Italy will raise capital gains tax on Bitcoin (BTC) from 26% to 42%. The development could lead to crypto investors leaving the country or looking for other avenues.
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Italy revealed its draft budgetary plan (DBP) on Wednesday, which included new revenue-raising plans. The move to increase Bitcoin (BTC) taxes comes with the nation’s decision to raise 0.2% of gross domestic product (GDP) or roughly 4 billion euros ($4.35 billion) in 2025. The country plans to raise money from new tax rules for banks, insurance products, and gaming business licenses.
With a 42% capital gains tax on BTC, Italy is now among the highest-taxed nations in the world.
Why is Italy Raising Taxes On Bitcoin?
Inflation in the country fell below 1% in September, putting more pressure on the European Central Bank to cut interest rates. On the other hand, the draft budgetary plan (DBP) highlights that the nation anticipates revenues from banks, insurance products, and gaming to fall by 0.073% of GDP in 2026 and 0.096% in 2027.
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The country likely expects Bitcoin (BTC) investments to increase. Inflation rates are cooling, and an interest rate cut may be around the horizon. Interest rate cuts usually lead to investors taking on more risks as borrowing becomes easier.
Economy Minister Giancarlo Giorgetti will hold a press conference on Wednesday.
Will BTC Take A Hit From Increased Taxes?
The high tax figure may lead to Italian investors shying away from Bitcoin (BTC). The development may hamper the asset’s growth. October is historically bullish for the cryptocurrency market, but this news may lead to investors becoming cautious.
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