The budget law of Italy for 2025 has been definitively approved, including an article dedicated to the taxation of cryptocurrency capital gains. Article 43 of the approved bill sets the substitute tax rate on capital gains and other miscellaneous income at 26%. This rate applies to all types of assets included in the legislative decree. The increase in taxation on crypto capital gains to 42% that was initially included in the budget law has been averted. However, starting from January 1, 2026, the substitute tax rate will be 33%. The exemption threshold of €2,000 for crypto capital gains has been abolished, meaning that even gains as low as €1 will be subject to a 26% tax. Article 26 allows the option to pay a substitute tax of 18% on cryptocurrencies held as of January 1, 2025, without considering the purchase cost. The law will come into effect on January 1, 2025. The removal of the exemption threshold has been met with protest, while the increase in taxation for 2026 has been criticized for raising tax pressure in the country.



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