Italy's approach to cryptocurrency taxation has undergone a dramatic transformation. For years, the tax treatment of digital assets existed in a grey area, with conflicting guidance from the Agenzia delle Entrate and no specific legislation. That changed with the 2023 Budget Law (Legge di Bilancio 2023), which introduced Italy's first dedicated tax framework for crypto-assets (cripto-attività). This framework has been refined through subsequent legislation and is now well-established for 2026.
This guide explains how cryptocurrency is taxed under the current Italian rules, what you need to report, and how to stay compliant with the Agenzia delle Entrate.
Capital Gains Tax on Cryptocurrency
Under the current Italian law, capital gains (plusvalenze) from the sale or exchange of crypto-assets are subject to a flat substitute tax (imposta sostitutiva) of 26%. This applies to all gains realised from the disposal of cryptocurrencies, tokens, and other digital assets as defined under the Markets in Crypto-Assets (MiCA) regulation framework.
Key rules for 2026:
- Tax rate: 26% flat rate on net capital gains
- De minimis threshold: Capital gains below €2,000 in a single tax year are exempt. Only gains above this threshold trigger taxation.
- Calculation method: Gains are calculated as the difference between the sale price and the acquisition cost (costo di acquisto). If you cannot document the original purchase price, the Agenzia delle Entrate may use the value on 1 January 2023 (the date the new framework took effect) as a substitute cost basis.
- Loss offsetting: Capital losses from crypto can be offset against capital gains from crypto (and other capital gains in the same category) within the same tax year. Unused losses can be carried forward for up to four years.
For example, if you bought 1 Bitcoin at €25,000 and sold it for €50,000, your gain is €25,000. After the €2,000 exemption, the taxable gain is €23,000, and the tax is 26% × €23,000 = €5,980. Use our crypto tax calculator to model your specific transactions.
The Revaluation Option (Rivalutazione)
The 2023 Budget Law offered taxpayers the option to revalue their crypto holdings as of 1 January 2023 by paying a one-off substitute tax of 14% on the total value. This effectively reset the cost basis to the 1 January 2023 market value, eliminating any embedded gains accumulated before that date.
For early Bitcoin adopters who bought at very low prices, this was an attractive option — paying 14% once to avoid 26% on potentially enormous gains. The deadline for this option has passed for most taxpayers, but it remains relevant for understanding the cost basis of assets held through the transition.
Monitoring Tax (IVAFE) on Foreign Crypto Accounts
If you hold cryptocurrency on exchanges or platforms based outside Italy, you may be subject to IVAFE (Imposta sul Valore delle Attività Finanziarie detenute all'Estero). This is a monitoring tax of 0.2% per year on the value of foreign financial assets, including crypto held on foreign exchanges.
For €100,000 in crypto on a foreign exchange, the annual IVAFE is €200. While not enormous, it is important to include in your tax planning. Whether crypto on a decentralised wallet (not held on any exchange) qualifies as a "foreign financial asset" is still debated, but the conservative approach is to report it.
Reporting Requirements (Quadro RW)
All Italian tax residents must report their crypto holdings in the Quadro RW section of their annual tax return, regardless of whether they realised any gains. This is a monitoring obligation (monitoraggio fiscale) similar to reporting foreign bank accounts.
You must report:
- The value of all crypto holdings as of 31 December (and 1 January) of the tax year
- The exchange or wallet where the assets are held
- The type of crypto-asset
Failure to report in Quadro RW can result in penalties of 3% to 15% of the unreported value (or 6% to 30% if the assets are held in countries on Italy's black list of non-cooperative jurisdictions). These penalties are separate from and additional to any tax on capital gains.
Practical Tips for Italian Crypto Taxpayers
- Keep detailed transaction records — date, amount, exchange rate in EUR, fees paid, and the counter-party (exchange or wallet address)
- Use portfolio tracking software that generates Italian-compliant tax reports
- Record the EUR value of all holdings on 31 December for Quadro RW reporting
- If you trade frequently, consider hiring a commercialista with specific crypto experience
- Remember that swapping one crypto for another (e.g., BTC to ETH) is a taxable disposal event
Calculate your expected tax liability with our crypto tax calculator and compare it with your capital gains tax obligations on other investment income.
Key Takeaways
- Crypto capital gains are taxed at a flat 26% above a €2,000 annual de minimis threshold.
- Losses can offset gains within the year and be carried forward for four years.
- IVAFE of 0.2% applies to crypto held on foreign platforms.
- All holdings must be reported in Quadro RW regardless of gains — penalties for non-compliance are severe.
- Use the crypto tax calculator to estimate your liability.