In Italy, cryptocurrencies are legally defined as "virtual digital assets." The country maintains a regulated crypto landscape, established by a legal framework including the national implementation of the EU's Markets in Crypto-Assets (MiCAR) regulation via Legislative Decree No. 129, effective September 2024. This framework mandates authorization for Crypto-Asset Service Providers (CASPs) from the Bank of Italy and Consob, with broader oversight, including anti-money laundering, by these bodies and the Ministry of Economy and Finance. The Agenzia delle Entrate (ADE), Italy’s revenue agency, governs cryptocurrency taxation under the framework of Legislative Decree No. 129 (2024) and the EU MiCAR regulation. Individual investors face a flat 33% substitute tax on crypto gains and miscellaneous income, effective January 2026. This tax applies only to gains exceeding an annual threshold of €2,000. There is no distinction between short-term and long-term gains. Converting crypto to fiat is a taxable event, with gains above €2,000 taxed at 33%. Corporations engaged in crypto activities pay 24% IRES corporate tax plus an approximate 3.9% IRAP regional tax. Cryptocurrencies are exempt from Value Added Tax (VAT). Italian residents must annually report crypto holdings via Quadro RW and transactions with gains over €2,000 via Quadro RT. Staking rewards are taxed at 33% upon receipt (effective January 2026), with a 26% withholding tax if from an Italian company. Mining rewards are subject to progressive income tax (23-43%), with costs deductible if a business. Profits from DeFi (farming, pools, lending) are taxed at 33% on gains exceeding €2,000, each disposal is taxable. NFT creation income faces progressive tax (23-43%), trading gains are 33% if over €2,000. Crypto-to-crypto swaps between "same nature" assets are generally exempt, however, conversions to e-money tokens or "different nature" assets are taxable. Effective January 2026, the individual substitute tax rate on crypto gains and income increases from 26% to 33% per budget law adjustments. An option for an 18% substitute value tax on holdings is also being introduced.
Tax Rates
| Effective individual rate | 33 |
| Capital gains tax | 33% on gains exceeding €2,000 annual threshold |
| Income tax on crypto | 33% substitute tax on crypto income |
| Corporate tax | 24% IRES plus 3.9% IRAP regional tax |
| VAT | Exempt from VAT |
Activity Taxes
| Staking | 33% tax on rewards at receipt, 26% withholding if Italian source |
| Mining | 23-43% progressive income tax, costs deductible if business activity |
| DeFi | 33% on profits from farming, pools, lending, each disposal taxable |
| NFTs | 23-43% progressive on creation, 33% on trading gains over €2,000 |
Taxable Events
| Crypto → Fiat | Taxable conversion, gain taxed at 33% if exceeds ‚Ǩ2,000 |
| Crypto → Crypto | Same-nature swaps exempt, taxable to e-money or different assets |
Holding Period
| Holding period benefit | None, flat 33% rate applies regardless of holding duration |
Sources