Italy's Senate has definitively approved the 2025 budget law, introducing key changes to cryptocurrency taxation starting January 1st, 2025. The new legislation sets the tax rate on crypto capital gains at 26 percent, clarifying previous ambiguity in the tax code.
The approved bill resolves an oversight discovered in October regarding crypto asset taxation. Previously, crypto assets fell under a 12.5% rate according to a 1997 legislative decree. The new law explicitly applies the 26% rate to all assets, including cryptocurrencies.
The legislation also removes the existing €2,000 exemption threshold for crypto gains. Under current rules, Italian crypto holders don't need to declare gains below this amount. Starting in 2025, all crypto capital gains must be declared and taxed, regardless of the amount.
A notable provision allows cryptocurrency holders to opt for an 18% substitute tax on assets held as of January 1st, 2025. This option benefits those who cannot document their original purchase costs or prefer not to pay the standard 26% rate on gains. The payment can be made in up to three annual installments with 3% interest.
Looking ahead, the law introduces a further increase to 33% for crypto capital gains generated from 2026 onwards. While this future rate could potentially be modified before implementation, the 26% rate for 2025 is now fixed.
The crypto community's response has been mixed. While some welcome the clarity provided by the new framework, others express concern about the removal of the exemption threshold and the planned 33% rate increase for 2026, particularly given Italy's already high tax burden.