Is Crypto Income Taxable in Italy 2025? Your Complete Tax Guide

As cryptocurrency adoption grows in Italy, understanding tax obligations becomes crucial for investors. Heading into 2025, Italy maintains clear (though evolving) crypto tax rules. This guide breaks down how the Italian Revenue Agency (Agenzia delle Entrate) treats cryptocurrency income, compliance requirements, and strategies to stay penalty-free.

Italy’s Crypto Tax Framework for 2025

Italy classifies cryptocurrencies as “foreign currencies” under Legislative Decree 149/2022. For 2025, these key principles apply:

• Taxation triggers on disposal events (selling, trading, spending)
• No wealth tax on holdings, only on realized gains
• Professional traders face different rules than casual investors
• Regulations may evolve – monitor official Agenzia delle Entrate updates

Types of Crypto Income and Tax Treatment

Different crypto activities incur distinct tax obligations:

Capital Gains

• Rate: Flat 26% on profits
• Calculation: (Selling Price – Purchase Price) – Transaction Fees
• Exemption: Gains under €2,000/year are tax-free (per individual)

Mining & Staking Rewards

• Treated as miscellaneous income
• Taxed at personal income tax rates (IRPEF) up to 43%
• Value determined at receipt based on market prices

Other Taxable Events

• Crypto-to-crypto trades: Taxable as disposal of original asset
• NFT sales: 26% capital gains tax applies
• Airdrops/hard forks: Taxable as income at market value upon receipt

Compliance Requirements for 2025

Avoid penalties by meeting these obligations:

1. Annual Tax Return (Modello Redditi PF): Report all taxable crypto events
2. RW Annex: Declare foreign exchange holdings exceeding €15,000 at year-end
3. Record Keeping: Maintain transaction logs for 10+ years including:
   • Dates and transaction types
   • Amounts in crypto and EUR equivalent
   • Wallet/exchange addresses

Penalties for Non-Compliance

Failure to comply risks severe consequences:

• Underreporting: 100-200% of evaded tax + interest
• Late filing: €250-€1,000 fixed penalties
• Criminal charges: For evasion exceeding €50,000 over 3 years

Tax Calculation Example

Scenario: Buying 1 BTC for €25,000, selling for €40,000 in 2025:

1. Profit = €40,000 – €25,000 = €15,000
2. Taxable gain = €15,000 – €2,000 exemption = €13,000
3. Tax due = €13,000 × 26% = €3,380

FAQs: Crypto Taxes in Italy 2025

Are crypto-to-crypto trades taxable?

Yes. Trading BTC for ETH is considered a disposal of BTC, triggering capital gains tax on any profit.

Do I pay tax on lost or stolen crypto?

Documented losses can offset capital gains. Report theft to authorities and maintain evidence.

How are DeFi yields taxed?

Lending rewards and liquidity mining proceeds are taxed as miscellaneous income at IRPEF rates.

Is there a tax on crypto gifts?

Gifts to family members may qualify for €1M lifetime exemption. Non-family recipients pay 4-8% gift tax.

Can I deduct crypto transaction fees?

Yes. Exchange and network fees reduce taxable gains when calculating profits.

Where do I report crypto taxes?

Capital gains in RT section of Modello Redditi PF. Mining/staking in RM section.

Will regulations change before 2025?

Possible. Monitor the Agenzia delle Entrate website and EU’s MiCA framework implementation.

Disclaimer: This guide reflects regulations current as of 2023. Consult a commercialista (Italian tax professional) for personalized advice as rules evolve toward 2025.