The Italian government is considering a significant increase in the capital gains tax on Bitcoin, raising it from 26% to 42%, according to Deputy Economy Minister Maurizio Leo. The proposal is part of Italy’s new budget bill, which was approved by the Council of Ministers and could bring major changes to the taxation of cryptocurrency and digital services.
Bitcoin Capital Gains Tax Could Rise to 42%
During an Oct. 16 press conference at Palazzo Chigi, Minister Leo discussed the details of Italy’s latest budget, which aims to increase the withholding tax on Bitcoin capital gains to 42%. If approved, this would mark a substantial rise from the current rate of 26%, reflecting the government’s efforts to collect more revenue from crypto investments.
The proposal comes amid broader tax reforms, with a focus on ensuring that the growing cryptocurrency sector contributes more significantly to the national budget.
Elimination of Revenue Minimum for Digital Services Tax
In addition to raising the Bitcoin tax, Italy plans to overhaul its Digital Services Tax (DST). Introduced in 2019, the DST applies to large digital companies that generate at least 750 million euros globally and 5.5 million euros from digital services in Italy. However, under the new budget, these revenue minimums would be scrapped, broadening the scope of companies subject to the tax.
Minister Leo stated that removing the revenue thresholds would ensure that more businesses pay their fair share, particularly in the fast-growing digital economy. “On web tax revenues, we are working to eliminate the ceiling of 750 million euros and 5 million in Italy, therefore eliminating the thresholds,” Leo explained.
Broader Budget Plans and Banking Levy
Italy’s government recently approved a 30 billion euro ($33 billion) budget for 2025, which includes a controversial levy on banks and insurance companies. The government expects to raise 3.5 billion euros from the financial sector to fund improvements in public services and assist vulnerable populations.
Prime Minister Giorgia Meloni announced that, despite the tax increases on banks and insurers, there would be no new taxes for individual citizens. In a statement on X (formerly Twitter), Meloni emphasized that the funds raised would go toward improving healthcare and supporting the most vulnerable in society.
Recent Crypto Tax Changes in Italy
This proposed increase in the Bitcoin capital gains tax follows a previous move by Italy to raise taxes on cryptocurrency trading. In late 2022, the Senate approved a 26% capital gains tax on crypto asset transactions exceeding 2,000 euros, as part of the 2023 budget. The new proposal would further increase the financial obligations of crypto investors, signaling a tightening regulatory approach toward digital assets.
