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In Italy, crypto capital gains exceeding €2,000 per year are subject to a 26% substitute tax (Imposta Sostitutiva). Since 2023, Italian tax law also requires mandatory declaration of crypto holdings in Quadro RW of your annual tax return. This guide explains everything you need to know about Italian crypto taxes in 2026.
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</svg></div><div class="label"><span class="text_bold text-color-blue">Good to know</span></div></div><div class="label">This guide incorporates the latest crypto regulations introduced into Italy's national legal system through the 2023 and 2025 Budget Law.</div></div>
Do I Have to Pay Taxes on Cryptocurrencies in Italy?
Yes, in Italy, cryptocurrencies are subject to taxation. Capital gains are classified as "miscellaneous income" and currently taxed at a rate of 26%. However, starting January 1, 2026, the rate will increase to 33% under the provisions of the 2025 budget law.
Alternatively, you can opt for a 18% tax on the value of your crypto assets as of January 1.
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</svg></div><div class="label"><span class="text_bold text-color-blue">Good to know</span></div></div><div class="label">The 2,000€ tax exemption threshold, meaning that only gains from 2,000€ or above are being taxed, has been abolished under the latest budget law. It will no longer apply starting January 1, 2025, but remains effective for prior tax years.</div></div>
What Are the Tax Rates on Cryptocurrencies?
Capital Gains Tax
This tax is 26% on capital gains. However, starting January 1, 2026, the rate will increase to 33% under the provisions of the 2025 budget law.
Alternative Portfolio Tax (Optional to The Capital Gains Tax)
The alternative portfolio tax allows you to pay a 18% tax on the value of crypto-assets held as of January 1, instead of the capital gains tax.
According to Article 1, Paragraph 133 of the Budget Law 2023, this value can be used as the cost basis instead of the purchase value.
This value cannot be used to carry forward capital losses.
This tax can be paid by 30 June in one lump sum or in 3 equal annual installments starting on 30 June. After the first installment, a 3% annual interest rate applies to the remaining installments.
Wealth Tax
For crypto assets held with an Italian intermediary, a 0.2% stamp duty is automatically deducted. If the assets are held with a foreign intermediary or in self-custody (e.g., Ledger), a 0.2% wealth tax applies annually instead. It is based on the portfolio value at the end of the year (31.12).
This tax applies to all Italian tax residents, with a maximum cap of 14,000€ for taxpayers different from natural persons.
Special Flat Tax for New Residents
Italy offers tax incentives for new residents, including crypto investors, to attract investment and human capital. These incentives include a special flat tax on foreign income, an inheritance, and gift tax exemption, and fast-tracked visas.
For crypto investors, most income from crypto investments can qualify for the Italian flat-tax regime as foreign income. Crypto capital gains may also be eligible, and certain tax reporting obligations, such as the RW Form, will be reduced.
The flat tax allows you to pay an annual flat tax of 100,000€ regardless of your foreign income level, with an additional 25,000€ for each family member.
To take advantage of these benefits, contact a tax professional for detailed guidance and optimal planning for your move to Italy.
How Do I Calculate Crypto Gains for the Tax Return?
Taxpayers must calculate their cryptocurrency gains and losses before submitting them to the Italian Revenue Agency. First, determine the cost basis, which is the amount paid to acquire the cryptocurrency and add any applicable fees. If traded, use its fair market value in EUR on the acquisition day. To calculate profit or loss, subtract the cost basis from the sale price. For swaps or other non-sale disposals, use the fair market value on the disposal day.
If you opt for the Alternative Portfolio Tax, the calculation is based on the value of crypto-assets held as of January 1.
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</svg></div><div class="label"><span class="text_bold text-color-blue">Tip</span></div></div><div class="label">With <a id="" href="https://www.blockpit.io/crypto-tax-calculator">Blockpit's cryptocurrency tax software</a>, such calculations are fully automated for you. The days of tediously keeping track of your crypto transactions in an Excel file are over. Good riddance.</div></div>
What About Crypto Losses?
Trading Losses
Under Italian tax regulations, investors can deduct cryptocurrency trading losses from their profits and carry these deductions forward for up to five years. Using a loss-harvesting strategy can help reduce annual tax liabilities.
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<path d="M2.33149 10.7271C1.79481 12.0889 1.5 13.5725 1.5 15.125C1.5 16.3451 1.68208 17.5226 2.02056 18.632C2.27991 19.482 3.10418 20 3.99289 20H4.90067C5.3462 20 5.62137 19.5017 5.42423 19.1022C4.83248 17.9029 4.5 16.5528 4.5 15.125C4.5 13.4168 4.97588 11.8198 5.8023 10.4593C6.0473 10.0559 5.77404 9.5 5.30212 9.5H4.24936C3.41733 9.5 2.63655 9.95303 2.33149 10.7271Z" fill="#4CAF50"></path>
</svg></div><div class="label"><span class="text_bold text-color-blue">Tip</span></div></div><div class="label">With <a id="" href="https://www.blockpit.io/crypto-tax-calculator">Blockpit's tax optimization feature</a>, discover new saving opportunities in your portfolio and improve your tax loss harvesting strategy. Try it now!!</div></div>
Losses from Scams or Hacks
The Italian tax authority, Agenzia Entrate, has not provided clear guidance on whether losses from scams, hacks, or misplaced private keys are deductible as capital losses. Reporting such incidents to the authorities is essential. Consult a cryptocurrency accountant to determine if these losses can be claimed as capital losses.
The Accounting Methods for Crypto Tax in Italy
In Italy, the Last In, First Out (LIFO) method is used for cryptocurrency transactions. This means that the most recently acquired coins are considered the first to be sold.
Let’s look at an example:
- Chris buys 1 BTC for 3,000€ on January 1st.
- He buys another BTC for 2,000€ on February 1st.
- Chris sells 1 BTC for 4,000€. Using LIFO, the cost basis is 2,000€ from the BTC bought on February 1st, realizing a gain of 2,000€.
Another method is FIFO (First In, First Out), which is not used in Italy. The image below illustrates the difference.
How to File a Tax Return for Cryptocurrencies
First, here is the required data for your tax report:
- Transaction dates
- Cryptocurrencies involved
- Type of transaction
- Amounts involved
- Value of transactions in EUR
- Gain or loss from transactions
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<path d="M2.33149 10.7271C1.79481 12.0889 1.5 13.5725 1.5 15.125C1.5 16.3451 1.68208 17.5226 2.02056 18.632C2.27991 19.482 3.10418 20 3.99289 20H4.90067C5.3462 20 5.62137 19.5017 5.42423 19.1022C4.83248 17.9029 4.5 16.5528 4.5 15.125C4.5 13.4168 4.97588 11.8198 5.8023 10.4593C6.0473 10.0559 5.77404 9.5 5.30212 9.5H4.24936C3.41733 9.5 2.63655 9.95303 2.33149 10.7271Z" fill="#4CAF50"></path>
</svg></div><div class="label"><span class="text_bold text-color-blue">Tip</span></div></div><div class="label">With <a id="" href="https://www.blockpit.io/crypto-tax-calculator">Blockpit's cryptocurrency tax software</a>, data collection is fully automated. Say goodbye to the tedious task of tracking your crypto transactions in an Excel file. Good riddance.</div></div>
Italian taxpayers need to use one of two forms, with different deadlines, depending on the nature of their income:
Modello 730
The Modello 730 form is primarily for those with employment income, credits, or deductions to declare or claim. This form is suitable for individuals who do not need to report complex income sources like significant capital gains or foreign assets.
Modello Redditi PF
The Modello Redditi PF is used for more complex tax situations, including reporting capital gains from cryptocurrencies. This form is applicable for those who need to declare employment income, tax withheld, capital gains, or foreign income and assets.
Form RT: Included within the Modello Redditi PF to report capital gains from crypto transactions.
Form RW: Included within the Modello Redditi PF to report foreign income and assets.
You can file both forms online, through tax assistance centers (CAF), or with authorized professionals.
When Is the Tax Return Due?
The tax year in Italy runs from January 1 to December 31. The deadlines for filing your tax return depend on the forms you need.
For the Modello 730, the deadline is September 30 of the following year. For example, if you are filing a tax return for the year 2024, the deadline is September 30, 2025.
For the Modello Redditi, which consists of Form RT (for capital gains) and Form RW (for foreign income/assets), the deadline is October 31 of the following year.
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</svg></div><div class="label"><span class="text_bold text-color-blue">Good to know</span></div></div><div class="label">Non-resident individuals who are abroad at the time of filing their tax return and are unable to submit it electronically can send the “Modello Redetti” form by registered mail or another equivalent method by November 30 of the year following the tax year.</div></div>
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<path d="M2.33149 10.7271C1.79481 12.0889 1.5 13.5725 1.5 15.125C1.5 16.3451 1.68208 17.5226 2.02056 18.632C2.27991 19.482 3.10418 20 3.99289 20H4.90067C5.3462 20 5.62137 19.5017 5.42423 19.1022C4.83248 17.9029 4.5 16.5528 4.5 15.125C4.5 13.4168 4.97588 11.8198 5.8023 10.4593C6.0473 10.0559 5.77404 9.5 5.30212 9.5H4.24936C3.41733 9.5 2.63655 9.95303 2.33149 10.7271Z" fill="#4CAF50"></path>
</svg></div><div class="label"><span class="text_bold text-color-blue">Tip</span></div></div><div class="label">Tax advisors also appreciate <a id="" href="https://www.blockpit.io/crypto-tax-calculator">Blockpit's tax reports</a>! They save a lot of work—and save you money!</div></div>
How to Optimize Taxes on Crypto?
Here are several (legal) strategies to reduce your crypto tax obligations in Italy:
- Hold Your Crypto: If you don’t sell, you aren’t subject to gains.
- Utilize Losses: Losses from crypto investments can be deducted from profits and carried forward for up to five years.
- Make a Tax-Deductible Donation: Individual and corporate donors can deduct contributions from their income tax up to 10% of their declared income, with a maximum of 70,000€ per tax year.
- Leverage the Alternative Portfolio Tax: Opt to pay a 18% tax on the value of the assets held as of January 1 of the next year instead of the purchase cost. This encourages taxpayers to report crypto on their taxes.
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<path d="M2.33149 10.7271C1.79481 12.0889 1.5 13.5725 1.5 15.125C1.5 16.3451 1.68208 17.5226 2.02056 18.632C2.27991 19.482 3.10418 20 3.99289 20H4.90067C5.3462 20 5.62137 19.5017 5.42423 19.1022C4.83248 17.9029 4.5 16.5528 4.5 15.125C4.5 13.4168 4.97588 11.8198 5.8023 10.4593C6.0473 10.0559 5.77404 9.5 5.30212 9.5H4.24936C3.41733 9.5 2.63655 9.95303 2.33149 10.7271Z" fill="#4CAF50"></path>
</svg></div><div class="label"><span class="text_bold text-color-blue">Tip</span></div></div><div class="label">Access <a id="" href="https://www.blockpit.io/crypto-tax-optimization">Blockpit’s Crypto Tax Optimizer</a> for seamless Tax Loss Harvesting, with visual insights into unrealized gains, tax-free assets, and a Sell Simulation feature - available exclusively at Blockpit.</div></div>
Find all the details on this topic in our guide: Crypto Tax Loss Harvesting
Your Crypto Tax Report with Blockpit
Quickly and easily create your personal crypto tax report with the Blockpit crypto tax calculator, available as a convenient PDF.
Blockpit adheres to Italian tax regulations, ensuring all your transactions are legally categorized and assigned correctly.
In addition to pre-filled tax forms, Blockpit also generates a detailed transaction report listing all tax-relevant transactions, which can be presented to the tax office upon request.
When Are Crypto Taxes Not Applicable?
The following scenarios do not trigger a taxable event:
- Yearly crypto gains under 2,000€ (effective only until December 31, 2024)
- Transferring crypto between wallets
- Buying crypto with euros
- Converting one crypto to another, including stablecoins
Conversions into stablecoins like USDT are debated. European regulation defines stablecoins as E-Money Tokens (EMTs), which are taxable. However, no stablecoin currently meets EMT criteria, so USDT conversions should be tax-neutral.
Taxation of Basic Transactions
Selling Crypto for Fiat
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>Capital Gains Tax</div></div>
Selling cryptocurrencies for fiat currencies, such as the Euro or Dollar, is taxable.
Using Crypto to Pay for Goods or Services
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>Capital Gains Tax</div></div>
Using cryptocurrencies for payments, is taxable.
Receiving Crypto as Payment for Goods or Services
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>Capital Gains Tax</div></div>
Receiving cryptocurrencies as payment, is taxable.
Bitcoin Mining
Currently, there is no specific regulation regarding Bitcoin mining in Italy. Receiving BTC through mining is likely not a taxable event for individuals. However, when individuals sell the mined cryptocurrency, it should be reported as general income.
If mining is considered a business activity, it changes the tax implications. In such cases, the sale of mined cryptocurrency might be subject to the Italian individual business income tax regime, with progressive rates ranging from 23% to 43%. Additionally, BTC received through mining might be subject to a 24% corporate tax on their market value upon receipt.
Airdrops
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>26% AT DISPOSAL</div></div>
The tax treatment of airdrops in Italy is not fully clarified due to a lack of specific regulation. It is likely that receiving airdrops is not a taxable event. However, selling airdrops for fiat may trigger a 26% capital gains tax.
Hard Forks
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>26% AT DISPOSAL</div></div>
The tax treatment of hard forks in Italy remains uncertain due to a lack of specific regulations. It is likely that receiving hard forks is not a taxable event. However, selling hard forks for fiat may be subject to a 26% capital gains tax.
Receiving Crypto as Gift
<div fs-richtext-component="tax-status-capital-gains-tax" class="tax-status-pills"><div>26% AT DISPOSAL</div></div>
The tax treatment of receiving crypto as a gift in Italy is not fully clarified due to a lack of specific regulations. It is likely that receiving crypto as a gift is not a taxable event. However, selling the gifted crypto for fiat may be subject to a 26% capital gains tax.
Bounties
<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON INFLOW</div></div> <div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON SALE</div></div>
The tax treatment of receiving bounties in Italy is unclear due to a lack of specific regulations. It is likely that bounties are taxed at 26% of their fair market value upon receipt, with a 26% tax on any gains upon disposal.
Taxation of DeFi Transactions
Staking
<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON INFLOW</div></div> <div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON SALE</div></div>
The tax treatment of staking rewards in Italy is unclear due to a lack of specific regulations. The 2023 Budget Law suggests that income from holding crypto-assets, which might include staking rewards, is taxed at 26% without deductions. Therefore, it is likely that staking rewards are taxed at 26% upon receipt and any gains upon disposal are also taxed at 26%.
Lending
<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON INFLOW</div></div> <div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>26% ON SALE</div></div>
The tax treatment of lending rewards in Italy is unclear due to a lack of specific regulations. The 2023 Budget Law suggests that income from holding crypto-assets, including lending rewards, is taxed at 26% without deductions. Therefore, it is likely that lending rewards are taxed at 26% upon receipt, and any gains upon disposal are also taxed at 26%.
Taxation of NFT Transactions
The tax treatment of NFTs in Italy remains uncertain, with no specific rules defining NFTs as representing any underlying assets.
It's likely that no taxes are due upon the creation of NFTs. However, the costs involved in creating NFTs should be included in the taxable basis if the creator qualifies as a professional.
Converting NFTs into another cryptocurrency (e.g., trading NFTs for ETH) or vice versa (crypto to NFT) is likely considered a taxable event, resulting in capital gains or losses.
Frequently Asked Questions
What is the crypto tax rate in Italy?
Italy applies a 26% substitute tax (Imposta Sostitutiva) on crypto capital gains exceeding €2,000 per tax year. Gains below this threshold are tax-free. The tax is declared and paid through your annual income tax return (Modello 730 or Redditi PF).
Do I need to declare my crypto holdings in Italy even with no gains?
Yes. Even if you made no taxable gains, you must declare your crypto holdings in Quadro RW of your annual tax return if their value exceeds certain thresholds. Failure to declare can result in penalties from the Agenzia delle Entrate.
Are crypto-to-crypto trades taxable in Italy?
Under Italian tax law, crypto-to-crypto exchanges are generally considered taxable events if the gain exceeds €2,000 for the year. Each swap must be tracked and the gain or loss calculated based on the cost of the original asset.
When is the Italian crypto tax return due?
The guide distinguishes between the filing deadlines for Modello 730 and Modello Redditi PF. The applicable deadline depends on the return used and should be checked for the relevant tax year.
How are crypto losses handled in Italy?
Eligible crypto capital losses can generally offset qualifying crypto capital gains under the applicable Italian rules. Accurate transaction records and the correct accounting method are required to calculate and report them.
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