How is crypto taxed in Italy?

Italy taxes crypto capital gains with a flat substitute tax that rose to 33% in 2026. There is no longer a tax-free allowance, and the rate applies however long the crypto was held. Holders also report their crypto every year and pay a small levy on its value.

What is the crypto tax rate in Italy?

The 2023 budget law (Law 197/2022) created a specific category for gains on crypto assets and taxed them at 26%. The 2025 budget law (Law 207/2024) then made two changes:

• it raised the rate to 33% for gains realized from January 1, 2026
• it removed the €2,000 annual exemption from January 1, 2025

The rate does not depend on the holding period. A gain of €3,000 in 2026, for example, produces €990 of tax.

There is one exception. Euro-denominated e-money tokens that comply with the EU's MiCA rules, meaning euro stablecoins backed by euro reserves, stay at 26%. Converting euros into such tokens is not a taxable event. Dollar-pegged stablecoins are taxed at 33%.

Which crypto transactions are taxed in Italy?

Selling crypto for euros or dollars is taxable. Exchanges between crypto assets with equivalent characteristics and functions are not, which means many coin-to-coin swaps are outside the tax. Where a token falls is not always clear, and Italian commentators flag grey areas.

Income from staking, lending, yield farming, mining and airdrops is treated as other miscellaneous income and can be taxed even without a sale. Commentators say some of this treatment is still uncertain.

Before the higher rate took effect, holders could step up the cost of their crypto to its value on January 1, 2025 by paying a one-off 18% tax. The deadline for that option was December 1, 2025.

How are crypto losses and holdings reported in Italy?

Net crypto losses can be set against crypto gains in the next four tax years. They cannot reduce gains on shares or other financial instruments. The guide to crypto losses and taxes explains the general idea.

Two parts of the tax return matter:

1. Quadro RW. Every holder reports the euro value of their crypto at December 31, including coins on foreign exchanges and in self-custody wallets, even if there were no transactions.
2. Quadro RT (or quadro T on the 730 form). Gains and losses from disposals go here.

A levy of 0.2% applies each year to the value of crypto held at December 31. An Italian intermediary may collect it, and otherwise the taxpayer pays it through the return.

Spain, Italy's neighbor in southern Europe, takes a different route, covered in how crypto is taxed in Spain. The wider picture is in crypto tax around the world.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.