Italy just made holding crypto a more expensive hobby. The country’s 2025 Budget Law bumps the capital gains tax on digital assets from 26% to 33%, effective January 1, 2026. And for good measure, lawmakers also axed the annual €2,000 tax-free threshold, meaning every euro of realized gain will now be subject to taxation.

Here’s the thing: 33% might actually be the compromise. Early proposals floated a rate as high as 42%, which would have placed crypto gains in roughly the same neighborhood as Italy’s top marginal income tax bracket. The final number landed at 33% after negotiations, a figure that still represents a 27% increase over the previous rate.

What changed and when it kicks in

The tax overhaul operates on a…