Italy's Crypto Tax: What You Need to Know About the 26% Capital Gains Tax
Are you a crypto investor in Italy? Stay informed about the evolving tax landscape. This article breaks down Italy's plans regarding cryptocurrency taxation, focusing on the current 26% capital gains tax and potential future changes.
Italy Implements 26% Tax on Crypto Profits
As of May 2, 2025, Italy introduced a 26% tax on cryptocurrency profits, impacting both individual and business investors. This new tax policy is expected to influence investment patterns and the overall adoption of cryptocurrencies within the country.
The Back-and-Forth on Tax Hikes: From 26% to 42% and Back Again?
There was significant discussion and consideration around increasing the capital gains tax on cryptocurrencies like Bitcoin. On October 16, 2025, Deputy Economy Minister Maurizio Leo indicated the Italian government was considering raising the capital gains tax from 26% to 42% as part of the 2025 budget plans. Sources like Reuters and Bloomberg echoed this, reporting that Italy planned to raise taxes on capital gains on cryptocurrencies to 42%.
However, plans to increase the crypto capital gains tax to 42% faced industry pushback and internal political opposition. Ultimately, on December 11, 2025, the Italian government reportedly abandoned these plans. An amendment was proposed to limit the tax increases, suggesting a retreat from the initially proposed 42% rate.
Current Status: 26% Capital Gains Tax Remains
Currently, crypto capital gains in Italy exceeding €2,000 are taxed at 26%. Keep an eye on future developments as the regulatory environment surrounding cryptocurrency in Italy is still evolving. This page will be updated with the latest information.
Key Takeaways:
- Current Tax Rate: 26% on crypto capital gains exceeding €2,000.
- Potential Changes: Previous plans to increase the tax to 42% were reportedly abandoned due to industry and political pressure (December 11, 2025).
- Impact: The 26% tax policy impacts both individual and business investors (May 2, 2025).
- Stay Informed: The regulatory landscape is dynamic; continue to monitor updates.