Changes in Italy's Crypto Tax Law 2026

Recently, the Deputy Economy Minister Maurizio Leo has proposed to increase the capital gain tax rate on Bitcoin from 26% to 42%. The move coincides with the European Union’s preparation to implement its Markets in Crypto-Assets Regulation (MiCA), which aims to create a unified regulatory framework for cryptocurrencies across the EU.

Currently, Italy taxes capital gains from cryptocurrencies over €2,000 ($2,171) at 26%, classifying them as “miscellaneous income.” The proposed hike is one of measures taken by the Italian government to stabilize the country’s economy. In the recent past, Italy has seen huge upsurge in adoption of Bitcoin.

Apart from the above increase, the Italian government is also preparing to introduce MiCA regulations in Italy. The legislative decree of September 5, 2024, No. 129, published in Official Gazette No. 215 on September 13, 2024, implements the provisions of the European Regulation 2023/1114, into Italian law. The new rules primarily focus on the regulation of crypto-assets, market transparency, investor protection, and the proper management of financial assets. Correspondingly, amendments were also made Italian Banking law.

The MiCAR Regulation will come into full effect on December 30, 2024, while the provisions for issuance, public offering, and trading admission of EMT and ART have been in effect since June 30, 2024.

Links for reference -

‍https://www.boccadutri.com/crypto-assets-micar-regulation/#:~:text=The%20new%20rules%20primarily%20focus,Legislative%20Decree%2058%2F98

https://decrypt.co/286630/italy-increase-bitcoin-capital-gains-tax

https://btctimes.com/italy-considers-raising-bitcoin-capital-gains-tax-to-42-from-26/#:~:text=Italy%20plans%20to%20raise%20the,for%20the%20Digital%20Services%20Tax.

Italy’s Proposed Crypto Tax Hike in 2026

In early 2026, Italy announced a significant proposal to increase the capital gains tax rate on Bitcoin and other cryptocurrencies from 26% to 42%. Deputy Economy Minister Maurizio Leo introduced this measure as part of broader efforts to stabilize Italy’s economy and increase tax revenues. Currently, gains over €2,000 ($2,171) are classified as “miscellaneous income” and taxed at 26%. If passed, the new law will place crypto earnings under a much heavier tax burden, aligning them more closely with higher-income tax brackets. For investors, this means rethinking strategies around crypto disposals, holding periods, and portfolio planning.

Alignment with MiCA Regulations

Alongside the tax proposal, Italy is also preparing for the rollout of the Markets in Crypto-Assets Regulation (MiCA), a European Union framework designed to harmonize crypto rules across member states. Italy implemented MiCA provisions through Legislative Decree No. 129 of September 5, 2024, published in the Official Gazette on September 13, 2024. These regulations focus on market transparency, investor protection, and proper financial asset management, while also amending parts of Italian banking law. Notably, provisions for issuance, public offering, and trading of E-Money Tokens (EMTs) and Asset-Referenced Tokens (ARTs) have been effective since June 30, 2024, with the full MiCA regulation coming into force by December 30, 2024.

What This Means for Italian Investors

The combination of a steeper tax rate and the introduction of EU-wide regulations represents a major shift for Italy’s crypto landscape. On one hand, investors will face higher tax obligations on gains, while on the other, they will benefit from clearer legal protections and standardized rules across Europe. These changes highlight the Italian government’s dual strategy: tightening fiscal policies while also encouraging transparency and accountability in the fast-growing digital asset sector. For active crypto traders and long-term holders alike, staying compliant with both Italy’s new tax framework and MiCA’s reporting requirements will be critical in 2026.

About the author

Deepak Pareek

Head of Tax & Accounting - Kryptos