Italy raises capital gains tax on Bitcoin

The substitute tax on Bitcoin will be increased to 42% from the current 26% in 2025. This was announced by Deputy Minister of Economy Maurizio Leo during the press conference on the budget.

Italy raises capital gains tax on Bitcoin

"Since the phenomenon is spreading, we are taxing it more," Leo explained. A bolt from the blue, no one expected it.

"The substitute tax of 42% planned for 2025 would be fiscally discriminatory and therefore unfair, probably even unconstitutional," said Federico Ametrano, CEO and co-founder of CheckSig.

"Like all poorly conceived ideas, it would have the damaging effect of causing crypto capital to flee from Italy, creating market distortions and inducing investors to realize the capital gain by the end of 2024."

Confusion for investors

Furthermore, it would create an unreasonable imbalance compared to investments in ETPs, ETCs and Bitcoin ETFs, which are taxed at 26%. Finally, the damage to the Italian industry that provides services in the crypto field would be enormous.

Experts hope for a discussion with the Ministry of Economy and Finance aimed at effectively strengthening tax collection without unreasonable inequalities.