Italy to Lower Proposed Crypto Tax Hike to 28%

Italy is expected to decrease its proposed 42% capital gains tax on cryptocurrency transactions to 28%, marking a significant departure from its previous policy.

This change reflects the government’s efforts to balance its financial objectives with concerns about the consequences of high taxes on the country’s digital asset market.

The proposed reduction has gained support from Prime Minister Giorgia Meloni’s coalition, with a League party-led amendment aimed at attracting more crypto investors to Italy.

Originally, as part of Italy’s October budget draft, the plan was to sharply increase the tax rate from 26% to 42%.

This move was intended to boost tax revenue as Italy works to stabilize its public finances following the reinstatement of European Union fiscal policies. However, both industry advocates and crypto executives cautioned that such a high tax rate could discourage investment and harm Italy’s ability to compete within the EU.