1. Tax Rate: How much will I pay?
In Italy, gains are subject to a flat-rate substitute tax (imposta sostitutiva). The rate varies based on the year your profits were realized:
Gains realized in 2025 (declared in 2026): The rate remains fixed at 26%.
Gains realized starting January 1, 2026 (declared in 2027): The rate officially increases to 33% for most cryptocurrencies (following the 2025 Budget Law). Note that a 26% rate may still apply specifically to Euro-pegged stablecoins (EMT).
Application: This tax applies to the net capital gain (selling price - purchase price) when cashing out to fiat (Euro, USD, etc.) or purchasing goods and services.
2. Exemption Thresholds
Italy uses a threshold below which gains are not taxed. This threshold is currently being phased out:
Tax Years 2024 and 2025: An exemption threshold of €2,000 per year applies. If your total annual gains are below this amount, no tax is due on capital gains.
Tax Year 2026 (onward): This threshold is completely removed. All gains will be taxable from the first euro of profit at the new 33% rate.
3. Passive Income (Staking, Lending, Airdrops)
To simplify the management of these incomes, a zero acquisition cost approach is used:
Upon Receipt: Tokens received for free (staking rewards, farming, airdrops) enter your portfolio with an acquisition price of €0. No tax is paid at the moment you receive the tokens.
Upon Sale: Taxation occurs only when these tokens are sold or exchanged in a taxable event.
Gain Calculation: The gain is equal to the total selling price (Selling Price - €0).
Example: You receive an airdrop worth €500. it enters your holdings at €0. Later, you sell it for €800. Your taxable gain is €800.
4. Holding Tax (IVCA & Quadro RW)
Regardless of whether you sell, you have obligations related to simply holding assets:
IVCA Tax: An annual wealth tax of 0.2% is due on the total value of your portfolio as of December 31.
Quadro RW: All assets held on foreign platforms or cold wallets must be reported in the Quadro RW section of your tax return