If you’re a tax resident in Italy and hold cryptocurrency, you may owe a small wealth tax—along with other crypto-related taxes. See how Italy taxes crypto and what changes are coming in 2026.
Annual wealth tax (IVAFE)
Italy applies a 0.2% annual wealth tax—called IVAFE—to crypto assets held:
- On foreign exchanges (like Kraken or Coinbase)
- In self-custody wallets (like Ledger or MetaMask)
This tax is based on the market value of your crypto holdings as of 31 December. You must declare these assets on your annual tax return, the Modello Redditi Persone Fisiche (PF), in the Quadro RW section. The Modello Redditi PF is due by 31 October.
If you hold crypto with an Italy-based exchange or custodian, a 0.2% stamp duty usually applies instead. The exchange or custodian automatically withholds this amount. You may qualify to file a simplified return, Modello 730, and report your capital gains on Quadro T, which is due on 30 September.
Italian crypto taxes
| Tax type |
2025 filing (2024 income) |
2026 filing (2025 income) |
Details |
| Wealth tax (IVAFE) | 0.2% | 0.2% | Applies yearly to crypto held abroad or in self-custody |
| Stamp duty | 0.2% | 0.2% | Applies yearly to crypto held with an Italian exchange |
| Capital gains tax | 26% | 33% | Applies to capital gains from selling or spending crypto |
| Capital gains exemption | € 2.000 | N/A | Gains below this threshold are tax-free. This allowance will no longer apply to income in 2025 (reported in 2026) |
| Step-up substitute tax | 14% | 18% | Optional substitute tax on the overall value of your crypto as of 1 January; must be paid by 30 November |
| Income from mining/staking | 23%–43% | 23%–43% | Taxed as personal income at progressive IRPEF rates |
Definitions
| IVAFE | "Imposta sul Valore delle Attività Finanziarie detenute all'Estero," which means “Tax on the Value of Financial Assets Held Abroad.” |
| IRPEF | “Imposta sul Reddito delle Persone Fisiche,” which means “Personal Income Tax.” |
For information on which transactions are taxed, please see our article on tax treatment by transaction category.
Note: This article is for informational purposes only and doesn’t constitute tax advice. Please consult a qualified tax professional for guidance on your specific situation.