Italy Cuts Crypto Tax to 28%, Sparking Optimism Among Investors
Italy is set to reduce its proposed cryptocurrency tax from 42% to 28%, aiming to foster a more favorable environment for crypto investors. This adjustment follows concerns from industry representatives that the original 42% tax rate would discourage investment and make Italy less competitive in the crypto sector.
Prime Minister Giorgia Meloni’s coalition government, particularly the League party, has submitted an amendment to cap the crypto capital gains tax at 28%, which is still higher than the current 26% but significantly lower than the initially planned 42%. The government is likely to support this amendment, signaling a potential shift towards more crypto-friendly policies in Italy.
In addition to this amendment, another coalition party, Forza Italia, has proposed eliminating the planned tax increase and removing the current €2,000 exemption for crypto gains. These proposals highlight the government’s openness to adjusting tax policies to attract and retain crypto investments.
The League’s proposal also includes establishing a permanent working group with digital asset firms and consumer organizations to enhance transparency and educate investors about crypto tax regulations. Finance Minister Giancarlo Giorgetti has suggested that Italy might consider differentiated taxation based on the holding period of digital assets, offering more favorable conditions for long-term investors.
The tax revision comes as Italy works to stabilize its public finances within EU guidelines. Similar global tax policies, such as India’s cryptocurrency tax increase, have led to investor concerns, which may influence Italy’s final decision. Additionally, Detroit plans to allow tax payments in crypto by mid-2025, further highlighting the growing global interest in blockchain integration within public services.
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