Italy has approved new tax rules for cryptocurrency investors that will increase their capital gains tax rate from 26% to 33%. The higher tax rate will take effect on January 1, 2026.
The changes also eliminate the €2,000 annual exemption for crypto gains, making smaller investors taxable. This move is expected to significantly increase tax liabilities for both retail and long-term crypto investors.
A new optional 18% substitute tax has been introduced, allowing crypto holders to reset the tax basis of their existing digital asset holdings starting January 1, 2025. This could be particularly attractive for long-term investors who accumulated cryptocurrencies at lower prices.