Cryptocurrency Taxation In Italy: Tax Rates, Tax Returns And The RW Section

Cryptocurrency taxation in Italy concerns income and other proceeds arising from crypto-assets (Bitcoin, Ethereum, stablecoins, tokens and other digital representations of value).

The 2025 Budget Law updated the parameters set out in Law No. 197/2022, increasing the tax rate on cryptocurrency capital gains to 33% from 1 January 2026.

Up to the 2024 tax year, capital gains became taxable when they reached the overall annual threshold of EUR 2,000.

The 2025 Budget Law abolished this threshold from 1 January 2025.

In summary: capital gains realised in 2025 are generally taxed at 26%; from 1 January 2026, the standard rate rises to 33%. The previous annual threshold of EUR 2,000 no longer applies. Holding crypto-assets may entail reporting obligations and a tax of 0.2%, even if no sale takes place.

Cryptocurrency taxation in Italy: what has changed

Before the legislature clarified the tax position of those investing in crypto-assets, the Italian Revenue Agency had issued Resolution No. 72/E of 2016, under which tax applied only if the aggregate balance of all the taxpayer’s wallets exceeded EUR 51,645.69 for at least seven consecutive business days during the tax year.

Below this threshold, gains were considered tax-free for private individuals.

The regulatory gap concerning crypto-assets was closed by Law No. 197/2022 (the 2023 Budget Law): the legislature ceased to treat cryptocurrencies as “foreign currencies” and introduced a separate tax category, namely crypto-assets.

A 26% substitute tax on capital gains was introduced, together with the tax on the value of crypto-assets (equal to 0.2% per year).

The previous threshold of EUR 51,645.69 was replaced by a much stricter allowance of EUR 2,000 per year for aggregate capital gains.

In 2025, the Budget Law abolished the EUR 2,000 allowance for capital gains, making the entire realised capital gain taxable.

The tax rate on capital gains and proceeds from crypto-assets was increased from 26% to 33%.

Indirect investments and euro-denominated e-money tokens that comply with the European MiCA rules remain subject to the 26% rate.

As a general rule, the 26% rate continues to apply to capital gains and other proceeds realised in 2025.

The tax return filed in 2026 naturally concerns income earned in 2025, which is still taxed at 26%.

Income earned in 2026 will be reported in 2027.

Please note. From 1 January 2026, the standard rate on capital gains and other proceeds arising from crypto-assets is 33%. The 26% rate continues to apply to euro-denominated e-money tokens that meet the specific conditions laid down by the 2026 Budget Law and the MiCA Regulation.

What cryptocurrency holders must do

Anyone holding cryptocurrencies in Italy must comply with specific tax monitoring and taxation obligations.

The European DAC8 system, linked to the OECD CARF standard, applies from 1 January 2026.

The service providers concerned must collect and report information about users and relevant transactions to the tax authorities.

The first exchanges between tax administrations concerning 2026 data are expected in 2027.

A distinction must be made between:

• mere holding;
• realised capital gains;
• proceeds obtained through staking, mining, lending or other activities;
• tax monitoring obligations;
• the tax year in which the transaction was carried out.

Crypto-assets and taxation

Crypto-assets are digital representations of value or rights that can be transferred and stored electronically using distributed ledger technology or similar technology.

For tax purposes, not all cryptocurrency transactions necessarily produce the same effect.

It is necessary to assess:

• the type of crypto-asset;
• the person carrying out the transaction;
• the reason for the transfer;
• the acquisition value and disposal value;
• the frequency and professional nature of the activity;
• whether an intermediary is involved.

A change in the value of a cryptocurrency that is still being held does not, in itself, amount to a realised capital gain.

A tax liability arises when the gain is realised through a taxable transaction.

When tax is payable on cryptocurrencies

Tax must be considered in the tax year in which the relevant event occurs.

The acquisition date, sale date and date on which any rewards are received may have different consequences.

Merely holding crypto-assets does not, in itself, generate a taxable capital gain: it does not necessarily give rise to income.

Ownership may be relevant for tax monitoring and reporting obligations and for the application of the tax on the value of crypto-assets.

Capital gains tax applies when the gain is realised through a taxable transaction.

It is necessary to consider the tax year in which the sale, exchange or use of the crypto-asset took place, or in which the proceeds were received.

From 1 January 2026, capital gains (and other proceeds arising from crypto-assets) are generally subject to a 33% substitute tax.

For certain euro-denominated e-money tokens that meet the conditions laid down by the legislation in force, the 26% rate continues to apply.

For income earned in 2025 and reported in 2026, the applicable rate is generally 26%, without the previous annual threshold of EUR 2,000.

Which transactions are taxable

Exchanges between crypto-assets

Not all crypto-to-crypto exchanges are automatically exempt.

An exchange does not result in the realisation of capital gains or losses when it involves crypto-assets with the same characteristics and functions.

The individual transaction must be assessed where the exchanged assets have different characteristics or functions, or where one of the assets is an e-money token or a stablecoin.

Conversions between euros and certain euro-denominated e-money tokens may also be subject to specific rules.

Transfers between personal wallets

The transfer of crypto-assets between wallets belonging to the same taxpayer does not ordinarily constitute a sale or exchange.

It is nevertheless important to retain the evidence needed to prove that both wallets belong to the same person.

In particular, it is advisable to retain:

• the addresses of the originating and destination wallets;
• the date and identifier of the transaction;
• the transaction hash;
• the quantity and type of crypto-assets transferred;
• any statements or reports from the platforms used.

Payments in cryptocurrencies

Using cryptocurrencies to purchase goods or services constitutes a transfer for consideration.

A capital gain arises from the difference between the value of the crypto-asset at the time of payment and its recognised tax cost.

To document the transaction correctly, it is advisable to retain:

• the value in euros of the crypto-asset at the time of payment;
• the recognised acquisition cost for tax purposes;
• the date and identifier of the transaction;
• a description of the goods or services purchased;
• the invoice, receipt or other document relating to the payment;
• any fees incurred.

The reconstruction must also include any additional steps involving multiple exchanges and wallets.

The final balance displayed by a platform alone is not sufficient to establish the acquisition cost and origin of the crypto-assets.

Tax returns: guidelines

Cryptocurrency holdings must be included in the tax return for monitoring purposes, even if nothing has ever been sold or withdrawn.

• What to complete: section RW (Modello Redditi PF, the Italian Individual Income Tax Return) or section W (Modello 730).
• Minimum threshold and values to be reported: as a general rule, no minimum threshold applies for tax monitoring purposes. The value at the beginning and end of the holding period must be stated, together with the other information required by the applicable tax return form. If the crypto-assets were held throughout the year, the values will normally correspond to those recorded on 1 January and 31 December; if they were acquired or disposed of during the year, the beginning and end of the actual holding period must be considered instead.

To determine whether a cryptocurrency position must be reported, it is necessary to consider:

• whether the crypto-assets are held directly or through an intermediary;
• where the intermediary is established;
• whether a non-custodial wallet is involved;
• whether the private keys are available;
• the tax return form and the instructions for the relevant year.

It is not sufficient simply to distinguish between an “Italian wallet” and a “foreign wallet”.

The position must be reconstructed based on the actual custody arrangements and the applicable rules.

Section RT and capital gains

Section RT is used to report capital gains and other financial income, in accordance with the instructions for the applicable tax return form.

It is the section intended for capital gains and other financial proceeds realised by resident individuals and the other persons identified in the instructions.

The specific reporting requirements may vary according to the tax year, the form used and the nature of the income.

Stamp duty and tax on the value of crypto-assets

Crypto-assets are subject to an annual levy of 0.2%.

Where a resident intermediary is involved, stamp duty may apply; in other cases, the taxpayer may be required to calculate and pay the tax on the value of crypto-assets through the tax return.

The calculation must take into account the relevant value, the holding period and the ownership share.

Documents and data to retain

To reconstruct one’s tax position correctly, it is advisable to retain:

• exchange account statements;
• annual platform reports;
• wallet addresses;
• transaction hashes;
• transaction dates and values;
• transfer documentation;
• costs and fees;
• records relating to staking, mining, lending and airdrops;
• any contracts or documents relating to intermediated investments.

An organised record may be more useful than the final balance displayed on the exchange alone, because the balance does not show the history of acquisitions and transfers.

Non-custodial wallets and hardware wallets

A non-custodial wallet allows the user to control the private keys directly.

A hardware wallet stores the keys on a physical device, but does not necessarily eliminate reporting obligations.

Technical custody must not be confused with an absence of tax relevance. Even where no intermediary is involved, the taxpayer must be able to reconstruct the origin, amount and movements of the crypto-assets.

Staking, mining, lending and NFTs

Staking involves making a certain quantity of tokens available to participate in the operation of a network or service and receive a reward.

Rewards received must be recorded with the following information:

• date of receipt;
• quantity of tokens;
• value in euros;
• platform used;
• any fees;
• subsequent sale or conversion.

The tax classification may depend on how the activity is carried out and on the taxpayer’s circumstances.

Occasional activity must not automatically be confused with an organised professional activity.

Mining may have different tax implications depending on whether it is occasional or organised and carried out on a professional basis.

The following must be assessed:

• continuity of the activity;
• resources employed;
• energy costs;
• hardware used;
• organisation;
• revenue and liquidation methods;
• whether an economic activity is carried on habitually.

NFTs do not constitute a uniform tax category.

A distinction must be made between their acquisition, subsequent sale, professional creation and any royalties.

Airdrops and tokens received free of charge must also be recorded, because a subsequent disposal may require the origin and initial value to be reconstructed.

Cryptocurrency taxation for companies

For companies, the accounting and tax treatment of crypto-assets depends on the business conducted and the purpose for which they are held.

Their accounting treatment must be assessed in light of the applicable accounting standards and the characteristics of the transaction.

Where a company conducts organised trading activities, the resulting gains and losses may form part of its business income.

Transactions carried out on behalf of clients, risk management, fee income and transaction frequency must also be taken into account.

Staking and other corporate proceeds

Proceeds from staking, lending, validation or services connected with crypto-assets require separate consideration.

For a company, it is necessary to examine:

• its corporate purpose;
• the activity actually carried out;
• contracts with platforms;
• the accounting treatment of tokens;
• the time at which revenue is recognised;
• any applicable direct and indirect taxes.

MiCA, DAC8 and tax controls

The European MiCA Regulation governs certain aspects of the crypto-asset market, including certain issuers and service providers.

MiCA does not, by itself, determine how much an Italian taxpayer must pay on capital gains.

Taxation remains governed by national tax legislation, while the European regulation primarily affects the framework for authorisation, transparency and user protection.

Cryptocurrency tax scams

One of the most common scams involves contacting the victim and claiming that they must pay a tax, fee or deposit in order to withdraw or unlock the cryptocurrencies.

Such a request is not equivalent to the ordinary payment of tax.

Income tax is reported and paid by the taxpayer solely through the prescribed tax payment methods; it is not sent to a wallet.

How to protect yourself from fake tax demands

When investing in crypto, you must never:

• send cryptocurrencies to “unlock” an account;
• disclose seed phrases or private keys;
• share OTP codes;
• install remote-control software;
• pay anyone who promises the guaranteed recovery of funds;
• click links received through unverified messages.

In the event of fraud, you should retain screenshots, wallet addresses, transaction hashes, emails and conversations, promptly file a report with the authorities and consider seeking specialist advice.

Our advice is to keep records of all transactions and remain alert to all developments in this area.

For advice and assistance, please do not hesitate to contact our lawyers.

FAQs on cryptocurrency taxation in Italy

How much tax is payable on cryptocurrencies in 2026?

From 1 January 2026, capital gains and other proceeds from crypto-assets are generally taxed at 33%. The 26% rate continues to apply to certain euro-denominated e-money tokens.

Do I have to report cryptocurrencies if I do not sell them?

Holding them does not, in itself, generate a capital gain, but it may entail tax monitoring obligations and payment of the tax on the value of crypto-assets.

Do I have to report cryptocurrencies held in a personal wallet?

As a general rule, yes. Crypto-assets held directly through non-custodial wallets or hardware wallets must be taken into account for tax monitoring purposes.

Is an exchange between two cryptocurrencies taxable?

Not always. An exchange is not taxable if it involves crypto-assets with the same characteristics and functions. Other exchanges must be assessed on a case-by-case basis.

Can cryptocurrency losses be offset against gains?

Properly documented and reported capital losses may be offset against capital gains in the same category, subject to the limits and timeframes laid down by law.

How are cryptocurrency capital gains reported?

Capital gains are reported in section RT of the Modello Redditi PF or section T of the Modello 730. Monitoring is instead carried out through section RW or W.

How can I correct a previous tax return?

Omissions relating to previous years may be corrected, where the relevant conditions are met, by filing a supplementary tax return and making a voluntary disclosure with payment of reduced penalties (ravvedimento operoso). The special procedure introduced in 2023 is no longer available.