Cryptocurrency tax return Italy 2026: complete guide

Declaring cryptocurrencies in Italy in 2026 applies to all individual taxpayers who held, moved or disposed of crypto-assets during the 2025 tax year. The Italian tax system draws a clear distinction between tax monitoring (a snapshot of asset ownership) and taxation of realized income (capital gains and financial proceeds). With the changes introduced by the Budget Law and the clarifications in Circolare n. 30/E/2023 of the Italian Revenue Agency (Agenzia delle Entrate), the tax management of digital assets requires a straightforward method: gather the full transaction history, distinguish the types of transactions and fill in the correct schedules in the Modello Redditi Persone Fisiche or the Modello 730.

Map of obligations: tax monitoring and income tax

Tax obligations for cryptocurrency holders are structured on two independent and complementary levels:

1. Tax monitoring obligation (Quadro RW or Quadro W of the 730): used to declare assets held abroad, on non-resident exchanges or on non-custodial wallets (private keys, hardware wallets). The obligation arises from mere possession, even without any sale, and also serves to settle the tax on the value of crypto-assets (commonly called IVCA, equal to 0.2% per year).
2. Income reporting obligation (Quadro RT or Quadro T of the 730): arises when a taxable event occurs, such as a sale into fiat currency (euro, dollars), the purchase of goods and services, or the receipt of proceeds from staking and similar activities. In this schedule, capital gains are settled or capital losses are certified.

These two obligations are independent: it is common to have to complete the monitoring form even with zero sales, just as it can happen that capital gains must be declared even after every position was closed before year-end.

How to choose between Modello Redditi PF and Modello 730?

Individual taxpayers resident in Italy can fulfil their filing obligations by choosing the channel best suited to their employment and social-security situation.

Modello 730: Quadro W and Quadro T

For employees and pensioners, filing via the Modello 730 is available:

• Quadro W: holds the tax-monitoring data and the settlement of the tax on the value of crypto-assets (IVCA), performing the same function as Quadro RW.
• Quadro T: hosts miscellaneous income of a financial nature, including the section dedicated to capital gains and losses from crypto-assets (equivalent to Sezione V-A of Quadro RT).

The main advantage of the Modello 730 is the direct handling of the adjustment (debit or credit) on the payslip or pension instalment through the withholding agent.

Modello Redditi Persone Fisiche: Quadro RW and Quadro RT

It remains always possible or necessary to use the Modello Redditi PF in the following cases:

• Holders of a VAT number or persons not eligible to file the 730.
• Taxpayers who file the basic 730 but choose to submit the additional packs (Fascicolo 2 for RW and RT) through the Agenzia delle Entrate electronic channels.
• Situations involving complex cases or income schedules not handled by the withholding agent's software.

Tax treatment of the most common crypto transactions

In the Web3 world and decentralized finance, transactions take forms that differ from traditional finance. The Agenzia delle Entrate, in Circolare n. 30/E/2023, defined the treatment for the main operational scenarios.

Exchange between cryptocurrencies (crypto-to-crypto swaps)

The exchange between crypto-assets that have the same characteristics and economic functions (for example swapping Bitcoin for Ethereum on an exchange or a DEX) does not constitute realization of a taxable capital gain. In this transaction, the original purchase cost of the disposed lot is automatically transferred to the new units received in exchange. Realization instead occurs when the cryptocurrency is converted into fiat currency, used to purchase goods or services, or exchanged for tokens with a different legal or economic nature.

How are staking and yield farming taxed?

Proceeds received as rewards for validating transactions on Proof of Stake networks (staking) or for providing liquidity in decentralized protocols constitute taxable income:

• Rewards credited to the wallet are subject to tax at the time of receipt based on their normal value in euro on the date of receipt.
• That euro equivalent then becomes the tax cost basis of the new token, relevant for calculating any future capital gain on a subsequent sale.

Airdrops and promotional rewards

Tokens received free of charge through promotional or retroactive airdrop campaigns follow precise rules:

• Where the airdrop is not linked to any work activity or onerous performance, the tokens usually take an initial cost basis of zero.
• Upon subsequent disposal or conversion for consideration, the entire proceeds obtained will constitute a taxable capital gain.

DeFi protocols, liquidity and loans

Interactions with smart contracts on Decentralized Finance (DeFi) platforms — such as lending, borrowing, token wrapping (e.g. ETH into WETH) and liquidity pools — require careful accounting reconciliation:

• Mere wrapping or depositing as collateral without loss of ownership does not constitute a taxable disposal.
• Interest earned on lending platforms is taxed at the time of withdrawal or actual crediting.
• All positions held on smart contracts or foreign non-custodial wallets must be included in the year-end holdings for monitoring purposes in Quadro RW / W.

How is the capital gain calculated?

The taxable base for the substitute tax is calculated by subtracting the documented purchase cost or value from the consideration received:

Article 68, paragraph 9-bis of the TUIR provides that the taxpayer must prove the purchase cost through suitable documentation (exchange purchase receipts, bank transfers, certified on-chain transactions). If the purchase cost cannot be documented, by law the cost is deemed zero, and tax is applied on the entire amount received.

Numerical calculation example

To understand the calculation mechanics in concrete terms:

1. Purchase: On 15 March 2025, 2 ETH are purchased at a total price of €4,000 (unit cost €2,000, fully documented by bank transfer and the exchange statement).
2. Sale: On 10 November 2025, 1 ETH is sold for consideration of €3,200.
3. Determination of the result:
   • Consideration received: €3,200
   • Purchase cost of the lot (1 ETH): €2,000
   • Capital gain realized: €3,200 − €2,000 = €1,200
4. Settlement of the substitute tax (26% rate for 2025 realizations):
   • Tax due: €1,200 × 26% = €312

If the sale had generated an amount lower than the cost (for example a disposal at €1,500 against a €2,000 cost), a capital loss of €500 would have been recorded. Capital losses certified in Quadro RT or Quadro T can be offset against capital gains of the same nature realized in the same year or in the following 4 tax periods.

Rate framework and exemption-threshold timeline in 2026

Correct taxation depends on the exact date on which the economic realization of the transaction occurred.

Summary table: regulatory evolution 2024–2026

The following table summarizes the full picture of rates, the exemption threshold and filing obligations for each tax year:

Applicable rates: 26% vs 33%

• Transactions realized by 31 December 2025 (2026 return): The ordinary rate of 26% applies in Sezione V-A of Quadro RT or in Quadro T of the 730.
• Transactions realized from 1 January 2026 onwards (2027 return): The new rate of 33% introduced by art. 1, paragraph 24 of Legge n. 207/2024 applies.
• E-money tokens (EMT) in euro: Capital gains realized on electronic-money tokens denominated in euro (euro stablecoins regulated under the European regulatory framework) retain the preferential 26% rate even for subsequent transactions, by virtue of their functional equivalence to legal tender (art. 1, paragraph 28 of Legge n. 199/2025).

Abolition of the €2,000 exemption threshold from 2025

The historic annual exemption threshold of €2,000 for aggregate capital gains was formally repealed by the legislator with effect from 1 January 2025 (art. 1, paragraph 25 of Legge 30 December 2024, n. 207). The Agenzia delle Entrate instructions for Modello Redditi / Infoprecompilata Quadro RT confirm this timeline: for realizations effected by 31 December 2024 the exemption threshold applied, whereas for realizations from 1 January 2025 onwards capital gains are included without any amount limit. Therefore, in the 2026 return for tax year 2025, no exemption threshold remains: every euro of net capital gain realized is taxable from the very first cent.

Asset monitoring and calculation of the IVCA (Quadro RW / Quadro W)

The monitoring obligation applies to all crypto-assets held outside the banking or financial system resident in Italy. For each wallet or foreign account you must indicate:

• The identification code of the asset (crypto-asset).
• The value at the start of the holding period (or at the time of purchase).
• The value as at 31 December (or at the time of full disposal).
• The number of days of holding during the calendar year.

The IVCA (Imposta sul Valore delle Cripto-Attività) is a wealth tax introduced by the 2023 Budget Law (Legge n. 197/2022) on holders resident in Italy, corresponding to the stamp duty on financial deposits. It is set at 0.2% per year (2 per thousand) of the value held.

The taxable base of the IVCA is the market value as at 31 December as reported on exchange platforms or reference listings. If the final market value cannot be objectively determined, the taxable base equals the documented purchase cost. It is settled directly within Quadro RW or Quadro W.

The European context: the DAC8 directive and tax cooperation

The framework for tax transparency on crypto-assets is also evolving at EU level with the DAC8 directive (Direttiva UE 2023/2226), which implements the OECD standards on the Crypto-Asset Reporting Framework (CARF). As clarified by the Agenzia delle Entrate in Circolare n. 30/E (§1.2), the framework establishes a mechanism of administrative cooperation and automatic exchange of information among EU Member States. The first data reports by crypto-asset service providers (CASP) will cover transactions carried out from 1 January 2026, with the first automatic exchange of information between tax authorities expected by the end of September 2027. The directive does not introduce a new tax on the taxpayer nor does it replace the monitoring obligation in Quadro RW or Quadro W, but it confirms the European authorities' move toward structured information cooperation. For holders of digital assets resident in Italy, this scenario makes it even more essential to maintain orderly and continuous tax records, preserving documentary evidence of historical costs, on-chain transfers and asset holdings.

Step-by-step guide: the operational sequence for filing

To complete the return without errors, it is advisable to follow a methodical path in six sequential steps:

1. Account reconciliation: Download complete account statements in CSV or report format from every exchange (Binance, Kraken, Coinbase, etc.) and track all transfers to private wallets (Ledger, MetaMask, Trust Wallet) and DeFi contracts.
2. Flow identification: Separate mere internal transfers (between wallets you own, not relevant) from sales into fiat, staking rewards and relevant conversions.
3. Calculation of the net capital gain: For each sale, compare the consideration obtained with the documented historical cost, keeping track of offsettable capital losses.
4. Calculation of holdings as at 31 December: Determine the euro equivalent as at 31 December of all assets still held for the determination of the value tax (IVCA).
5. Completion of the return form:
   • Enter the asset data and the IVCA in Quadro RW (Modello Redditi PF) or Quadro W (Modello 730).
   • Enter the total considerations, costs and taxable capital gains in Quadro RT (Modello Redditi PF) or Quadro T (Modello 730).
6. Payment of taxes (Modello F24 or 730 adjustment): For taxpayers using the Modello Redditi, taxes due are paid via Modello F24 using the tax codes established by the Agenzia delle Entrate. For those filing the Modello 730 through a withholding agent, the amounts are adjusted directly on pay or the pension instalment.

What are the 2026 tax deadlines for 2025 income?

Payments and electronic filings follow the ordinary tax calendar:

• May 2026: Opening of the pre-filled return (730 and Redditi PF) on the Agenzia delle Entrate electronic portal.
• 30 June 2026: Deadline for payment of the 2025 tax balance (26% substitute tax and 0.2% IVCA) and any first advance payment, with the option of deferred payment in July with a 0.40% surcharge.
• 30 September 2026: Final deadline for electronic submission of the Modello 730 via CAF, professional or web.
• Autumn 2026 (October – November): Final deadline for electronic transmission of the Modello Redditi Persone Fisiche and additional schedules.

Official Agenzia delle Entrate sources

• Circolare n. 30/E del 27 ottobre 2023 (PDF AdE) — Tax treatment of crypto-assets and the DAC8 EU framework.
• Circolare n. 12/E del 31 maggio 2024 (PDF AdE) — Clarifications on the value tax and tax monitoring.
• Risposta all'interpello n. 135/2025 (PDF AdE) — Application of weighted average cost under the administered regime.
• Istruzioni Redditi Persone Fisiche 2026 — Fascicolo 2 (PDF AdE) — Instructions for completing Quadri RW and RT.
• Istruzioni Modello 730/2026 (PDF AdE) — Instructions for completing Quadri W and T.
• Infoprecompilata — Quadro RW — Tax monitoring and IVCA settlement in Modello Redditi PF.
• Infoprecompilata — Quadro RT — Capital gains, rate sections and abolition of the exemption threshold.
• Infoprecompilata — Quadro W (730) — Monitoring and value tax in Modello 730.
• Infoprecompilata — Quadro T (730) — Miscellaneous financial income and capital gains in Modello 730.