue generated in Italy. The removal of these standards is aimed at streamlining tax collection from digital services operating in the country.
This news follows the UK's introduction of new rules for taxing cryptocurrencies last year. At the time, the Ministry of Finance announced that it would change the rules for crypto assets on the Self-Assessment (SA) system, requiring the amounts associated with crypto assets to be separately identified.
Edited by Andrew Hayward
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