Italy’s Deputy Finance Minister Maurizio Leo announced that they are contemplating a significant increase in taxes on capital gains derived from bitcoin (BTC) and other cryptocurrencies. According to Leo, the profits from these assets would go from being taxed from 26% to 42%, which represents an increase of 61.5%.
Maurizio Leo mentioned during a press conference on Tuesday, October 15 that the bitcoin “phenomenon” is spreading across the country, coinciding with a Chainalysis report that places Italy in 37th place in the global ranking of cryptocurrency adoption, within the top 50 nations. This data reflects a growing interest and use of these assets in the country.
This increase in the tax rate would make Italy the country with the highest tax on cryptocurrency profits globally. Currently, countries such as the United States and the United Kingdom They have lower taxes in this area. In the United States, long-term capital gains may be subject to rates of up to 20%, while in the United Kingdom the highest rate is 20% for capital gains.
Capital gains taxes with bitcoin and cryptocurrencies directly affect users and investors by reducing the net profitability of their investments. These types of taxes are applied when an individual sells or trades cryptocurrencies for a price higher than the price at which they were purchased.
For this tax increase to become law, the approval of the Italian Parliament is required. The process would involve the presentation of the 2025 budget bill, its debate in the relevant committees and its vote in both houses of Parliament. Once approved, it could be signed by the president of Italy for publication in the official gazette and entry into force.
The announcement of the tax increase came at a time when some renowned Italian banks, such as Banco Sella, one of the largest in the country, are expanding their services into the world of cryptocurrencies. As CriptoNoticias reported, these banks are offering bitcoin services to your customerswhich could be affected by new tax regulations.
The current 26% tax was approved in December 2022 as part of the Italian Parliament Budget presented by the government of Giorgia Meloni and has been in force since 2023. This tax establishes that those who exceed 2,000 euros in profits from cryptocurrency trading in the corresponding fiscal period, They must pay a rate of 26%. In addition, a “substitute tax” is established for investors who declare unreported cryptocurrencies in previous tax periods, which will be 3.5% plus a 0.5% fine for each year.
This increase in cryptocurrency income tax, if realized, could have a significant impact on the community of cryptocurrency investors and users in Italy, potentially discouraging investment in these assets or promoting tax strategies to minimize the tax burden.
The measure could also influence the strategy of Italian banks regarding the offer of services related to cryptocurrencies, adapting to the new fiscal conditions.
