.png){kind=logo}
The government of Italy, due to criticisms from the crypto community and the stakeholders in the economy, is considering possibly bringing down the expected capital gains tax on cryptocurrencies from 42% down to 28%. European regulators have sought to make this change to develop the industry and preserve the competitiveness of the European Union in the rapidly growing crypto market. This amendment, proposed during the announcement of Italy’s 2025 budget, is said to be backed by the coalition of Prime Minister Giorgia Meloni.
This tax suggestion occurs as the EU plans to enforce the Markets in Crypto Assets (MiCA) regulations and establish a legal framework for states in the region. Italy has taken an active approach to such changes to better support the broader EU crypto policies and place potential digital asset taxation in a flexible environment corresponding to market trends.
Several political leaders in Italy have been critical of the proposed tax starting rate of 42%. Giaturio, Giorgetti, currently the Italian Minister of Economy and Finance, has not ruled out reshuffling the tax system to lean more toward encouraging investors into the sector. At the same time, Giulio Centemero, a member of the Chamber of Deputies, noted that the tax rate is counterproductive and called for an open dialogue with sector participants.
The suggested lowering to 28 %, albeit higher than the current 26%, is viewed as a compromise, to boost tax revenues while appeasing the digital asset market. The government believes that the change in the tax rate will bring in considerable annual revenues, although not up to the $18 million anticipated in the initial proposal.
While Italy is struggling with its fiscal policy changes, other EU countries have also started to rethink their strategies for taxing cryptocurrencies. For instance, Denmark suggested a mark-to-market model where the changes in the valuation of crypto assets are subjected to an annual tax. This method makes it possible to see how governments seek to implement their taxation policies based on the emergence of characteristic features of digital currencies.
