Italy Will Increase Tax on Crypto by 28%

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The Italian government is expected to approve a more lenient tax increase on cryptocurrency trades.

The proposal, put forth by The League, a partner in Prime Minister Giorgia Meloni’s coalition, would set the tax hike limit to 28%, up from the current maximum of 26%.

Last month, during a press conference on the country’s budget for 2025, Vice Economy Minister Maurizio Leo announced a steep increase in the tax rate on Bitcoin gains to 42%.

The League’s proposal also includes an amendment to create a permanent working group made up of crypto companies and consumer associations, aimed at educating investors on digital assets.

However, another coalition party, Forza Italia, is proposing to completely eliminate the planned crypto tax increase and remove the tax exemption for gains under €2,000 ($2,120).

Italy had previously treated crypto as foreign currency, which had lower tax rates, but in the 2023 tax year, the tax on crypto gains above €2,000 was increased.