Taxes on Crypto: A Tale of Two Countries – Canton Ticino vs Italy
In the world of cryptocurrency, the landscape of taxation can make or break the growth and innovation of this booming sector. While in Switzerland’s Canton of Ticino, preparations are underway for a new tax reform that favors the crypto industry, in Italy, taxes continue to hinder its rise.
Canton Ticino, nestled in the Swiss Confederation, is gearing up for a tax reform set to take effect on January 1, 2025. This reform includes a significant reduction in the corporate profit tax rate, dropping from 8% to 5.5%. Additionally, an increase in the deduction of the tax on profits from the capital tax will provide further relief to businesses and individuals. The aim is to make Canton Ticino more competitive among Swiss cantons, attracting businesses and fostering innovation.
When it comes to taxes on crypto in Canton Ticino, individuals enjoy favorable conditions as capital gains from cryptocurrencies remain exempt from taxation, only subject to wealth tax. This investor-friendly regime has positioned Ticino as a key hub for Bitcoin enthusiasts, encouraging growth and investment in the crypto industry.
On the flip side, Italy’s 2025 budget maneuver paints a starkly different picture. The tax rate on capital gains from crypto activities is set to increase, with the exemption threshold eliminated. In 2026, the tax rate will soar to 33%, posing a significant challenge to the crypto sector in Italy. This move, seen as a setback by many, may deter new investments and stifle the technological advancement of the country.
While Canton Ticino embraces a forward-thinking approach to taxes on crypto, Italy’s stance appears to lag behind. The contrasting environments highlight the importance of tax policies in shaping the future of the cryptocurrency industry. As investors and businesses navigate these tax landscapes, the choice between innovation-friendly jurisdictions like Canton Ticino or tax burdened regions like Italy becomes increasingly clear.
As the global crypto community grapples with diverging tax regimes, the need for clarity and consistency in taxation policies becomes paramount. With the right incentives and supportive frameworks, countries can pave the way for a thriving crypto ecosystem that benefits investors, businesses, and the economy at large.