Italy Considers Lowering Proposed Crypto Tax Hike to 28 Percentage

Italy’s government is reportedly revising its proposed tax hike on cryptocurrency trades, reducing the planned increase from 42% to 28%. This change comes as Prime Minister Giorgia Meloni’s coalition appears to be leaning toward a more moderate approach, aiming to support the country’s burgeoning digital asset sector.

Currently, crypto transactions in Italy are taxed at a rate of 26%, but the government had initially proposed raising this rate to 42% as part of its budget plan to boost public finances. However, the proposal faced pushback from crypto industry leaders, who warned that such a steep tax could undermine Italy’s competitiveness—particularly with the European Union set to implement comprehensive crypto regulations under the Markets in Crypto-Assets (MiCA) framework later this year.

To address these concerns, the League, a junior partner in Meloni’s coalition, has suggested a tax rate of 28% as a compromise, striking a balance between generating public revenue and supporting the growth of the crypto sector. Another coalition partner, Forza Italia, proposed an even more lenient approach, recommending that no tax hike be applied to gains under €2,000 to encourage local participation in the cryptocurrency market.

These proposed changes are seen as an effort to create a more attractive environment for crypto investors in Italy, positioning the country to remain competitive as other nations adjust their own crypto tax policies.