Italy Proposes 42% Tax on Cryptocurrency Capital Gains

The Italian government aims to increase the tax rate on crypto profits from 26% to 42% as part of its 2025 budget plan.

The tax hike is intended to generate additional revenue to support families, youth, and businesses in Italy.
Italian citizens will need to declare their crypto holdings and gains on specific tax forms under the new proposal.
Critics warn that the drastic increase could lead to a brain drain and capital flight from Italy.
The proposed tax would apply to direct crypto investments, while crypto-backed financial products would remain taxed at 26%.
The measure is pending approval as part of the 2025 financial bill, leaving investors uncertain about future tax obligations.