The essential guide to crypto taxes in Italy for 2025

Cryptocurrency is subject to taxation in Italy. However, the Italian tax authority has recently changed its cryptocurrency tax laws, making the period from 2023 to 2025 a transformative one for crypto and NFT taxation. It is therefore crucial to understand how Italy taxes crypto-assets (including Bitcoin, altcoins, and NFTs) and the impact of the new rules on capital gains, staking income, DeFi yields, and more.

According to a Triple A report, 2.5% of the Italian population (over 1,469,000 people) own cryptocurrencies. The user penetration rate is expected to reach 27.98% this year.

Crypto taxes in Italy: rates

As this trend is positive, the Italian tax authority has decided to amend the crypto legislative framework.

In Italy, capital gains are classified as ‘miscellaneous income’ and taxed at a rate of 26% if your gains equal or exceed €2,000. From January 2026, this rate will increase to 33%.

Therefore, any profits you make from converting crypto assets into euros or purchasing goods or services with crypto assets will be subject to taxation.

Crypto assets and taxable events in Italy

Italian law broadly defines crypto assets as any digital representation of value or rights using distributed ledger technology. This definition includes both NFTs and cryptocurrencies. In other words, Italy’s crypto tax rules apply to both cryptocurrencies (such as Bitcoin and Ethereum) and NFTs.

The list of taxable transactions is as follows:

• Selling cryptocurrency for fiat currency (e.g. converting Bitcoin to euros).
• Using crypto to buy goods or services
• Exchanging cryptocurrency for a different type of cryptocurrency that is not considered ‘like-kind’ under the law.
• Selling or exchanging NFTs for value

However, if you simply hold or transfer cryptocurrency between your wallets, you won’t have to pay tax on it. Certain crypto-to-crypto exchanges of the same nature (e.g. crypto to stablecoin conversions) may also be treated as not immediately taxable. It is always advisable to keep records of the dates and values of your transactions, as tax is assessed at the point of disposal or exchange of the asset.

Capital Gains Tax on cryptocurrency disposals

Flat Italian tax rate

Italy charges a flat tax rate of 26%. That’s your capital gains tax from crypto-assets. This rate is equal to the tax on investment income from stocks or securities, and is known as a ‘substitute tax’ on crypto gains. Currently, the 26% rate applies to profits from selling, converting or making purchases with crypto, as described above.

Exemption threshold (until 2024)

Under the rules introduced in 2023, a tax-free threshold was introduced to spare small investors from reporting minor gains. Gains up to €2,000 per tax year are exempt from tax. For example, a €5,000 Bitcoin profit in 2024 would incur a €780 tax (26% of the €3,000 above the threshold).

However, the Italian Budget Law for 2025 will abolish the €2,000 threshold on 1 January 2025. From 2025 onwards, every euro of crypto profit will be taxable.

Calculating the gain: accounting methods

This is how Italy calculates crypto capital gains:

Sale price minus purchase price = taxable gain.

If you sell cryptocurrency for fiat currency, the taxable amount is the amount of euros you receive. If you trade cryptocurrency for another asset, the law considers the market value of what you received (or of the cryptocurrency given up) at the time of the exchange to determine the proceeds.

You then subtract your cost basis, which is the amount you originally paid to acquire the cryptocurrency, including any purchase fees. If you cannot provide documentation proving the purchase price, the tax authorities will assume a cost basis of zero.

You cannot deduct any expenses or transaction fees to reduce the gain – the law forbids adding exchange commissions or similar costs to your cost basis.

If the cryptocurrency was acquired through inheritance or as a gift, the cost basis for the inherited cryptocurrency is the value at the time of inheritance, while the cost basis for gifted cryptocurrency is inherited from the donor. (If the donor’s cost is unknown, it could effectively be zero for the recipient, unless evidence to the contrary emerges.)

Losses

If you sell cryptocurrency at a loss, this loss can be offset against other cryptocurrency gains within the same tax year. However, Italian law generally does not allow crypto losses to be carried forward to offset gains in future years. Therefore, you can only offset losses within one fiscal year.

Crypto-to-crypto trades

Exchanging one cryptocurrency for another is not taxable, as this is usually considered a disposal. This would result in a capital gains calculation. However, if the two cryptocurrencies are essentially the same, the law states that this swap does not result in a gain. A classic example of this is stablecoins.

Most crypto-to-crypto trades (e.g. swapping ETH for BTC) will be considered taxable because the assets have different characteristics, nature and usability.

NFT sales

According to Italian law, NFTs are treated as cryptoassets, so selling an NFT for cryptocurrency or fiat currency is subject to capital gains tax. The taxable gain is the difference between the sale price and the acquisition cost. Any profit from NFT sales exceeding the €2,000 threshold is taxed at 26%. From 2025, all profits from NFT sales will be taxed (the threshold will be removed).

NFTs must also be declared on the annual asset report (RW form), which can be challenging given the difficulty of valuing unique NFTs.

Income tax: staking, DeFi and airdrops

Italy’s crypto tax legislation covers not only capital gains, but also income earned from crypto holdings. This includes rewards earned through staking, lending, yield farming, or other DeFi activities.

The 2023 Budget Law clarified that income from holding crypto assets, including lending rewards, is taxed at 26% with no deductions.

Staking rewards

For example, if you stake ETH and receive 0.2 ETH as a reward, valued at €300, this amount is considered miscellaneous income and would be subject to a 26% tax rate (€78). If you later sell this reward for €400, the €100 increase in value is taxed separately as a capital gain.

The important thing to note is that staking is subject to income tax when you receive it (i.e. when you have control of the reward you’ll pay income tax), and any subsequent gain or loss when you dispose of that reward is handled under the capital gains rules.

DeFi and lending

Income from yield farming, liquidity pools or crypto lending is treated in the same way. If you lend out stablecoins and earn interest in cryptocurrency, that interest is subject to income tax upon receipt. If you receive governance tokens or other cryptocurrencies as a reward, their fair market value is also taxed at 26%.

Airdrops and gifts

Receiving a gift or airdrop does not trigger income tax in itself. However, if you later sell the airdropped tokens, you will have to pay tax at 26% on the gain, using a cost basis of zero (unless you can provide evidence to the contrary). The cost basis of gifted cryptocurrency is the donor’s cost.

Mining and crypto business activities

The special crypto tax regime does not apply to individuals or entities that carry out business activities involving the trading or mining of cryptocurrencies. In such cases, income may be subject to standard progressive income tax rates or corporate income tax, plus social security contributions if applicable.

If mining is a business, the profits from selling it might be subject to Italian corporate income tax ranging between 23% and 43%.

NFT artists or miners may be categorized as self-employed professionals rather than investors for tax purposes.

Wealth tax and asset reporting (Form RW)

All Italian tax residents must declare their foreign financial assets annually via the Quadro RW of the tax return. Starting with the 2023 rules, crypto-assets are explicitly included.

You must report the market value of your crypto portfolio in euros as of 31 December each year.

Wealth tax (IVAFE)

Italy levies a small annual tax on financial assets held abroad. For cryptocurrencies, the rate is 0.2% per year on the fair market value of your holdings.

If your cryptocurrency is held with an Italian financial intermediary, this 0.2% is collected automatically as a stamp duty. If it is held on a foreign exchange or in a wallet, however, you must calculate and pay the tax yourself.

There is typically a minimum exemption for very small amounts. Assets held in blacklisted jurisdictions may be taxed at a higher rate of 0.4%.

Form RW details

You must declare the types of crypto assets held and report their year-end value (or their highest market value during the year). You must also declare NFTs, even though valuation is more difficult.

Alternative portfolio tax

There is another option to reduce crypto taxes. The alternative portfolio tax scheme enables you to pay a flat tax rate of 18% on the total market value of your cryptocurrency holdings rather than on the capital gains.

The price is calculated as of 1 January. According to Article 1, Paragraph 133 of the 2023 Budget Law, this value can be used as the basis. However, if you choose this option, you won’t be able to carry forward taxes.

Filing requirements and deadlines

Taxpayers must report crypto activity in their annual tax return, either via Modello 730 or Modello Redditi PF. Crypto gains and income are declared under ‘Miscellaneous Income’ in Quadro RL.

Non-residents

Generally, non-residents are not taxed on capital gains from cryptocurrency in Italy. The exception is if they are connected to Italian business activity.

Record keeping

Thoroughly record all purchases, sales and income from crypto activities. Missing records may result in a zero cost basis assumption, which increases your taxable gain.

New Italian tax regime for cryptocurrencies (2023–2025)

Pre-2023

Italy had no specific crypto law. Profits were taxed under the general rules for speculative foreign exchange gains, but were exempt if crypto holdings remained below approximately €51,645 for seven days.

The 2023 budget law

The Italian government introduced a clear 26% tax rate and a €2,000 exemption in 2023. A 14% step-up revaluation of assets was permitted. Furthermore, Italian tax authority granted partial amnesty on past undeclared assets or gains. The reporting obligations form became Form RW. Crypto assets held abroad became subject to a 0.2% IVAFE tax. This included NFTs explicitly.

The 2025 Budget Law came into effect on 1 January 2025.

In 2025, the Italian authorities introduced some significant changes, including:

• The €2,000 exemption was removed.
• The 26% rate remains for 2025.
• From 2026 onwards, the rate will increase to 33%.
• An 18% step-up valuation is allowed for holdings as of 1 January 2025.

There was no change to the rules on offsetting losses, and losses could still not be carried forward.

Policy direction

Italy is clearly tightening its crypto taxation policy. The government is aligning crypto taxation more closely with that of traditional investments. It is becoming increasingly clear that the EU’s upcoming MiCA and the OECD’s CARF frameworks are expected to increase oversight and reporting requirements.

Special flat tax regime for residents

Italy offers high-net-worth individuals who become new residents a €100,000 lump-sum tax. This regime:

• Covers all foreign-source income, including crypto.
• Exempts foreign-held crypto from Form RW and IVAFE.
• It applies for up to 15 years.
• €25,000 per year for each additional family member.

Crypto held on foreign exchanges would generally qualify. This makes it an attractive option for international crypto investors planning to move to Italy.

Examples of crypto taxation

1. Selling Bitcoin

Bought BTC for €10,000.

Sold for €15,000 in 2024.

Gain: €5,000, €2,000 exempt, €3,000 taxed, €780 tax.

In 2025, the entire €5,000 is taxed at 33%, resulting in a tax of €1,300.

In 2026, at a tax rate of 33%, the tax payable would be €1,650.

2. Staking rewards

Earned staking rewards worth €830 in 2024 are below the exemption threshold and are therefore not subject to tax.

In 2025, the same income would be taxed at €215.

The later sale of these rewards may incur additional capital gains tax.

3. Selling an NFT

Purchased for €1,000 and sold for €10,000 in 2024.

Gain = €9,000, €7,000 taxable, €1,820 tax.

In 2025, the full €9,000 is taxed, resulting in a tax liability of €2,340.

In 2026, at a rate of 33%, the tax would be €2,970.

4. Buying goods with crypto

Used 0.1 BTC, worth €3,500, to buy a car.

The original cost of the BTC was €2,000.

Gain: €1,500. This is taxed as a disposal.

Conclusion

Italy’s approach to taxing cryptocurrencies and NFTs in 2025 is one of the most well-established and developed in Europe. With the exemption ending and rates rising, investors must plan accordingly. Proper record keeping, careful timing and an understanding of optional revaluation rules can all have a significant impact on your tax obligations. For individuals relocating to Italy, the flat-tax regime offers a distinct advantage.

However, you should always consult a professional for tailored advice before paying crypto taxes in Italy.