Italy Plans to Raise Bitcoin Capital Gains Tax from 26% to 42%
Italy intends to increase the capital gains tax on Bitcoin from 26% to 42% as part of a strategy to fund costly election commitments while reducing the budget deficit.
- On Wednesday, Italy unveiled its draft budgetary plan (DBP), which outlined new revenue-raising strategies.
- The proposal to hike bitcoin taxes accompanies the country's aim to generate 0.2% of its gross domestic product (GDP), translating to approximately 4 billion euros ($4.35 billion) by 2025.
- The plan also includes raising funds through new tax regulations targeting banks, insurance products, gaming business licenses, and adjustments to the web tax.
According to Deputy Finance Minister Maurizio Leo, Prime Minister Giorgia Meloni’s cabinet decided on this action because the "phenomenon is spreading," referring to Bitcoin.
- The new budget measures are still awaiting approval from the Italian parliament, with a final vote anticipated by the end of the year. If enacted, a 42% capital gains tax on bitcoin would make Italy one of the highest-taxed countries for cryptocurrency in the world.
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