The approval of Italy’s budget law for 2025 on Saturday, December 28, has significant implications for cryptocurrency holders in the country. The law includes specific provisions for the taxation of crypto capital gains, bringing clarity to a previously unclear situation.
Article 43 of the approved bill sets the substitute tax rate on capital gains at 26 percent, ensuring that all types of assets, including cryptocurrencies, are now subject to the same tax rate. This resolves a discrepancy that arose in October regarding the taxation of crypto-assets.
The increase in taxation on crypto capital gains to 42% was initially proposed but ultimately averted in the final version of the budget law. However, a new provision states that from January 1, 2026, the tax rate will be increased to 33% for capital gains generated from the sale of assets included in specific legislative decrees.
Furthermore, the exemption threshold of €2,000 for crypto capital gains has been eliminated, aligning the tax regime for cryptocurrencies with that of other financial assets. This means that all capital gains and losses from cryptocurrency transactions will now be subject to a 26% tax, regardless of the amount.
To provide some relief, the budget law introduces a revaluation option where taxpayers can choose to pay a substitute tax of 18% on cryptocurrencies held as of January 1, 2025. This option allows individuals to avoid paying the 26% tax on any capital gains generated from sales by paying the revaluation tax by November 30, 2025.
The reactions to the budget law have been mixed, with some relieved that the proposed 42% tax rate was avoided, while others are concerned about the removal of the exemption threshold and the increase in taxation to 33% in 2026. The protests highlight the challenges of navigating tax regulations for cryptocurrency holders in Italy.
Overall, the definitive approval of the budget law signals changes in the taxation of crypto capital gains in Italy, with implications for individuals holding cryptocurrencies. It is important for taxpayers to stay informed about these developments and seek professional advice to navigate the evolving regulatory landscape.