Italy has evolved its crypto tax framework significantly. Here’s the current state of play for Italian residents.
Tax Classification
In Italy, crypto is treated similarly to foreign currency for tax purposes.
| Asset Type | Tax Treatment |
|---|---|
| Crypto (as investment) | Capital gains tax |
| Crypto (as payment) | Income tax |
| Mining rewards | Self-employment income |
| Staking rewards | Other income |
Capital Gains Tax
| Threshold | Tax Rate |
|---|---|
| Gains under €2,000 (annual) | Tax-free |
| Gains over €2,000 | 26% |
Important: Monitoring Period
If you hold crypto for more than 12 months, gains are generally tax-free regardless of amount (subject to certain conditions).
What Counts as a Taxable Event
| Event | Taxable |
|---|---|
| Sell crypto for EUR | Yes |
| Crypto-to-crypto trade | Yes |
| Buy goods/services with crypto | Yes |
| Transfer between own wallets | No |
| Gift (to family) | Possibly (gift tax) |
| Inheritance | Yes (inheritance tax) |
Cost Basis
Italy uses the average cost method for calculating gains:
Gain = Sale value - (Average cost × amount sold)
You track the average purchase cost across all your holdings.
Tax-Free Threshold
The €2,000 annual threshold is per taxpayer. If your total realised gains across all crypto are under €2,000 in a tax year, you owe nothing.
Staking and DeFi
| Activity | Tax Treatment |
|---|---|
| Staking rewards | Taxable as other income (IRPEF progressive rates) |
| Airdrops | Taxable at market value when received |
| Lending | Interest is taxable income |
| Liquidity mining | Taxable as other income |
Mining
Mining is treated as self-employment income if it’s organised and regular. Casual mining may be treated as other income.
| Mining Type | Tax Treatment |
|---|---|
| Professional mining | Self-employment income + VAT |
| Hobby mining | Other income |
Reporting Requirements
| Requirement | Detail |
|---|---|
| Tax return (Modello Redditi) | Declare crypto holdings and gains |
| Quadro RW | Foreign asset reporting if crypto held abroad |
| Declaration threshold | Over €15,000 in value or €2,000 in gains |
Quadro RW
If you hold crypto on foreign exchanges (including Binance, Coinbase):
- Declare in Quadro RW
- Pay 0.4% IVAFE (wealth tax on foreign assets) on the value
- IVAFE applies if value exceeds €15,000
Wealth Tax (IVAFE)
A 0.4% tax applies to the value of crypto held on foreign platforms.
| Value | IVAFE Due |
|---|---|
| €10,000 | €0 (under threshold) |
| €20,000 | €80 |
| €50,000 | €200 |
| €100,000 | €400 |
Filing Deadlines
- Tax year runs 1 January to 31 December
- Return due by 30 November of the following year
- Keep records for at least 5 years
Bottom Line
Italy taxes crypto gains at 26% (over €2,000 annual threshold). Crypto-to-crypto trades are taxable. Holdings over €15,000 on foreign platforms must be declared in Quadro RW with a 0.4% wealth tax. Holding for 12+ months can make gains tax-free. Use a cost average method and keep careful records.