Bitpanda’s Guide to Crypto Taxes in Italy

Tax season in Italy isn’t simply about bank statements and payslips anymore. If you’re into crypto, you’ve got extra boxes to tick. With clear rules now in place, gains from Bitcoin (BTC), Ethereum (ETH) or your favourite meme coin now mean tax liabilities. And it’s not just sales that matter: even if you didn’t trade, you might need to report your holdings.

In this guide, we’ll walk you through everything you need to know, from what’s taxable to which forms you’ll need, so you can stay compliant, avoid penalties and maybe even save some money along the way.

Do you pay tax on crypto in Italy?

For years, Italy lacked a clear legal framework for crypto taxation. Crypto was often treated as “foreign currency” in legal grey zones, which meant that many investors didn’t pay taxes unless their holdings exceeded certain thresholds or if the assets were stored abroad. This vague and murky structure led to inconsistent interpretations and left a lot of people unsure about their obligations.

However, that changed with the 2023 Budget Law, which recognised cryptocurrency as a financial asset. The law clarified that profits from selling crypto count as miscellaneous income for tax purposes.

Right now, capital gains from crypto are taxed at 26%. This applies when you:

• sell crypto for fiat,
• swap one coin for another or
• use crypto to make a purchase.

Since 1 January 2025, the long-standing €2,000 exemption no longer applies. Previously, only annual gains above that threshold were taxable. Now, all gains from crypto are taxable, regardless of the amount. On top of that, if you hold crypto abroad, you’re required to report it, even if you haven’t sold anything.

Some activities, however, remain tax-free. This includes transferring crypto between your own wallets and buying crypto with euros. Swapping crypto, including stablecoins, may be taxable depending on classification, so it’s best to keep records and check with a tax adviser.

There are now two tax options available:

• pay 26% on your realised gains, or
• opt for a 14% substitute tax (imposta sostitutiva) on the total value of your crypto portfolio as of January 1, 2025 (as per Legge di Bilancio 2023, art. 1, comma 133)

Beyond capital gains, there are a couple of other taxes that crypto investors in Italy should be aware of. Beyond capital gains, there are a couple of other taxes that crypto investors in Italy should be aware of. If your crypto is with an Italian intermediary acting as a sostituto d’imposta, a 0.2% imposta di bollo (stamp duty) may be automatically applied. But if you hold your crypto abroad or in self-custody (like on a hardware wallet), you’ll need to pay the IVAFE instead, a 0.2% wealth tax based on the higher of your portfolio’s value at year-end or its peak value during the year. IVAFE must be reported in Quadro RW and paid manually using the F24 form.

And if you’re planning to move to Italy (or just did), here’s some important tax news, especially if you’ve got substantial foreign income or crypto gains: the country offers a special flat tax regime for new residents. This allows you to pay a flat €200,000 per year on foreign income – plus an extra €25,000 per family member. However, eligibility requires that you haven’t been a tax resident in Italy for at least 9 of the past 10 years.

What’s coming in 2026?

Looking ahead, from January 1, 2026, the capital gains tax rate will increase to 33%, as outlined in Italy’s 2025 budget law.

This marks a shift towards stricter oversight and aligns with broader moves in the EU, especially with the upcoming DAC8 directive, which will unify crypto tax reporting across member states.

So, if you’re sitting on gains, big or small, it’s time to take crypto taxes seriously. The sooner you organise your reporting, the better prepared you’ll be as the rules tighten. To help you with that, Bitpanda has once again teamed up with Blockpit: together, we make crypto tax reporting smarter, faster and easier – and as a Bitpanda user, you’ll get a 10% discount on your first paid Blockpit tax licence of the year. Check the details here.

How to calculate your crypto gains

Before you can file your tax return, you need to figure out exactly how much you gained (or lost) from your crypto activity. This means understanding a few basic terms and how they work together to calculate your capital gains.

The key components:

• Cost basis: This is how much you paid to buy the crypto, including any fees or charges at the time of purchase.
• Disposal value: This is what you received when you sold, swapped or spent the crypto, measured in euros at the time of the transaction.
• Capital gain or loss: This is the difference between the disposal value and your original cost basis.

The Formula: 

Let’s say you bought 1 ETH for €2,300 and later sold it for €3,000. Your capital gain is €700.

If you’ve made multiple crypto purchases over time, the Italian tax law requires the FIFO method (First In, First Out). This means the first crypto you buy is the first one considered sold when calculating gains. This can affect your reported gains, especially in a volatile market where prices change quickly.

Here’s how it works in practice:

Let’s say you buy 1 ETH for €2,000 in March and another 1 ETH for €2,500 in June. Then, in September, you sell 1 ETH for €2,800.

Since Italy applies the FIFO method (First In, First Out), the ETH you bought in March is considered sold first. So your capital gain is based on the €2,000 purchase, making the gain €800.

What if you choose the Alternative Portfolio Tax?

If you opt for the Alternative Portfolio Tax, your calculation works differently: You pay 14% on the total value of your crypto holdings as of January 1 of the tax year. This avoids the transaction-by-transaction tracking but doesn’t allow you to offset any capital losses.

Keep in mind: You can pay the full amount by June 30 or spread it over three equal annual instalments starting on that date, with a 3% annual interest applied to the remaining balance after the first payment.

What about crypto losses?

Not every crypto trade ends in a gain, and when you take a loss, you might be able to use it to your advantage. Under Italian tax law, trading losses can be offset against gains, helping to reduce your overall tax bill. Even better, you can carry forward unused losses for up to five years, which can come in handy in future tax periods.

Losses from scams, hacks or lost access remain a grey area, as Italy’s tax authority hasn’t confirmed if they count as capital losses. If you are affected, reporting the incident to authorities is essential.

How to file your crypto tax return in Italy

Once you’ve calculated your gains and gathered your data, it’s time to file. To get your crypto taxes right, you'll need a few key pieces of information for your report:

• dates of all your transactions,
• the cryptocurrencies involved,
• type of each transaction (buy, sell, swap, etc.),
• amounts and values in euros,
• gain or loss from each transaction.

If you’re using Bitpanda, collecting this data is simple. Our platform gives you a clear overview of your activity, and when it’s time to prepare your tax return, you can connect via API to Blockpit to generate a fully compliant report tailored to Italian regulations.

Blockpit’s tax reports are a paid service, but as a Bitpanda user, you’ll receive a 10% discount on your first licence of the year. It covers all your deposits, which is perfect if you trade across multiple platforms.

Want to see how it works? Watch our tutorial to learn how to create your tax report via Bitpanda using Blockpit:

Which tax form do you need?

Depending on your situation, you’ll use one of two forms:

• Modello 730: Best suited for individuals with employment income, deductions or credits to claim, but not for those with complex income or foreign-held crypto.
• Modello Redditi PF: For those reporting capital gains, crypto transactions or foreign assets. This is the go-to for most crypto investors.

Inside the Modello Redditi PF, there are two key sections for crypto:

• Form RT: to report capital gains from selling or trading crypto
• Form RW: to report any foreign-held crypto or other offshore assets

Both forms can be filed online via Agenzia delle Entrate, through a CAF (tax assistance centre) or with the help of a licensed tax professional.

Deadlines to know

The tax year in Italy runs from January 1 to December 31, and filing deadlines depend on the form you’re using:

• By June 30: If you opt for the 14% substitute tax, make sure to pay it in full or start your first of three yearly instalments. A quick note: A 3% interest applies to the remaining payments.
• By September 30: This is the deadline to submit the Modello 730 form – ideal if you’re an employee or have simple tax needs.
• By October 31: Last chance to file the Modello Redditi PF, the go-to form for reporting crypto gains and foreign holdings via Form RT and Form RW.

How to optimise your crypto taxes

Tax rules may be tightening, but there are still smart ways to reduce what you owe. Here are a few legal strategies to consider:

• Hold your crypto: If you don’t sell, there’s no capital gains tax to pay. It's as simple as that.
• Use your losses: Trading losses can offset your gains and be carried forward for up to five years.
• Consider the 14% substitution tax: Especially if your portfolio has grown, this can be a more efficient way to report your holdings and avoid the complexity of tracking every trade.

Other crypto taxes to consider

Not all crypto earnings come from selling, and in some cases, they may be taxed as personal income. While official guidance is limited, most experts agree that rewards from staking or lending are likely to be treated as income, much like in other countries. If that’s the case, your tax rate will depend on your income bracket, ranging from 23% to 43%.

There are no dedicated rules for mining either, but if it’s considered a business activity, corporate income tax may apply. DeFi protocols remain a legal grey area, and given their complexity, it’s best to consult a crypto-savvy tax advisor for personalised advice.

Final thoughts

Crypto taxes in Italy can be a lot to wrap your head around, but with the right support, it gets a whole lot easier. Whether you’re sorting through gains, reporting your holdings or just trying to stay ahead of upcoming changes, a bit of planning goes a long way.

With Bitpanda and Blockpit by your side, you’ve got the tools to make tax season a little less stressful and a lot more manageable.

Disclaimer

This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets.

This article is for general purposes of information only and no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this article or opinions contained herein. \Bitpanda Stocks are contracts replicating an underlying stock or ETF. More information and the PRIIPs key information document (KID) are available at bitpanda.com.*