Italy has completely reshaped how cryptocurrency is taxed over the past two years. If you hold digital assets and live in Italy - or you're planning to relocate here - the rules that applied when you first looked into this are almost certainly out of date. Here's what the picture looks like in 2026.

The new 33% rate

Italy has made some changes to how it taxes crypto assets. Starting from January 1, 2026, people will have to pay a 33% tax on any gains they make from selling these assets. This is a big jump from the 26% tax that was in place until the end of 2025.

The new tax rate applies to all kinds of crypto assets, including Bitcoin, Ethereum, and other altcoins, as well as NFTs and stablecoins like USDT and USDC. This change was made as part of Italy's 2025 Budget Law and was confirmed in the 2026 Budget Law. It's worth noting that this new tax rate is a flat rate, which means it's the same for everyone, regardless of how much they earn from their crypto assets.

No more €2,000 exemption

Up until 2024, people who invested small amounts of money had a bit of a safety net - they only had to pay taxes on the amount they made above €2,000 per year. But that all changed on January 1, 2025, when the rules were updated and that allowance was taken away.

Now, every single euro that's made from investing is subject to taxes, no matter how small the profit is. So, if someone makes just €100 from an investment, they'll still have to report it and pay taxes on it - there's no more "tax-free" zone for small gains.

The exception: euro stablecoins

The new budget law for 2026 has a special exception that's really good news. It's about something called e-money tokens, which are like special kinds of money that are tied to the euro. These tokens, also known as stablecoins, have their value fixed to the euro and are backed by assets that are also in euros, which are held by companies that the EU says are okay. Because of this, they get a lower tax rate of 26% instead of the usual 33%.

But here's the best part: if you change your euros into these tokens or change them back into euros, it's not considered a taxable event. The law sees it like you're just holding your money in a different way, so you won't have to pay taxes on it.

Which operations actually trigger tax

When it comes to crypto transactions, many investors mistakenly assume that every move they make will trigger a tax bill. However, according to the guidelines set out by the Italian Revenue Agency, this isn't always the case. For instance, swapping one crypto asset for another that has the same characteristics and functions - think Bitcoin for Ethereum, or trading one NFT for another - isn't considered a taxable event.

On the other hand, converting your crypto into euros or any other traditional currency, using it to buy goods or services, or purchasing an NFT with a virtual currency will indeed trigger taxation. In essence, moving between comparable crypto assets is a neutral move, but cashing out or spending your crypto is a different story altogether. When you do make a tax-free swap, the cost basis of the new asset you've acquired is simply carried over from the one you gave up.

Staking and similar income

When you get income from crypto, like staking rewards, it's considered miscellaneous income and you have to pay taxes on the whole amount you receive. You can't deduct anything from it. Even if the platform takes a fee before putting the rewards in your account, you still have to pay taxes on the original amount, not on what you actually get to keep.

Document everything, or pay tax on everything

When it comes to crypto, there's one rule you really need to pay attention to: you have to be able to prove how much you paid for it with solid documentation. If you can't show what you paid, the law says your cost is zero, which means you'll be taxed on the whole amount you get when you sell, not just the profit you made.

So, keeping track of your wallets, exchange statements, the dates you bought crypto, and receipts for transactions is really important - it's not just about following the rules, it can actually cut your tax bill in half.

Losses can work in your favor

When you sell crypto and lose money, don't think it's all gone to waste. You can use those losses to offset gains you make on crypto in the future, for up to four years. And with the tax rate at 33% now, keeping track of your losses and documenting them properly is really important for planning your taxes. It's a valuable tool to help you save money on taxes.

Don't forget the wealth-type taxes

If you have crypto assets, you'll need to pay a tax on them. There are two types of taxes that might apply, depending on how and where you hold your assets. One is a stamp duty, which is like a fee charged when you buy or sell something. The other is a tax on the value of your crypto assets, similar to a tax called IVAFE in Italy. Both of these taxes are charged at a rate of 0.2% per year.

If you hold your crypto assets through an Italian company, you'll likely pay the stamp duty. But if you hold them on foreign platforms or in self-custody wallets, like on your computer or phone, you'll pay the value tax instead. The good news is that if you've already paid a similar tax on these assets in another country, you might be able to get a credit for that. This means you won't have to pay the same tax twice.

What this means if you're moving to Italy

Italy's crypto tax rules are getting tougher, and it's likely to get even more strict. The European Union is working on a system to automatically share data between crypto exchanges and tax authorities. If you're moving to Italy with a big crypto portfolio, the timing of your move and how you report your holdings can make a big difference in how much tax you pay. When you sell your crypto, or "realize" your gains, can also impact your tax bill. So, it's really important to get your documentation and declarations in order to minimize your tax liability.

Planning to move to Italy can be a bit overwhelming, especially when it comes to understanding the rules and regulations. At Move To Dolce Vita, we're here to help international investors and crypto holders like you make a smooth transition. We'll guide you through the process of declaring your assets and structuring your investments in a way that works best for you. Our team is dedicated to providing personalized advice and support every step of the way. Why not book a consultation with us today and get the answers you need before making your move? We're looking forward to helping you start your new life in Italy.

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