Italy Crypto Tax Guide 2025
Everything Italian investors need to know about the 2025-2026 tax changes: 26% → 33% rate increase, €2,000 exemption removal, 18% substitute tax option, and how to report with Modello Redditi.
Risposta Rapida (Quick Answer)
Italy's crypto tax rules are changing significantly. 2025: €2,000 exemption REMOVED (all gains taxable). 2026: Rate increases 26% → 33%. NEW: 18% substitute tax option on portfolio value. LIFO accounting required. Report on Modello Redditi. Deadline: October 15, 2026.
⚠️ IMPORTANT: 2025-2026 Budget Changes
€2,000 exemption REMOVED — ALL gains now taxable (no minimum threshold)
Capital gains tax INCREASES from 26% → 33%
18% substitute tax on portfolio value (alternative to gains-based tax)
A Colpo d'Occhio: Tax Year 2025-2026
26%
On ALL gains (no exemption)
33%
+7% increase from 2026
18%
On portfolio value
How Italy Treats Cryptocurrency
Italy's Agenzia delle Entrate classifies cryptocurrency as "cripto-attività" (crypto-assets) — a distinct category of financial assets subject to capital gains taxation. The 2023 and 2025 Budget Laws have introduced significant changes to the tax regime.
Fonte (Source): Agenzia Entrate Circolare N. 30/E
Classification
Previously compared to foreign currency, crypto is now treated similarly to financial assets like stocks and bonds. This puts crypto under the imposta sostitutiva (substitute tax) regime rather than regular progressive income tax (IRPEF).
2025-2026 Tax Changes (Budget Law)
Old Rules
- • 26% tax on gains above €2,000
- • First €2,000 of annual gains tax-free
€2,000 Exemption REMOVED
ALL crypto gains are now taxable from the first euro — no minimum threshold. The exemption that applied to previous years is permanently eliminated.
Rate Increase to 33%
Capital gains tax rate increases from 26% to 33% — a 7 percentage point (27% relative) increase. This makes Italy one of the highest crypto tax jurisdictions in the EU.
Impact on Taxpayers
Tax Rates Summary
Capital Gains Tax
Ordinary Income (IRPEF)
For mining, staking, NFT sales
18% Substitute Tax Option (NEW)
Alternative to Gains-Based Tax
Instead of paying 26%/33% on capital gains, you can elect to pay a flat 18% tax on the total value of your crypto portfolio as of January 1.
How It Works
- Declare the total EUR value of your crypto holdings as of January 1
- Pay 18% tax on this value by June 30
- This becomes your new cost basis going forward
- Future gains calculated from this new basis
- Election must be renewed annually
When It Makes Sense: If you have large unrealized gains and want to "reset" your cost basis, or if tracking every trade is too complex. The 18% rate is lower than the 33% rate starting in 2026.
Example: You hold €100,000 worth of crypto on Jan 1, 2025. You pay €18,000 (18%) by June 30. Your new cost basis is now €100,000. Any future sales above this are taxed at the prevailing rate.
LIFO Accounting Method
Last In, First Out (LIFO)
Italy requires LIFO for crypto — the most recently purchased coins are considered sold first. This is the opposite of FIFO used in most countries.
LIFO (Italy)
→ Uses March BTC (€40k basis)
Gain: €10,000
FIFO (Most Countries)
→ Uses January BTC (€30k basis)
Gain: €20,000
Important: LIFO can result in lower gains in rising markets (using higher cost basis). Keep detailed records of all purchase dates and amounts to properly apply LIFO!
Taxable Events
| Activity | Tax Treatment | Details |
|---|---|---|
| Buying crypto with EUR | Not Taxable | Establishes cost basis |
| Selling crypto for EUR | Capital Gains | 26% (2025) or 33% (2026+) |
| Trading crypto-to-crypto | Capital Gains | Disposal event — taxable |
| Spending crypto | Capital Gains | Treated as EUR conversion |
| Mining rewards | Income (IRPEF) | 23-43% progressive rates |
| Staking rewards | Likely Income | No official guidance yet |
| Lending/DeFi yield | Likely 26% | At receipt + disposal |
| HODLing | Not Taxable | Not taxed until disposed |
| Wallet transfers (own) | Not Taxable | Between your own wallets |
Tax Forms & Reporting
Modello Redditi PF (Main Tax Return)
Italy's comprehensive individual tax return form
Form RT (Capital Gains)
Attachment to Modello Redditi for reporting crypto capital gains
- •Report all crypto disposals (sales, trades, spending)
- •Calculate gains using LIFO method
- •List total gains and apply 26%/33% tax
Form RW (Foreign Assets) — MANDATORY
Declaration of foreign-held crypto assets
⚠️ IVAFE Wealth Tax: Foreign-held crypto is subject to 0.2% annual wealth tax on year-end value. Must be declared on Form RW even if no gains.
Penalties for non-declaration: 120-240% of unpaid tax + interest + possible criminal charges
Modello 730 (Employment Income)
Simplified form for employees
Deadline: September 30, 2026. Can be used if you only have employment income + simple crypto gains. Cannot be used for Form RW (foreign assets).
Real-World Examples
You make €3,500 profit selling crypto in different years
⚠️ Same gain, but tax nearly triples from 2024 to 2026 (€390 → €1,155)
You hold €50,000 worth of crypto with €35,000 unrealized gains
💡 Substitute tax saves €2,550 and resets cost basis to €50,000 for future calculations
Domande Frequenti (FAQ)
What exactly is changing in 2025 and 2026?
January 1, 2025: The €2,000 annual exemption is permanently removed — ALL gains are now taxable from the first euro. January 1, 2026: The capital gains tax rate increases from 26% to 33%. These changes are part of Italy's 2025 Budget Law and represent a significant tightening of crypto taxation.
Should I use the 18% substitute tax option?
The 18% substitute tax makes sense if: (1) You have large unrealized gains and want to "reset" your cost basis before the 33% rate kicks in, (2) Tracking every trade is complex and you prefer simplicity, or (3) You plan to hold long-term and want certainty. The 18% rate is significantly lower than the 33% rate starting in 2026. Consult a commercialista to calculate which option is better for your situation.
What is LIFO and why does it matter?
LIFO (Last In, First Out) means the most recently purchased coins are considered sold first. This is opposite to FIFO used in most countries. LIFO can result in lower taxable gains in rising markets because you're using the higher (more recent) purchase price as cost basis. You must keep detailed records of all purchases with dates and amounts to properly apply LIFO.
Can I offset crypto losses in Italy?
Yes. Crypto losses can offset crypto gains in the same year. Unused losses can be carried forward for up to 5 years to offset future gains. However, losses cannot offset regular employment income — only capital gains. Agenzia Entrate has not clarified whether losses from hacks or lost keys are deductible, so consult a tax professional.
What is Form RW and the IVAFE wealth tax?
Form RW is mandatory for declaring foreign-held crypto assets (exchanges, wallets outside Italy). Foreign crypto is subject to IVAFE wealth tax at 0.2% of year-end value, payable annually regardless of whether you sold or made gains. Failure to file Form RW carries penalties of 120-240% of unpaid tax plus potential criminal charges. This is separate from capital gains tax.
Should I use a commercialista (tax professional)?
Highly recommended, especially given the 2025-2026 changes and Italy's complex tax system. A commercialista familiar with crypto can: (1) Help you decide between regular tax vs 18% substitute tax, (2) Properly apply LIFO accounting, (3) Ensure Form RW compliance to avoid severe penalties, (4) Navigate the Agenzia Entrate portal. The cost is typically tax-deductible and worth it to avoid costly mistakes.
Hai bisogno di aiuto con le tasse crypto?
Navigate Italy's changing crypto tax landscape with expert guidance. Understand 2025-2026 changes and ensure full Agenzia Entrate compliance.