Italy’s government is proposing a significant increase in the capital gains tax on Bitcoin investments as part of its 2025 budget plan.
During a recent press conference, Deputy Economy Minister Maurizio Leo announced that the tax rate on Bitcoin capital gains would rise from 26% to 42%. Minister Leo explained that this tax hike is part of a broader initiative to expand Italy’s tax base and reflects the growing importance of digital assets in the economy. The increase is expected to affect both institutional investors and individual cryptocurrency traders.
In addition to the Bitcoin tax hike, the government is revamping the Digital Services Tax (DST), which was introduced in 2019. The current DST applies only to companies generating at least €750 million globally and €5.5 million from digital services in Italy. The new proposal aims to eliminate these thresholds, expanding the tax to include a broader range of companies, from major tech firms to smaller digital businesses.
These tax reforms are part of a €30 billion ($33 billion) budget package, which Italy’s Council of Ministers recently approved. The budget includes taxes on banks and insurers to fund essential public services like healthcare and provide support for vulnerable populations. Prime Minister Giorgia Meloni emphasized that while banks and insurers will face higher taxes, there will be no new direct taxes on individuals. In a post on X, Meloni reaffirmed the government’s commitment to protecting citizens from new taxes while ensuring that the additional revenue will be used for vital services.
The entire budget package, including the tax increases, is set for parliamentary debate and final approval by the end of the year.
This move appears to be one of Italy’s efforts to regulate digital assets. The Bank of Italy recently announced that it is preparing to issue guidelines for the implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation in the country. This framework aims to provide clear rules for the country’s crypto sector and align the region-wide regulatory changes.
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