How to Save Crypto Tax in Italy

How to Save Crypto Tax in Italy (2026 Guide)

Italy’s crypto tax landscape changed significantly under the latest Italian Budget Law. From January 1, 2026, capital gains on crypto assets are generally taxed at a 33% substitute tax on net gains. The previous €2,000 annual exemption was abolished, meaning even small gains are now taxable.

Italy also introduced an alternative option to pay a flat 18% substitute tax on the value of your crypto portfolio as of January 1, instead of tracking every disposal. Income-like crypto activities—such as mining, staking, NFTs, and DeFi earnings—may be taxed under ordinary income tax brackets.

This guide explains key tax-saving strategies for Italian crypto investors in 2026, how Italian crypto taxation works, and how tools like Kryptos help you optimise your tax position.

Italy Crypto Tax Rules – Updated for 2026

Before you can save tax, you must understand how crypto is taxed in Italy.

1. Capital Gains Tax on Crypto

From January 1, 2026, most capital gains on crypto disposals are subject to a 33% substitute tax on net gains, regardless of amount.

Key points:

• Capital gains include selling crypto for fiat, exchanging crypto, or spending crypto on goods or services.
• The former €2,000 exemption has been completely removed.

2. Optional Alternative Portfolio Tax (18%)

Instead of the standard capital gains method, taxpayers may elect a portfolio-based substitute tax.

Key features:

• 18% tax on the total value of crypto holdings on January 1
• Losses cannot be deducted
• Tax is based on portfolio value, not individual transactions

This option may benefit long-term holders with large portfolios and limited trading activity.

3. Income Tax on Crypto-Related Earnings

Certain crypto activities are taxed as ordinary income, not capital gains:

• Mining rewards
• Staking rewards
• NFT earnings
• DeFi rewards
• Crypto received as payment for services

Such income is generally taxed under IRPEF progressive rates (23%–43%).

4. Stamp Duty and IVAFE

Italian residents may also owe:

• Stamp duty (imposta di bollo) of 0.2% on crypto held with Italian intermediaries
• IVAFE (0.2%) on crypto held outside Italian intermediaries, including self-custody wallets

5. Reporting Requirements

Crypto must be reported in the annual Italian tax return (e.g., Modello Redditi PF or 730).
Foreign crypto holdings may also need to be reported under Quadro RW for monitoring purposes.

How to Save Crypto Tax in Italy – Legal Strategies

1. Harvest Losses to Offset Gains

Under the standard 33% regime, recognising losses within the same tax year can still reduce your taxable base.

Strategy:

• Realise losses before year-end
• Offset them against gains in the same tax year
• Reduce your total substitute tax

Accurate documentation is essential.

2. Consider the 18% Alternative Portfolio Tax

For investors with large portfolios and few disposals, the portfolio tax may be more efficient.

Strategy:

• Elect the 18% substitute tax on portfolio value as of January 1
• Avoid tracking every taxable event
• Skip individual gain/loss calculations

This option can significantly reduce tax for long-term holders.

3. Time Disposals Around Lower-Income Years

If you earn crypto income (e.g., staking or mining), timing matters.

Strategy:

• Plan disposals in years when overall taxable income is lower
• Reduce exposure to higher IRPEF brackets
• Coordinate crypto income with personal income tax planning

4. Track Cost Basis Accurately

Taxable gain = Sale proceeds − Cost basis

Strategy:

• Maintain detailed records of purchase price, dates, and fees
• Use consistent accounting methods
• Adjust cost basis correctly when applicable (e.g., under alternative regime)

Accurate cost basis lowers taxable gains and supports loss recognition.

5. Separate Income vs Capital Gains Correctly

Proper classification is critical.

• Income events: taxed under IRPEF (e.g., staking rewards)
• Capital gains: taxed under the substitute tax regime

Strategy:

• Document receipt dates and fair market value in EUR
• Track income separately from investment disposals
• Avoid mixing income with capital gain calculations

6. Use Tax-Free or Deferred Events Where Possible

Certain actions do not trigger tax:

• Transfers between your own wallets
• Buying crypto with fiat
• Holding crypto without selling

Strategy:

• Avoid unnecessary disposals late in the year
• Group taxable events strategically

7. Plan for NFTs and DeFi Carefully

Some activities create additional taxable events:

• NFT sales and royalties
• Lending, staking, or liquidity provisioning rewards

Strategy:

• Assess tax impact before participating
• Track fair market value at each taxable event

These may be taxed as income or capital gains depending on circumstances.

8. Keep Audit-Ready Documentation

Italian tax authorities require detailed records.

Strategy:

• Store timestamps, EUR values, and transaction proofs
• Maintain Quadro RW documentation for foreign holdings
• Document your choice of tax regime (standard vs portfolio)

Good documentation protects you in case of review.

Common Mistakes That Increase Crypto Tax in Italy

• Not tracking cost basis correctly
• Misclassifying income vs capital gains
• Forgetting stamp duty or IVAFE
• Failing to elect the most tax-efficient regime
• Ignoring DeFi or NFT tax implications
• Missing reporting of foreign wallets

Each mistake can increase your effective tax liability.

How Kryptos Helps You Save Crypto Tax in Italy

Kryptos automates crypto tax optimisation so you can:

• Import transactions from wallets and exchanges
• Calculate gains and losses under the 33% standard regime
• Analyse whether the 18% portfolio tax is more efficient
• Track income vs capital taxable events
• Monitor stamp duty and IVAFE exposure
• Generate ready-to-file Italian tax summaries
• Maintain audit-ready documentation

With Kryptos, you see your tax position before filing, enabling proactive planning and savings.

Frequently Asked Questions

1. What is the capital gains tax rate on crypto in Italy in 2026?
Capital gains are generally taxed at a 33% substitute tax.

2. Can I choose a different tax option?
Yes. You may elect an 18% substitute tax on portfolio value as of January 1.

3. Are crypto earnings like staking taxed differently?
Yes. Mining, staking, and similar income may be taxed under IRPEF rates (23%–43%).

4. Is there an exemption threshold for gains?
No. The previous €2,000 exemption was abolished and no longer applies.

5. Do I pay tax on self-custody wallets?
You may owe IVAFE (0.2%) on crypto held outside Italian intermediaries.

6. How does Kryptos help reduce crypto tax in Italy?
Kryptos automates tracking, analyses tax options, calculates gains and income, and prepares ready-to-file reports.

Conclusion

Saving crypto tax in Italy in 2026 requires strategic planning and accurate reporting. You can legally minimise tax by:

• Harvesting losses before year-end
• Considering the 18% alternative portfolio tax
• Timing disposals around income levels
• Tracking cost basis meticulously
• Separating income from capital events
• Planning DeFi and NFT activity carefully
• Maintaining complete documentation

Using tools like Kryptos gives you real-time insight into your crypto tax position, helping you make informed decisions well before tax season.