Italy raises capital gains tax on Bitcoin to 42%, cancels minimum revenue threshold for digital service tax

The Italian government is considering increasing the capital gains tax on Bitcoin investments. In 2022, the capital gains tax on Bitcoin transactions exceeding 2000 euros was raised to 26%, and it is now proposed to increase to 42%. Maurizio Leo, the Deputy Minister of Economy of Italy, mentioned during a press conference at Palazzo Chigi on October 16th that this new measure is part of the new Italian budget, which has already been approved by the cabinet. In addition, Italy also plans to eliminate the minimum revenue threshold for the Digital Service Tax (DST) and expand the scope of its application.

Bitcoin Capital Gains Tax Increased to 42%, DST Revenue Threshold Removed

Leo stated that the capital gains tax on Bitcoin investments will be increased from the current 26% to 42%, aiming to strengthen regulation on cryptocurrency trading through tax reform and thereby increase government revenue.

Leo further mentioned that the new budget will eliminate the minimum revenue threshold for the Digital Services Tax (DST). The DST, introduced in 2019, currently applies to companies with annual revenues of at least 7.5 billion euros (approximately 8.17 billion US dollars) and those earning at least 5.5 million euros (approximately 5.9 million US dollars) in Italy. The threshold will be removed to bring more digital service companies into the tax scope.

Italy Taxes Banks and Insurance Companies to Raise 3.5 Billion Euros for Healthcare and Vulnerable Groups

The Italian government recently approved a budget of 30 billion euros (approximately 33 billion US dollars) for 2025, with part of the funds coming from taxing banks and insurance companies. According to Italian Prime Minister Giorgia Meloni, Italy expects to raise 3.5 billion euros through the new budget to enhance public services and support vulnerable groups. Meloni emphasized that the new budget will not increase individual tax burden, with the funds mainly allocated for improving healthcare and services for vulnerable populations.