Italy Plans to Raise Bitcoin Capital Gains Tax from 26% to 42%
- Italy is raising the capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%.
- This decision is part of Italys 2025 budget plan to generate around 4 billion euros ($4.35 billion) in revenue.
As countries all over the world are mulling over imposing stringent digital currency regulations, Italy has decided to increase its capital gains tax on Bitcoin (BTC) from 26% to 42%. Vice Economy Minister Maurizio Leo announced this change during a press conference discussing the countrys budget for 2025. This announcement comes after measures approved by the Council of Ministers on Tuesday evening, which are intended to generate resources to support families, youth, and businesses.
Since the 2023 tax year, the government has taxed capital gains from Bitcoin exceeding 2,000 (about $2,180) at 26%. This change shifted the treatment of cryptocurrencies from foreign currency, which had lower tax rates. However, this current tax hike is part of Italys broader plan to raise approximately 4 billion euros ($4.35 billion) in 2025, targeting various sectors, including banks and gaming licenses.
Economic Pressures Prompt New Tax Strategies in Italy
The government is facing economic challenges, highlighted by a recent drop in inflation to below 1% in September. This low inflation rate underscores the urgency for the government to identify new revenue sources to enhance its economy
Further, the reports indicate that the UK may also raise capital gains taxes on digital assets. The current rate is 20%, and it could increase to as high as 39%.
With this new tax, Italy will now have one of the highest capital gains taxes on cryptocurrencies worldwide. For comparison, Germany taxes Bitcoin gains if sold within a year of acquisition but offers tax-free status for holdings longer than a year up to 600. India enforces a flat 30% tax on realized crypto gains, making it one of the strictest tax regimes globally.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
