Italy has enacted significant fiscal changes targeting digital assets through its 2025 Budget Law. The legislation raises the capital gains tax on cryptocurrencies from 26% to 33%, effective January 1, 2026. Concurrently, lawmakers eliminated the annual €2,000 tax-free threshold starting in 2025, subjecting all realized gains to taxation regardless of size.
The final 33% rate represents a legislative compromise after early proposals suggested taxing crypto gains at 42%, aligning them with top marginal income brackets. Despite this reduction from initial plans, the new rate constitutes a 27% increase over previous levels. This staggered implementation ensures Italian holders face tighter fiscal constraints before the headline rate adjustment takes effect.
To mitigate future liabilities, the law introduces an optional 18% substitute tax allowing investors to step up their cost basis starting January 1, 2025. Long-term holders can utilize this mechanism to reset valuations now, potentially reducing exposure to the higher 33% rate upon eventual sale. Conversely, gains from staking, mining, or airdrops may face ordinary income tax rates reaching 43%.
This policy shift creates immediate financial consequences for retail investors who previously relied on the exemption threshold. Under the new regime, a €10,000 profit triggers a €3,300 tax bill compared to €2,080 previously, marking a 59% increase in liability. Italy’s move further fragments the European regulatory landscape, as the EU’s Markets in Crypto-Assets framework governs market structure but leaves taxation as a national prerogative.