Italy set to hike Bitcoin capital gains tax from 26% to 42%

[zasad@]

https://www.msn.com/en-us/money/markets/italy-set-to-hike-bitcoin-capital-gains-tax-from-26-to-42/ar-AA1sn6qM

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.

This decision is part of the effort to fund election promises and tackle the country’s fiscal deficit. The plan was confirmed by Deputy Finance Minister Maurizio Leo, who called it necessary due to the increasing influence of Bitcoin.

Europe aligns on crypto regulations
Italy’s decision to increase Bitcoin taxes coincides with the European Union’s new crypto regulation package known as MiCA (Markets in Crypto-Assets), which will fully take effect at the end of this year.

Prime Minister Giorgia Meloni’s cabinet is also planning to tax Italy’s banks and insurance companies to finance a massive budget, set to deliver on election promises.

Meloni took to X to assure citizens that no new taxes will be introduced for the general public, stating that €3.5 billion from banks and insurance companies will go toward healthcare and the country’s most vulnerable.

Notably, the post didn’t explain how the money will be raised or when it will start flowing into state coffers. The Italian Treasury has only confirmed that the financial sector will contribute to the spending plan, leaving many details unclear.

Finance Minister Giancarlo Giorgetti is expected to offer more insight at a press conference scheduled for tonight in Rome.

Ministers agreed late yesterday on a package valued at €30 billion ($33 billion) for 2025. This ends weeks of back-and-forth."

[Oshosondy]

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.

I see this as a way to discourage their citizens from buying bitcoin and other cryptocurrencies. 26% capital gain tax is too much, not to talk of 42%. That is too much.

If some people just go the noncustodial wallet way and sell their coins directly to another person or make use of an exchange that does not have KYC, should these kind if people be blamed?

What I mean is that the more the government increase the capital gain tax, the more people will try to avoid paying the tax. Also this is discouraging people from buying cryptocurrencies.

[YOSHIE]

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.

The initial tax of 26% alone has made Bitcoin users in Italy scream, what's more, it wants to increase it to 42% of capital gains on Bitcoin, this is a law and regulation that kills Crypto users/investors, this is the same as tying a rope around the neck of Bitcoin users in Italy.

How can the government do that, don't they think 42% tax is not a small amount that should be cut, if it applies legally, this is really suffocating and killing for crypto users, I hope that some of them/the government will deny and not agree to the law that applies a 42% tax on Bitcoin in Italy.

[Free Market Capitalist]

As much as she wanted to deny it, her attachment to fascism, which is nothing more than a variant of socialism, shows in things like this. As with modern parties, the labels are too simplistic for what the party stands for and a party like this one is considered just as right wing as the party of Javier Milei when they have notable differences in economic policy.

Let's see if someone can get Meloni an appointment with Artur Laffer to explain her how it works, because she doesn't seem to know.

[SFR10]

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.
...
Meloni took to X to assure citizens that no new taxes will be introduced for the general public,

Regardless of whether this proposal gets the final approval or not, their so-called Prime Minister should at least know that by raising the tax ^{[on anything]} they're also introducing new taxes to the general public ^{[especially for ordinary people (the wealthy ones will just migrate)]}!

[Z-tight]

42% capital gains tax is the closest thing to a silent or soft ban, that is nearly half of the gains an investor made on the sale of their BTC asset, it is crazy and i don't know how bitcoiners in Italy will take this news, and what their next action will be. So because they claim they want to deliver on election promises, they raise taxes and make it exorbitant for some of the people who voted for them.

[Fiatless]

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.

This is bad news. Did the government give any incentive to Bitcoin hodlers when the price was down? Now they are targeting the gains after people have invested and patiently waited for it to grow. Bitcoiners that have large holding can decide to leave the country because this tax is excessive.

I see this as a way to discourage their citizens from buying bitcoin and other cryptocurrencies. 26% capital gain tax is too much, not to talk of 42%. That is too much.

If some people just go the noncustodial wallet way and sell their coins directly to another person or make use of an exchange that does not have KYC, should these kind if people be blamed?

What I mean is that the more the government increase the capital gain tax, the more people will try to avoid paying the tax. Also this is discouraging people from buying cryptocurrencies.

I have not seen the provisions of this tax law. However, hiding your income from the authorities with the intention of not paying tax is called tax evasion, which is a criminal offence. While seeking legal means to reduce your tax is called tax avoidance. It will all depend on Italian tax laws to determine if engaging in secret P2P transactions is illegal.

[avikz]

Horrendous! This kind of taxation is going to discourage crypto adoption. It will also discourage people in disclosing their actual crypto investment. People will try to find alternate ways to cash out there cryptocurrency investment. Not really good!

In my country, cryptocurrency tax is 30%. It actively discourages people from investing in crypto. Also a lot of people do not disclose their crypto holdings and uses foreign exchanges. Not ideal!

[pakhitheboss]

"Italy is ramping up its tax on Bitcoin. The government plans to raise the capital gains tax on Bitcoin from 26% to 42%.

This decision is part of the effort to fund election promises and tackle the country’s fiscal deficit. The plan was confirmed by Deputy Finance Minister Maurizio Leo, who called it necessary due to the increasing influence of Bitcoin.

I still think the tax percentage is very low compared to what we are paying in India. We Indians are paying 30% flat on capital gain and for every transaction we make on the exchange we will be paying another 1% in tax deduction at source. As an example, if a trader does 30 transactions then he will be paying 30% as tax deducted at source and a capital gain tax to add to the misery, which comes around to 60% of a trader's earnings going as tax. Just imagine how much someone loses money while trading and still he is eligible to pay tax on the amount he has traded.

[Z-tight]

Bitcoiners that have large holding can decide to leave the country because this tax is excessive.  

That is indeed a real possibility, people who own large BTC holdings will consider such measure, it could be a better option than giving the government almost half of the profit from the sale of your BTC. I consider it to be a better option than tax evasion which is a crime and punishable by law.

I still think the tax percentage is very low compared to what we are paying in India. We Indians are paying 30% flat on capital gain and for every transaction we make on the exchange we will be paying another 1% in tax deduction at source.

I have read about the situation in India and it is a crazy one too, if these governments do not want their citizens to use BTC, then they better ban it, instead of extorting bitcoiners through overtaxation.

[EFS]

42% tax? Even 26% is too high. I think this is how the Italian government thinks it can control its citizens, but that's wrong. Italians can safely exchange their Bitcoin while vacationing in Türkiye and return home with cash money or other valuables in their pockets. There are many other countries where they can do this. It's actually to the detriment of the country to impose high taxes in this way, people will use different ways to avoid taxes and the amount of taxes collected by the country will decrease. High taxes don't mean high revenues for the government. Meloni should study Economics 101 before taking such a silly decision.

[Davidvictorson]

What I mean is that the more the government increase the capital gain tax, the more people will try to avoid paying the tax. Also this is discouraging people from buying cryptocurrencies.

Well at this point it will be hard for the government to succeed in discouraging anyone from buying Bitcoin or any cryptocurrencies. I am also agreeing that the increment doesn't look user friendly but that's what the government does, don't they? Some very rich Italian crypto citizens may now be looking to move out of the country to a place where there's no tax on Bitcoin or crypto just like Dubai but I think their government wouldn't make it easy for them either to just wake up and leave in order to avoid paying taxes.

[pakhitheboss]

I have read about the situation in India and it is a crazy one too, if these governments do not want their citizens to use BTC, then they better ban it, instead of extorting bitcoiners through overtaxation.

That is the problem in India as it is a democratic country the government cannot ban Bitcoin without proper justification. The only way to stop people from investing in Bitcoin is by creating an atmosphere of fear, uncertainty and big taxes. Few months back they had shadow ban 7 international exchanges as they were not FIU (Financial intelligence unit) compliant. Although a few have now become compliant but at that time when the shadow ban was placed it was not at all easy to access those exchanges. I don't think the situation in India will change in the future as the government is getting a huge revenue from crypto tax.

[Free Market Capitalist]

42% tax? Even 26% is too high. I think this is how the Italian government thinks it can control its citizens, but that's wrong.

Well, and the one in power is supposed to be right-wing, or extreme right-wing. Wait until the socialists are back in power and see what happens.

Italians can safely exchange their Bitcoin while vacationing in Türkiye and return home with cash money or other valuables in their pockets.

Well, that's capped at €10K. Someone with more than that will have to make several round trips. There are other ways, too, as you can go to Turkey and come back with €9,990 in cash and have bought a watch there worth say 25K, which has no problems at customs. What happens is that if you want to sell it immediately on your return in Italy you will lose money with the operation but less than 42%.

Meloni should study Economics 101 before taking such a silly decision.

Yes, or have a meeting with Laffer, as I was saying before and have him explain a couple of basic things.

[Z-tight]

Although a few have now become compliant but at that time when the shadow ban was placed it was not at all easy to access those exchanges. I don't think the situation in India will change in the future as the government is getting a huge revenue from crypto tax.

Yeah, i read about that news, Binance was one of the global exchanges banned from operating in India, but they have worked things out with FIU-IND and they now operate legally in the country, but not without paying a fine, if i remember correctly, it was ~ $2m, so it is really a slap on the wrist for Binance.

Kucoin were also fined, and i believe OKX has left the Indian market, it is a hostile enviroment for crypto users and firms in India and i don't think there would be any repreive in the future, maybe a change of leadership?

[yhiaali3]

Very bad decision by the Italian government, is this how the Italian government plans to address the country's fiscal deficit? I don't know who is the genius who advised them with this wonderful plan to make people evade taxes.

These are stifling laws for crypto in the country, instead of the Italian government thinking to legislate more lenient laws that attract investments and capital to the country, they think in a terrible opposite way that leads to the flight of investors and capital or tax evasion.

The irony is that I was reading a little while ago news about the UAE exempting cryptocurrencies from value-added tax, perhaps Italian investors are now thinking of going to the Emirates.

[pakhitheboss]

Kucoin were also fined, and i believe OKX has left the Indian market, it is a hostile enviroment for crypto users and firms in India and i don't think there would be any repreive in the future, maybe a change of leadership?

Kucoin was the first international exchange that became FIU compliant. OKX left the Indian market in March 2024 due to the pressure created by the Indian government. I don't think a change in leadership can solve the issue as it is now very late. The central election were conducted this year and party that has been in power for the past 10 years has again won the election. They will now be governing India for another 5 years.

[zasad@]

More bad news from Denmark

https://x.com/MadsEberhardt/status/1849151928401306059?

"BREAKING: Denmark becomes the first country in the world to tax unrealized capital gains on crypto, starting January 1, 2026. The tax on unrealized capital gains is 42%.

This will affect not only crypto acquired from that date but also crypto obtained as far back as the genesis block of Bitcoin in January 2009.

The gloves are off. This is a war on crypto."

https://skm.dk/aktuelt/presse-nyheder/pressemeddelelser/ny-rapport-fra-skattelovraadet-kryptoaktiver-boer-fremover-lagerbeskattes

[zasad@]

https://bravenewcoin.com/insights/italy-reduces-proposed-crypto-tax-hike-to-28-amid-industry-concerns
Italy Reduces Proposed Crypto Tax Hike to 28% Amid Industry Concerns

"In a significant policy shift, Italy is expected to lower its proposed increase in the capital gains tax on cryptocurrency transactions from 42% to 28%.

This decision reflects an attempt to balance the government’s revenue goals with concerns about the potential impact of high taxes on the country’s digital asset market. The proposed reduction has gained traction within Prime Minister Giorgia Meloni’s coalition, with an amendment led by the League party, which is aimed at making Italy more appealing to crypto investors.

Why Italy’s Government Scaled Back the Increase
The original proposal, part of Italy’s October budget draft, sought a sharp rise in the tax rate to 42%, up from the existing 26%. This aggressive move was designed to increase tax revenue as Italy works to stabilize its public finances amid the reinstatement of European Union fiscal policies."

[AsiaHODL]

We lose our wallet in a boating accident. Or move overseas where we get treated best. Physical assets like land can be taxed/confiscated/seized. BTC cannot.