tl;dr
The Italian government is considering reducing the proposed increase in crypto capital gains tax from 42% to 28% in a move to support investor interest. The League, a key coalition member, has submitted an amendment to cap the tax rate at 28%, with Prime Minister Giorgia Meloni's administration like...
Italian Government's Proposal to Reduce Crypto Capital Gains Tax Italian government reduces proposed crypto capital gains tax to 28% from 42%, signaling a shift toward more favorable crypto policies.
Coalition proposals aim to address investor concerns and attract digital asset investments.
Government may lean towards adopting the League’s amendment as part of the finalized budget, indicating flexibility in crypto tax.
Italy considers differentiated taxation based on investment duration, balancing revenue generation and competitiveness.
Detroit plans to allow residents to pay taxes in cryptocurrency by mid-2025, aiming to become a leader in blockchain applications within public services.
The Italian government is considering reducing the proposed increase in crypto capital gains tax from 42% to 28% in a move to support investor interest. The League, a key coalition member, has submitted an amendment to cap the tax rate at 28%, with Prime Minister Giorgia Meloni's administration likely to back the proposal. The government is also considering additional adjustments, including differentiated taxation based on investment duration and establishing a working group with digital-asset firms and consumer organizations. These proposals reflect a willingness to reconsider tax policies to attract and retain digital asset investments.
The Italian government is reportedly advancing a proposal to reduce the planned increase in crypto capital gains tax to 28%, a move anticipated to support investor interest. The League, a key member of Prime Minister Giorgia Meloni’s coalition, has submitted an amendment to cap the proposed tax rate at 28% rather than the initially suggested 42% outlined in the October budget draft.
ITALIAN GOVERNMENT CUTS PROPOSED CRYPTO TAX TO 28% FROM 42%
According to sources, Prime Minister Giorgia Meloni’s administration is likely to back the League’s amendment, which could mark a shift toward more favorable crypto policies in Italy. The initial proposal to raise the tax rate to 42% was part of a broader economic plan aimed at increasing revenue for the 2025 budget.
advertisement
However, industry representatives expressed concerns that such a high rate would make Italy less attractive for cryptocurrency-related activities and investments. The League’s amendment suggests a compromise, setting the tax rate at 28%, which would still be above the current 26% but considerably lower than the initially planned 42%.
Sources close to the government have noted that further adjustments to the proposal are still possible before it receives final approval.
COALITION PROPOSALS AIM TO ADDRESS INVESTOR CONCERNS
In addition to the League’s amendment, Forza Italia, another coalition party, has proposed separate adjustments. This proposal seeks to scrap the crypto tax increase altogether and eliminate the current tax exemption for gains below €2,000. Both proposals suggest a willingness within Italy’s governing coalition to reconsider tax policies to attract and retain digital asset investments.
Moreover, the League’s proposal includes establishing a permanent working group with representatives from digital-asset firms and consumer organizations. The objective is to promote transparency and provide resources to educate investors about crypto tax.
Although no final decision has been made, sources close to the matter suggest that the government may lean towards adopting the League’s amendment as part of the finalized budget. More so, finance Minister Giancarlo Giorgetti indicated flexibility regarding the crypto tax. He suggested that Italy might consider differentiated taxation based on investment duration. This proposal could offer investors favorable conditions if they hold digital assets for extended periods.
The Ministry has acknowledged the need for a balanced approach that considers both revenue generation and the country’s competitiveness.
This tax adjustment comes as the country works to stabilize public finances under European Union guidelines. Similar tax policies have been implemented globally, with mixed results. For example, India’s recent cryptocurrency tax raised concerns among investors, leading many to shift to overseas exchanges.
In a related update earlier this month, Detroit announced plans to allow residents to pay taxes in cryptocurrency by mid-2025. Partnering with PayPal for secure transactions, Detroit aims to become a leader in blockchain applications within public services.