The Italian government has announced a proposal to increase the capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%, marking a 62% rise from the current rate. This decision, revealed by Deputy Minister of Economy Maurizio Leo during the 2025 budget press conference, aims to generate additional revenue to support families, young people, and businesses. Italian taxpayers will be required to report their crypto holdings and capital gains through specific tax forms. The increase follows Italy's existing tax policy, which taxed cryptocurrency gains above €2,000 at 26%. This change is set to impact local cryptocurrency traders and investors significantly. Additionally, the government plans to eliminate existing thresholds for the web tax, aiming to enhance tax collection from digital services operating in Italy. This move aligns with recent changes in cryptocurrency taxation practices seen in other countries, including the UK.

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