Italy considers less severe crypto tax increase to 28% instead of 42%: report

The Italian government is likely to approve a milder tax increase on crypto trades, Bloomberg reported Tuesday, citing sources with knowledge of the matter.

The country’s government under Prime Minister Giorgia Meloni reportedly intends to accept a proposal from The League, a junior partner in Meloni’s coalition, which has set the crypto tax increase limit to 28%. Italy currently levies a maximum of 26% on crypto trades.

Last month, it was reported that Maurizio Leo, Italy’s vice economy minister, announced a steep rate hike in bitcoin gains tax to 42% during a press conference on the country’s budget for 2025.

The League’s proposal also contains an amendment to have the country establish a permanent working group consisting of crypto firms and consumer associations to educate investors on digital assets.

According to the Bloomberg report , a separate amendment from another coalition party Forza Italia, proposed abandoning the crypto tax increase entirely and remove the tax exemption for gains of €2,000 ($2,120) or less.

Italy’s 26% tax on crypto gains of above €2,000 came in the 2023 tax year, representing a shift from the previous treatment of crypto as foreign currency, which had lower tax rates.

The crypto tax rate increase, once determined, will be revised by Italian lawmakers before approval and implementation.