Italy is set to increase the capital gains tax on cryptocurrencies from 26% to 42%, starting January 1, 2025. The government anticipates this tax hike will generate approximately €68 million ($73 million) in additional revenue.
This change, part of Italy’s 2025 Budget Law, marks a significant adjustment in the country’s approach to taxing crypto assets. Signed into law by President Sergio Mattarella, the measure aims to regulate the fast-growing crypto sector and raise government revenue.
Taxation of Digital Services and Crypto Activities (Source: Affaritaliani)
The budget law, consisting of 144 articles, includes several financial measures, with Article 4 specifically addressing the taxation of digital services and cryptocurrencies. The new tax rate will apply to investors involved in crypto trading, raising concerns about the future of crypto investments in the country.
Deputy Minister of Economy Maurizio Leo previously announced the legislation, explaining that the government’s objective is to tap into new revenue sources.
In addition to changes in crypto taxation, the law removes the minimum revenue requirement for Italy’s Digital Services Tax (DST), also known as the “web tax,” which was initially implemented in 2019. This tax affects digital services provided by large tech companies operating within Italy.
As the global crypto market continues to grow, such tax policies could have significant implications for investors worldwide.
