Italy considers higher tax on cryptocurrency gains

Italy’s economy minister, Giancarlo Giorgetti, is open to reviewing proposals to raise the tax on cryptocurrency capital gains. The government’s 2025 budget, to be approved by parliament by December, includes a plan to increase the tax rate on capital gains from cryptocurrencies like bitcoin to 42% from 26%. This change is expected to bring in an additional 16.7 million euros annually, adding to the current 27 million euros collected from the existing tax rate.

Despite the modest revenue boost in a country with a budget exceeding 800 billion euros, the proposal has faced criticism, particularly from Giorgetti’s own League party. Lawmaker Giulio Centemero argued that raising the tax could be “counterproductive” and called for more in-depth dialogue with market participants to address the issue.

Giorgetti, however, defended the measure, stating that speculation should be taxed more. His comments indicate a willingness to adapt the proposal but also reflect his stance on ensuring that speculative investments face higher taxation. The outcome of these discussions will depend on ongoing negotiations within the government.