Crypto Taxes in Italy: Investor Guide

How Does Italy Tax Cryptocurrency?

Italy treats cryptocurrencies like financial assets, which means they fall under capital gains rules, similar to how stocks are taxed. This treatment applies to private individuals who invest on their own behalf, not to businesses (which may be taxed differently).

Until recently, small investors could avoid taxes if their crypto portfolio stayed below a certain value (€51,645.69 for 7+ consecutive days). That rule was eliminated in 2023. Now, all capital gains on crypto are taxable, even if you make just €100 in profit.

This change simplifies the law, but it also means more people are affected. Whether you're cashing out your bitcoin or swapping tokens, you’ll likely need to account for the tax implications.

What About Holding Crypto?

Simply holding crypto isn’t a taxable event. You only owe taxes when you sell, trade, or earn income. However, Italy still requires you to declare your holdings on the RW section of your tax return if you use foreign wallets or exchanges. That includes Gemini and other non-Italian platforms.

When Do You Owe Taxes on Crypto?

Understanding taxable events helps you avoid surprises. In Italy, taxes apply when your crypto activity generates income or realizes a gain, even if you didn’t convert to fiat.

Here are the situations where you’ll likely owe taxes:

Selling Crypto

This is the most straightforward. If you bought bitcoin at €20,000 and sold at €28,000, the €8,000 gain is taxable.

Trading One Cryptocurrency for Another

Swapping ETH for SOL? It’s still considered a disposal of ETH at its market value, which could mean a capital gain.

Spending Crypto

Buying goods or services using crypto also counts as a taxable transaction. You’ll be taxed on the difference between the purchase price and the market value when spent.

Staking, Mining, or Yield Farming

Any income received via rewards or interest is taxed at 26%, even though you may not convert it.

Airdrops and Hard Forks

If you receive free cryptocurrency through an airdrop or as part of a blockchain event, it will likely be taxed once you sell it based on its market value.

Even if you're only dabbling in crypto, it's worth tracking all of these transactions, because they can add up fast over a year.

How Much Tax Do You Pay on Crypto Gains?

Currently, Italy taxes most crypto gains and income at a flat rate of 26%. This applies to private investors who don’t qualify as businesses.

That said, recent legislation has introduced new options and upcoming changes:

• In 2023 and 2024, Italy applied a flat 26% tax on crypto-related gains and income, including capital gains over €2,000, staking rewards, and crypto-to-crypto swaps.

• Starting January 1, 2026, this rate will increase to 33%, per the country’s updated budget law.

• Some investors may opt for a substitute tax — a percentage (14% to 18%) paid on the overall value of your portfolio on January 1, instead of paying tax on realized gains. This can be favorable in some cases, especially for long-term holders.

If you earn crypto through business activities or self-employment (like regular mining), income tax brackets (23% to 43%) could apply instead.

It’s always a good idea to consult a tax advisor to see which classification fits your situation best.

How To Report Crypto on Your Italian Tax Return

Reporting crypto in Italy requires filling out specific forms during tax season, especially if you use non-Italian wallets or exchanges.

Here’s how it works:

• Quadro RW: This is where you report foreign-held financial assets. If your crypto is stored on exchanges like Gemini, you’re required to disclose the wallet balance here, even if you didn’t trade.

• Quadro RT: This form is used to declare capital gains and pay the 26% flat tax or substitute tax.

What Records Should You Keep?

For every transaction, you should track:

• The date of purchase and sale

• The amount of crypto involved

• The purchase and sale price in EUR

• Fees and commissions paid

• Type of transaction (sale, swap, income, etc.)

Gemini users can download detailed transaction histories directly from the platform, which helps a lot when preparing your taxes or working with a commercialista.

What Happens If You Don’t Report Crypto Taxes?

Avoiding crypto taxes in Italy can lead to penalties totaling 3% to 15% of the undeclared amount, plus a fixed fine of €258 for late filing. Enforcement has become stricter, with exchange reporting, DAC8, and blockchain forensics actively tracking crypto activity.

If you’re using foreign exchanges like Gemini, reporting obligations are even stricter, meaning Form RW becomes essential for compliance. It’s far safer and easier to declare your assets and pay what’s due.

How To Stay Compliant With Crypto Taxes

Manually doing crypto taxes will require a lot of time. However, some tools make the process easier:

• Crypto tax software: Blockpit, Koinly, or CoinTracking will enable you to load your transactions, calculate gains, and create reports in an acceptable form for Italian tax forms.

• Tax professionals: An Italian accountant (commercialista) who is knowledgeable about can assist in minimizing any mistakes and achieving maximum compliance.

• Gemini’s reporting features:  As a user, you can access the detailed history of your trades and export your data to a CSV file, making it perfect for tax prep.

Being proactive with your records saves you time, stress, and potentially money at the end of the year.

Wrapping Up

Crypto taxation in Italy is now clearer and more comprehensive than ever. Eliminating the thresholds, fixed tax rates, and raising the number of required reports means investors need to stay informed to avoid falling out of compliance.

Whether you trade weekly or hold long-term, take the time to keep track of your transactions, declare your assets, and fill out the proper forms. The right platform and tools can make this process significantly easier.

Looking for a secure, transparent way to buy, sell, and track your crypto? 

and take control of your digital assets, with tools that make tax season a breeze.

FAQs

Is crypto legal and taxable in Italy?

Yes. Crypto is legal in Italy and taxed similarly to traditional financial assets. Capital gains and crypto income are both subject to taxation.

Do I owe tax if I just hold crypto?

No tax is owed for holding crypto, but you must report it on if stored on foreign platforms.

Are NFTs and airdrops taxed?

Yes. Airdrops are taxable upon disposal, and NFTs are treated as other crypto assets, where gains are taxed when sold.