Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.
This decision is part of the effort to fund election promises and tackle the country’s fiscal deficit. The plan was confirmed by Deputy Finance Minister Maurizio Leo, who called it necessary due to the increasing influence of Bitcoin.
Europe aligns on crypto regulations
Italy’s decision to increase Bitcoin taxes coincides with the European Union’s new crypto regulation package known as MiCA (Markets in Crypto-Assets), which will fully take effect at the end of this year.
Prime Minister Giorgia Meloni’s cabinet is also planning to tax Italy’s banks and insurance companies to finance a massive budget, set to deliver on election promises.
Meloni took to X to assure citizens that no new taxes will be introduced for the general public, stating that €3.5 billion from banks and insurance companies will go toward healthcare and the country’s most vulnerable.
Notably, the post didn’t explain how the money will be raised or when it will start flowing into state coffers. The Italian Treasury has only confirmed that the financial sector will contribute to the spending plan, leaving many details unclear.
Finance Minister Giancarlo Giorgetti is expected to offer more insight at a press conference scheduled for tonight in Rome.
Ministers agreed late yesterday on a package valued at €30 billion ($33 billion) for 2025. This ends weeks of back-and-forth.
