How to File Crypto Tax in Italy (2026 Complete Guide)

How to File Crypto Tax in Italy

Italy has made significant changes to its cryptocurrency tax rules. For the 2025 tax year, crypto capital gains are taxed at a 26% substitute tax rate, with the small-gains exemption removed.

Starting January 1, 2026, the standard rate will increase to 33% under the Italian Budget Law. Taxpayers may also opt for an 18% flat tax regime based on the total value of their crypto portfolio.

This guide explains when crypto is taxable in Italy, how to calculate gains and income, which forms to file with the Agenzia delle Entrate, key deadlines, and step-by-step filing instructions.

Why Crypto Is Taxable in Italy

Under Italian tax law, cryptocurrencies are generally treated as financial assets. Profits from disposing of crypto—including selling for fiat, exchanging for other crypto, or using crypto to purchase goods or services—typically generate taxable capital gains.

Certain crypto-related income (such as mining rewards, staking yields, or professional trading) may be taxed separately as income under the IRPEF (Imposta sul Reddito delle Persone Fisiche) regime.

Italian tax authorities also require reporting of foreign assets held abroad, including crypto. Additionally, EU directives such as DAC8 are expanding automatic sharing of crypto transaction data with tax authorities, making compliance increasingly important.

When Crypto Is Taxable in Italy

1. Selling or Converting Crypto for Fiat

Selling cryptocurrency for euros or another fiat currency results in a capital gain or loss that must be reported.

2. Using Crypto for Purchases

Spending crypto to buy goods or services is treated as a disposal event and triggers taxable gains or losses.

3. Crypto-to-Crypto Trades

Exchanging one cryptocurrency for another is generally treated as a taxable disposal event in Italy. Gains or losses must be calculated in euros.

4. Mining, Staking, Airdrops, and Rewards

Income from crypto-related activities such as mining rewards, staking yields, airdrops, or forks is generally treated as income and may be taxed under IRPEF at progressive income tax rates.

5. Foreign Asset Reporting

Italian residents must report cryptocurrency held on foreign exchanges or wallets under Quadro RW for monitoring foreign financial assets.

Italy Crypto Tax Rates (2026)

Capital Gains Tax

• 26% substitute tax on crypto gains for tax years up through 2025
• 33% substitute tax on crypto gains starting January 1, 2026

Capital gains are calculated as sale proceeds minus cost basis and must be reported on your annual Italian tax return.

Alternative Tax Regime

Italian taxpayers may choose to pay a flat 18% tax on the total value of their crypto portfolio as of January 1 of the tax year.
This option simplifies reporting but does not allow loss carryforwards or deductions.

Income Tax on Crypto-Related Income

Crypto earned as income (from mining, staking, salaries, or other activities) may be taxed under IRPEF progressive income tax rates, ranging approximately from 23% to 43%, depending on total taxable income.

Wealth and Stamp Duties

• 0.2% IVAFE wealth tax on foreign crypto holdings
• 0.2% stamp duty on crypto held with Italian intermediaries or exchanges

How to Calculate Crypto Gains and Losses

Net Gain = Sale Proceeds (EUR) − Cost Basis (EUR)

• Sale Proceeds: Euro value of crypto at disposal
• Cost Basis: Euro value when acquired, including fees

Example:
You buy 1 ETH for €1,000 and sell it later for €1,500 → Taxable gain: €500

Under the alternative 18% flat tax regime, instead of calculating gains, you pay 18% of the portfolio value on January 1.

What Transactions Are Not Taxable

The following transactions are generally not taxable by themselves:

• Buying crypto with fiat
• Transferring crypto between your own wallets
• Holding crypto without disposal (unless you opt for the 18% flat tax regime)

Reporting obligations may still apply for large holdings or foreign wallets.

Required Forms and Filing in Italy

Forms You Need

• Modello Redditi PF (or 730): Report crypto capital gains and income
• Quadro RW: Report crypto held abroad
• IVAFE / Stamp Duty Sections: Calculate wealth and asset taxes

Filing Deadline

• Italian tax year runs from January 1 to December 31
• Standard filing deadline is usually 30 September (paper) or 30 November(electronic), depending on the form and filing method
• Check the Agenzia delle Entrate website yearly for any updated deadlines

You can file online through the official portal or work with an Italian tax professional.

Step-by-Step: How to File Crypto Tax in Italy

Step 1 – Gather Transaction Records

Collect complete transaction data from all wallets, exchanges, and DeFi platforms, including dates, euro values, and fees.

Step 2 – Identify Taxable Events

Separate taxable disposals (selling, spending, swapping) from non-taxable events (wallet transfers).

Step 3 – Calculate Gains and Income

Calculate gains using cost basis in euros, or determine portfolio value for the 18% flat tax option.

Step 4 – Complete Tax Forms

Report gains and income on Modello Redditi PF, foreign holdings on Quadro RW, and calculate IVAFE or stamp duty if applicable.

Step 5 – Submit Before the Deadline

File electronically or through a tax professional and keep records supporting all calculations.

Common Mistakes to Avoid

• Not tracking cost basis correctly
• Failing to report foreign crypto holdings under Quadro RW
• Ignoring the alternative 18% tax option
• Misclassifying income vs. capital gains
• Missing filing deadlines and incurring penalties

Can Kryptos Help With Italy Crypto Tax?

Yes. Kryptos automatically imports your transaction history, calculates gains and losses in euros, and generates ready-to-file summaries to help complete Modello Redditi PF, Quadro RW, and IVAFE or stamp duty calculations.

Conclusion

Filing crypto tax in Italy for 2026 requires understanding updated capital gains rates—26% for prior years and 33% for 2026 onward—along with optional regimes such as the 18% portfolio value tax.

Accurate tracking, proper cost basis calculation, and correct reporting with the Agenzia delle Entrate will help you stay compliant and avoid penalties. With proper documentation and deadline management, you can file your Italian crypto taxes with confidence.

About the author

Payam Masood

Head of Content and Social Media - Kryptos