- Italy raises the crypto gains tax from 26% to 42% for profits over €2,000
- The tax applies to all cryptocurrencies, including Bitcoin
- The new tax policy is part of Italy’s 2025 financial plan
News comes from Deputy Minister of Economy Maurizio Leo like a bolt from the blue. During the presentation conference of the 2025 financial manoeuvre, he has presented some new measures to support families and businesses.
He is speaking of Bitcoin, but his explanation applies to all cryptocurrencies: “We forecast an increase in the withholding tax on capital gains deriving from Bitcoin, from 26% to 42%.”
What Does it Mean?
In other words, those annual capital gains in excess of 2,000 euros, until now taxed at 26%, will now be taxed at 42%.
Simplifying: Just a small example to clarify: if you went from 5,000 euros to 10,000 euros with your cryptocurrencies, you will pay taxes on 3,000 euros taxed at 42%; therefore, you will have to pay 1,260 euros.
That same 3,000 euro capital gain would have cost you 780 euros at the old rate of 26%. At 42%, that is an additional tax of 480 euros.
Not nice, huh? Actually, this is one of those very bad moments to raise the tax for the cryptocurrency sector.
This is a real unfair blow dealt to Italian investors. This increase in taxation, from 26% to 42% on crypto gains above 2,000 euros, set within the 2025 financial plan, indeed weighs heavily on owners of cryptocurrencies, and much more careful tax planning will be needed in this crucial moment for the market.
Conclusion
What are your thoughts? I really feel this is something that can make a lot of people rethink their strategy. This is not a minor adjustment; it’s pretty serious on a financial basis.
