Italian Government's Crypto Tax Proposal
The Italian government is likely to approve a milder tax increase on crypto trades, as reported by Bloomberg on Tuesday.
Proposed Tax Changes
Under Prime Minister Giorgia Meloni, the government intends to accept a proposal from The League, a junior partner in the coalition, which sets the crypto tax increase limit to 28%. Currently, Italy levies a maximum tax of 26% on crypto trades.
Recent Developments
Last month, Maurizio Leo, Italy’s vice economy minister, announced a proposal for a steep hike in the bitcoin gains tax to 42% during a press conference on the country’s budget for 2025.
Educational Initiative
The League’s proposal includes an amendment to create a permanent working group with crypto firms and consumer associations aimed at educating investors on digital assets.
Alternative Proposals
A separate amendment from another coalition party, Forza Italia, suggests abandoning the crypto tax increase completely and removing the tax exemption for gains of €2,000 ($2,120) or less.
Current Tax Context
Italy's 26% tax on crypto gains exceeding €2,000 was implemented in the 2023 tax year, marking a significant shift from previously treating crypto as foreign currency with lower tax rates.
Next Steps
Once determined, the crypto tax rate increase will be revised by Italian lawmakers before it receives final approval and implementation.
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