Crypto Taxes in Italy 2026 – Complete English-Language Guide

Italy introduced clear cryptocurrency tax rules starting in 2023. This English guide covers the 26% capital gains tax, how to report crypto to the Agenzia delle Entrate, and key exemptions.

Italy's Crypto Tax Reform (2023 onwards)

Italy formalized its cryptocurrency tax rules in the 2023 budget law. Cryptocurrency is classified as a financial asset (strumento finanziario virtuale). Capital gains are taxed at a flat rate of 26%, consistent with how other financial instruments are taxed in Italy.

Annual Exemption of €2,000

Italy provides an annual €2,000 exemption on crypto capital gains. If your total crypto gains for the year do not exceed €2,000, you owe no capital gains tax. Once your gains exceed this threshold, the full amount above €2,000 is taxed at 26%.

Note: this is only applicable if the crypto portfolio never exceeded €51,645.69 in value at any point during the year.

What Counts as a Taxable Event

• Selling crypto for euros or other fiat currency
• Trading one cryptocurrency for another – taxable in Italy
• Using crypto to purchase goods or services
• Receiving crypto for services rendered

Holding Period Rules

Italy does not have a holding period exemption like Germany. Gains are taxed at 26% regardless of how long you held the crypto. LIFO (Last In, First Out) is the default cost basis method, though FIFO may also be used if consistently applied.

Staking and Airdrop Income

Staking rewards and airdropped tokens received in Italy are taxed as redditi diversi (miscellaneous income) at the marginal income tax rate when received. They are not treated as capital gains at receipt – only when subsequently sold.

Reporting to Agenzia delle Entrate

Report crypto capital gains in the Modello Redditi PF (or 730 form if eligible), specifically in the section for capital gains (Quadro RT). You must also declare crypto holdings in the Quadro RW of the income tax return, regardless of whether you made a gain – this is a wealth disclosure requirement for foreign financial assets.

Crypto Substitutive Tax (Imposta Sostitutiva)

Italy also offered a special substitutive tax at 14% on crypto portfolio value as of January 1, 2023, allowing taxpayers to step up their cost basis to market value at that date. Similar elections have been proposed for subsequent years. This can significantly reduce future capital gains tax for long-term holders who participated.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.