Crypto Tax Italy 2026: Everything You Need to Know

Since 2023, gains from disposal of crypto-assets are subject to a 26% substitute tax (art. 67, para. 1, c-sexies TUIR, introduced by the 2023 Budget Law). The 2025 Budget Law legislated an increase to 33% from 2026 — always confirm the rate in force with the Agenzia delle Entrate.

The €2,000 non-taxable threshold on annual gains was abolished from 2025: gains are now taxable from the first euro. Up to 2024, net gains below €2,000 were exempt; from 2025 that exemption no longer exists.

Losses can be offset against gains in the same year, and any excess can be carried forward for four years (art. 68, para. 5 TUIR).

Example (2025 rate, 26%): you sell BTC for €30,000 with a weighted average cost of €18,000. Gain: €12,000. Tax: €12,000 × 26% = €3,120 (from 2026, at 33%, it would be €3,960). If you also realise a €4,000 loss on ETH in the same year, your net gain drops to €8,000, and the 2025 tax to €2,080.

Italy uses the weighted average cost (WAC) method to determine the fiscal cost of each crypto-asset. WAC is calculated by dividing total acquisition cost (all purchases of a given crypto-asset) by total quantity held.

Example: you buy 1 BTC at €20,000 in January and 1 BTC at €30,000 in July. Your WAC is (€20,000 + €30,000) / 2 = €25,000 per BTC. If you sell 1 BTC at €40,000 in December, the gain is €40,000 − €25,000 = €15,000.

WAC is applied per crypto-asset and per taxpayer — not per exchange. All your BTC positions, wherever held (Binance, Kraken, private wallet), form a single WAC calculation.

Note: Italian WAC differs from German FIFO and French WAP. SafeTax automatically applies the correct method based on your country of tax residence.

Since 2023, all Italian tax residents holding crypto-assets must complete Quadro RW of their tax return (Modello Redditi PF), regardless of value held. The obligation also applies to crypto in self-custody wallets (hardware or software).

Quadro RW serves both fiscal monitoring (reporting of holdings) and IVAFE calculation (Imposta sul Valore delle Attività Finanziarie all'Estero), a 0.2% annual wealth tax on the average value of crypto-assets held with non-resident intermediaries.

Italian-registered exchanges (e.g. Young Platform, Conio, The Rock Trading) are exempt from IVAFE as they act as withholding agents. For foreign exchanges (Binance, Coinbase, Kraken, etc.), the taxpayer is responsible for IVAFE calculation and payment.

Realised gains are declared in Quadro RT (Other financial income), section II.

One of Italy's most specific rules: swaps between crypto-assets « with the same characteristics and functions » do not generate a taxable gain (art. 67, para. 1, c-sexies TUIR, final sentence).

Typical example: swapping BTC for ETH — both are payment/store-of-value cryptocurrencies, so the swap is not taxed. The cost basis of the original BTC transfers to the newly received ETH.

Borderline example: swapping BTC for a specific NFT, or for a very different utility token (e.g. DAO governance token). Here « same characteristic/function » may not be recognised, and the swap generates a taxable gain.

The Italian Tax Agency has not published an exhaustive list, but Circular 30/E of 27 October 2023 provides interpretative criteria. When in doubt, consult a crypto-specialist accountant.

Staking rewards and mining income are classified as « other income » (art. 67, para. 1, c-sexies TUIR) and taxed at the same rate as gains — 26% in 2025, 33% from 2026 — upon receipt, valued at the euro market price on the date of receipt.

Airdrops received without consideration are likewise taxed as other income (26% in 2025, 33% from 2026) at market value on the receipt date. When you later sell those tokens, the gain is calculated against this initial declared value.

DeFi returns (liquidity mining, yield farming, lending) follow similar treatment to staking, though exact classification may vary by protocol structure. For complex DeFi situations, consult a tax advisor.

DAC8: from 2026, exchanges and custodial wallets are required to automatically report their European clients' data to national tax authorities. Incomplete declarations are therefore easily detected.

Mistake 1: ignoring Quadro RW because you only hold a few hundred euros in crypto. The reporting obligation exists regardless of value — even minimal holdings must be declared.

Mistake 2: thinking the €2,000 threshold still exists. It was abolished from 2025 — gains are taxable from the first euro (the exemption applied only up to 2024).

Mistake 3: applying WAC per exchange instead of per crypto-asset. WAC is calculated by consolidating all purchases of the same asset, regardless of exchange.

Mistake 4: declaring « same nature » swaps as taxable. A BTC → ETH swap does not generate a taxable gain.

Mistake 5: forgetting IVAFE. For crypto held on foreign exchanges, the 0.2% wealth tax must be calculated and paid even if you realised no gains during the year.