FameEX Hot Topics | Italy Raises Capital Gains Tax on Bitcoin in Preparation for EU MiCA Regulations

Italy plans to raise its capital gains tax on Bitcoin from 26% to 42% to fund election promises and address the fiscal deficit. Prime Minister Giorgia Meloni’s government points to the growing adoption of Bitcoin as a key factor in this decision, according to Bloomberg. This move coincides with the European Union’s rollout of the Markets in Crypto-Assets Regulation (MiCA), which aims to create uniform cryptocurrency regulations across member states.

During a conference call, Deputy Finance Minister Maurizio Leo emphasized the importance of the tax increase, citing the rising usage of Bitcoin as a "spreading phenomenon." He highlighted that the tax hike is part of broader financial measures aimed at stabilizing Italy’s economy. Italy’s strategy is in line with the EU’s MiCA framework, which focuses on improving transparency and consumer protection in the cryptocurrency sector.

The planned tax hike is intended to address past difficulties countries have faced when attempting to tax digital assets. In many cases, high taxes led investors to move to offshore platforms to avoid paying. By aligning its cryptocurrency regulations with the EU’s upcoming MiCA rules, Italy aims to create a more compliant and structured environment for crypto investors.

Currently, Italy imposes a 26% capital gains tax on cryptocurrency profits exceeding €2,000 ($2,171), classifying these as "miscellaneous income." In addition, income from activities like mining and non-fungible token (NFT) sales can incur income tax rates ranging from 23% to 43%. The 26% capital gains tax also applies to profits from converting crypto assets into euros, trading NFTs for crypto, or using digital assets to make purchases.

Despite the impending tax increase, Bitcoin’s price continues to rise, signaling strong investor confidence. The resilience in Bitcoin’s value suggests the market remains optimistic, even as regulatory pressures increase. Italy’s tax adjustment represents a key step in aligning its cryptocurrency policies with broader European standards, paving the way for greater integration within the EU regulatory framework.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.