Increased tax rate

Italy asks crypto investors to pay more

In order to replenish the empty state coffers, the Italian government wants to make crypto investors pay more. Profits on Bitcoin and other digital currencies are to be taxed at 42% in future. 

From 2025, the government will increase the tax rate on profits from crypto transactions from the current 26% to 42%, announced Deputy Minister of the Economy Maurizio Leo. The current tax-free amount will remain at 2,000 euros.

Between 2022 and 2024, the number of people in Italy who hold cryptocurrencies (e.g. Bitcoin) in their portfolio more than doubled, from eight to 18 percent. The proportion of people investing in sustainable investment products has also risen from eleven to 20 percent, according to the latest report from the Italian securities regulator Consob.

The increased taxation of bitcoins is one of numerous measures included in the draft budget for 2025, which the government led by Prime Minister Giorgia Meloni presented on Tuesday. The draft budget contains measures worth a total of 30 billion euros. For example, tax rebates for low-income families are planned.

"Sacrifices" for banks and insurance companies
The Italian government also wants to raise more than 3.5 billion euros next year with a special tax on insurance companies and banks. The new tax is expected to raise 2.5 billion from banks and around one billion from insurance companies. Deputy Economics Minister Maurizio Leo said on Wednesday that life insurance companies would be exempt from the tax.

Finance Minister Giancarlo Giorgetti told journalists on Wednesday that some were talking about an excess profits tax, others about a "contribution". "I call this a sacrifice." Banks, insurance companies and ministries would have to make sacrifices. The revenue would be put "into the healthcare system", explained Giorgetti.