Italy Crypto Tax 2025: Here’s What Investors Should Know

Italy is considering raising its Bitcoin capital gains tax from 26% to 42% as part of a broader effort to increase government revenue. On October 16, Deputy Economy Minister Maurizio Leo announced the proposal during a press conference. This tax hike is part of Italy’s 2025 budget plan, which focuses on balancing the country’s finances by targeting cryptocurrency and digital services.

In addition to raising Bitcoin taxes, Italy plans to eliminate the revenue thresholds for its digital services tax (DST). Previously, this tax applied only to global companies like Meta and Google, which had to meet certain requirements: global sales of €750 million and at least €5.5 million in Italy.

By removing these limits, the DST will now apply to more local digital businesses, increasing its scope and impact.

How Italy’s 2025 Budget Will Be Funded

The 2025 budget, worth €30 billion ($33 billion), will be funded largely through taxes on banks and insurance companies. The government expects to collect €3.5 billion from financial institutions, while the expanded web tax and higher crypto taxes will bring in an additional €68 million.

Prime Minister Giorgia Meloni has assured the public that the revenue will go toward improving public services, such as healthcare and social welfare, without increasing taxes on the general population.

Crypto Regulations in Europe

Italy’s tax changes are part of a larger European push for stricter cryptocurrency regulations. New policies will strengthen Know Your Customer (KYC) and anti-money laundering (AML) standards to improve transparency in the crypto market. While these rules may make it harder for some crypto businesses to operate, they are expected to enhance market stability and attract more institutional investors over time.

Italy’s move to regulate and tax the fast-growing cryptocurrency sector reflects a broader trend in Europe to bring digital assets under more traditional financial rules.

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While these measures may present challenges for the industry, they also aim to make the European crypto market safer and more reliable for long-term growth.

Do you agree or disagree with Italy’s approach to taxing cryptocurrencies? Let us know.