Italy’s government is poised to make significant changes to its taxation policy concerning cryptocurrency and digital services. Deputy Minister of Economy Maurizio Leo recently announced plans to raise the capital gains tax on Bitcoin investments from 26% to a striking 42%. This proposal was disclosed during a press conference held at Palazzo Chigi on October 16, coinciding with the introduction of the nation’s new budget law by the Council of Ministers.
According to the forthcoming budget draft, the increased taxation rate on Bitcoin capital gains reflects Italy’s ongoing adjustments to its financial regulations. The current valuation of Bitcoin stands at approximately €95,204, underscoring the potential impact of this policy on investors.
Changes to the Digital Services Tax In addition to the capital gains tax adjustments, Leo stated that the bill also aims to eliminate the minimum revenue requirements associated with Italy’s Digital Services Tax (DST), commonly referred to as the “web tax.” Initially implemented as part of the 2019 budget, the DST currently imposes obligations on companies that generate at least €750 million (about $817 million) globally and earn at least €5.5 million (around $5.9 million) from digital services within Italy over the preceding calendar year. Leo elaborated on these reforms, stating, “The tax on capital gains from Bitcoin will increase from 26% to 42%. In terms of web tax revenues, we are working to remove the ceiling of 750 million euros and 5 million euros in Italy, so we will abolish these thresholds.”
National Budget for 2025 This news comes as the Italian government successfully passed a €30 billion ($33 billion) budget proposal for 2025, which will partly rely on new taxation measures directed at domestic banks and insurance firms. However, these budgetary changes are pending approval from the Italian parliament, with a decisive vote anticipated by the year’s end. On October 15, Prime Minister Giorgia Meloni indicated that the government intends to borrow €3.5 billion from financial institutions to enhance public services and support the most vulnerable segments of society. She assured citizens via her social media channels, stating, “As we promised, there will be no new taxes for citizens,” and emphasized that the funds raised will be allocated to “health care and the most vulnerable in society to provide better care.” Previously, as highlighted by Cointelegraph, the Italian Senate had raised the capital gains tax on cryptocurrency trading exceeding €2,000 to 26% as part of the approved budget for 2023.
