Italy is increasing the capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42% as part of its 2025 budget plan, aiming to raise approximately 4 billion euros ($4.35 billion) in revenue. This move is part of broader efforts to tighten digital currency regulations, following a global trend. Vice Economy Minister Maurizio Leo announced the tax hike during a press conference about Italy’s 2025 budget, which includes measures to support families, youth, and businesses.
Since 2023, the government has taxed Bitcoin gains exceeding €2,000 ($2,180) at 26%, a shift from its previous treatment as foreign currency with lower tax rates. The new tax is part of Italy’s strategy to address economic pressures, including low inflation, which fell below 1% in September, prompting the search for new revenue sources to strengthen the economy.
Italy’s decision places it among the countries with the highest capital gains taxes on cryptocurrencies globally. For comparison, the UK is considering raising its current 20% tax on digital assets, potentially to 39%, while Germany taxes Bitcoin sales if sold within a year, but offers tax-free status for longer holdings. India imposes a flat 30% tax on crypto gains, one of the strictest policies worldwide.
