Italy Crypto Tax Guide 2025

Italy has a comprehensive crypto tax framework requiring both capital gains reporting (Quadro RT) and wealth monitoring (Quadro RW). The Italian Revenue Agency (Agenzia delle Entrate) treats cryptocurrency as foreign currency for tax purposes, subjecting it to a 26% capital gains tax above a €2,000 threshold. Italy also requires annual wealth reporting and charges an IVAFE tax on foreign holdings.

Italy offers a €2,000 annual threshold for cryptocurrency capital gains. If your total crypto holdings never exceeded €51,645.69 for 7 consecutive days during the tax year, all gains are tax-free. If you exceed this threshold, gains are subject to 26% tax, but only gains above €2,000 are taxable. This creates a favorable environment for small-scale investors.

Cryptocurrency capital gains exceeding the €2,000 threshold are taxed at 26% (imposta sostitutiva). This is a flat rate regardless of holding period or total income. The 26% rate is the same as financial capital gains (stocks, bonds) in Italy. Gains are calculated per individual disposal, not aggregated annually.

Report cryptocurrency capital gains on Quadro RT (RT Section) of your annual tax return (Modello Redditi PF). You must declare: total sale proceeds, total acquisition costs, net gain, whether the €51,645.69 threshold was exceeded, and calculate tax due. RT21 is used for crypto specifically ("valute estere rivenienti da wallet"). Taxxy generates RT-compliant calculations automatically.

If you hold cryptocurrency on foreign exchanges or in non-custodial wallets, you MUST file Quadro RW (RW Section) even if you had no disposals. RW is a wealth monitoring form separate from capital gains. Declare the value of your holdings at year-end (December 31) and the maximum value during the year. RW filing is mandatory if you hold any foreign crypto assets.

In addition to capital gains tax, Italy charges IVAFE (Imposta sul Valore delle Attività Finanziarie all'Estero), a 0.2% annual tax on the value of foreign financial assets including cryptocurrency. This applies to your crypto holdings at year-end. IVAFE is payable even if you didn't sell any crypto. It's a wealth tax similar to Norway's formueskatt but at a lower rate.

Mining rewards and staking income are treated as miscellaneous income (redditi diversi) and subject to progressive income tax rates (23-43%) plus potentially regional and municipal taxes. This income is NOT eligible for the €2,000 threshold—it's taxed as ordinary income. Report on Quadro RL of your tax return. The EUR value when received becomes your cost basis.

Trading one cryptocurrency for another is a taxable disposal. You must calculate the gain or loss in EUR at the moment of trade. Each swap triggers a separate capital gains calculation. If the €51,645.69 threshold is exceeded, these gains count toward the €2,000 annual threshold.

Italy does not specifically mandate FIFO or average cost. The weighted average cost (costo medio ponderato) is commonly accepted and may be more favorable than FIFO for tax purposes. Taxxy can calculate using either FIFO or weighted average method. Choose one method and use it consistently for all cryptocurrencies.

Maintain comprehensive records for at least 7 years: transaction dates and times, EUR values at transaction time, exchange names, wallet addresses, daily crypto holdings (to prove €51,645.69 threshold), year-end balances for Quadro RW, maximum values during the year, and cost basis calculations. Agenzia delle Entrate increasingly audits crypto holdings.

Taxxy automatically generates Quadro RT capital gains calculations with €2,000 threshold application, produces Quadro RW wealth monitoring reports with year-end and maximum values, calculates IVAFE tax (0.2% on holdings), tracks the €51,645.69 daily threshold compliance, provides EUR valuations using ECB historical rates, and creates audit-ready documentation for Agenzia delle Entrate.