Italy weighs 28% crypto tax rate instead of 42%, report says

SUMMARY

Italy plans to adopt a 28% crypto tax rate, easing from the initially proposed 42%.
The decision signals a moderated approach to cryptocurrency taxation.

Article

Italy is set to approve a moderated increment in the tax rate on cryptocurrency trades, Bloomberg detailed. Prime Minister Giorgia Meloni’s government is anticipated to support a proposal from The League, a coalition partner, setting the crypto tax increment at 28%. This proposition contrasts with last month’s declaration by Vice Economy Minister Maurizio Leo, who recommended a steep 42% tax rate amid a budget presentation for 2025.

Currently, Italy levies a 26% tax on crypto gains surpassing €2,000, which was implemented amid the 2023 tax year. This replaced the earlier treatment of crypto as foreign currency, which had lower tax implications. The League’s proposition also aims to make a permanent working group that incorporates crypto firms and consumer associations, centering on educating investors about digital resources and their implications. This activity highlights an effort to bridge regulation with public awareness in the advancing crypto landscape.

Meanwhile, Forza Italia, another coalition member, submitted a separate revision pushing for the total abandonment of the tax increment. This proposition also looks to to expel the existing tax exemption for crypto gains of €2,000 or less, possibly broadening the tax base whereas giving clarity on taxable gains.

The government’s decision to take into account a less drastic tax increase shows that it is making an attempt to adapt to changing financial interests and the growth of the digital economy. In contrast to other European countries that might implement more stringent crypto taxation strategies, Italy presents itself as adopting a more reasonable stance by capping the prospective tax rate at 28%. The inclusion of educational programs demonstrates a dedication to developing a knowledgeable investor base that may support market stability and involvement.

Italian legislators will deliberate and finalize the tax proposition, deciding how best to integrate them into the national budget. The result will shape Italy’s administrative environment and impact the allure of its crypto market. This decision comes at a vital time as nations around the world reassess their tax structures to adjust to the growing digital economy.