Italy has announced a proposal to increase the capital gains tax on Bitcoin from 26% to 42% as part of its new budget for 2025. This adjustment will impact cryptocurrency investors, banks, and other sectors, aiming to raise an additional €4 billion per year. The measure also removes the minimum threshold for taxing digital services, affecting tech companies that were previously exempt.
Italy’s Deputy Minister of Economy, Maurizio Leo, explained: “For Bitcoin capital gains, the withholding rate increases from 26% to 42%. In the digital services tax, we are removing the €750 million ceiling.”
This tax reform aims to increase revenue and could deter investment in cryptocurrencies, as it imposes one of the highest capital gains rates for crypto assets in Europe. It remains uncertain how this measure will be structured, as the budget still requires parliamentary approval, meaning a period of deliberation over the coming months.
Amid the rising tax pressure on cryptocurrencies in Italy, the Principality of Andorra stands out as an attractive alternative for those looking to optimize their tax burden. The country offers a competitive tax structure and clear regulations, with significantly lower rates on capital gains and tax benefits for residents. With a maximum income tax rate of 10% and a favorable environment for investment in technology and digital assets, Andorra attracts European Union citizens looking to reduce their tax obligations without losing access to the European market, especially in the realm of cryptocurrencies.
At Augé Legal & Fiscal, we can advise and guide you throughout the entire relocation process, ensuring it is done transparently and securely. Our highly qualified team of professionals specializes in this field and will accompany and protect you at every step.
