---
title: "Italy Cracks Down on Crypto Gains With New 33% Tax"
date: 2026-06-15
author: "Kelvin Scott"
featured_image: "https://coinlaw.io/wp-content/uploads/2026/06/italy-implements-new-crypto-tax-regime.jpg"
categories:
  - name: "Cryptocurrency"
    url: "/crypto.md"
tags:
  - name: "News"
    url: "/tag/news.md"
---

# Italy Cracks Down on Crypto Gains With New 33% Tax

Italy is set to impose a higher tax burden on cryptocurrency investors after approving new rules that raise the capital gains tax rate on digital assets and eliminate a key tax exemption.

## Key Takeaways

- Italy will increase its crypto capital gains tax from 26% to 33% starting January 1, 2026.
- The €2,000 annual tax free threshold for crypto gains will be removed beginning in 2025.
- An optional 18% substitute tax allows investors to reset the tax basis of existing crypto holdings.
- The changes could significantly increase tax liabilities for both retail and long term crypto investors.

## What Happened?

Italy has approved changes to its **cryptocurrency tax framework** through its 2025 Budget Law. The new legislation raises the tax rate on capital gains from digital assets from 26% to 33%, with the higher rate taking effect on January 1, 2026.

In addition to the tax increase, lawmakers have eliminated the existing **€2,000 annual exemption for crypto gains**. Starting in 2025, all realized cryptocurrency gains will become taxable regardless of their size, bringing smaller investors into the tax net for the first time.

> 🇮🇹HUGE: ITALY HIKES CRYPTO TAX TO 33%  
>   
> Since January 1, 2026, Italy’s crypto capital gains tax RISES from 26% to 33%.  
>   
> The €2,000 tax-free threshold is also gone, meaning “every crypto gain is now taxable”, no matter how small. [pic.twitter.com/EZ4cnmYdoR](https://t.co/EZ4cnmYdoR)
> 
> — Coin Bureau (@coinbureau) [June 13, 2026](https://x.com/coinbureau/status/2065868051946655745?ref_src=twsrc%5Etfw)

 ## Italy Moves Forward With Tougher Crypto Tax Rules

The latest tax reform marks one of the most significant changes to Italy’s treatment of digital assets in recent years. While crypto investors had been bracing for higher taxes, the final version of the law ended up being less severe than some earlier proposals.

Initial discussions reportedly included a potential tax rate of **42% on crypto gains**. Such a rate would have placed cryptocurrency profits close to Italy’s highest income tax bracket. Following negotiations, lawmakers settled on a **33% rate instead**.

Although lower than originally proposed, the new rate still represents a substantial increase from the current 26% tax applied to cryptocurrency capital gains.

The reform will be introduced in phases. Investors will first feel the impact in 2025 when the €2,000 annual exemption disappears. One year later, the higher 33% capital gains tax rate will come into force.

## End of the €2,000 Exemption Could Hit Retail Investors

For many everyday crypto users, the removal of the tax free threshold may prove more significant than the increase in the tax rate itself.

Under the current framework, investors with modest annual gains could potentially avoid taxation if their profits remained below the exemption limit. That benefit will no longer exist once the new rules take effect.

As a result, all realized gains from [cryptocurrency transactions will become taxable](https://coinlaw.io/global-crypto-tax-reporting-statistics/), whether the investor earns a few hundred euros or several million.

The change broadens the scope of taxation and could increase reporting obligations for casual traders and smaller retail participants who previously remained outside the taxable threshold.

## New 18% Option Offers Planning Opportunity

The legislation also introduces an optional **18% substitute tax** that allows crypto holders to increase the tax basis of their existing digital asset holdings starting January 1, 2025.

This mechanism could be particularly attractive for long term investors who accumulated cryptocurrencies at significantly lower prices.

By paying the substitute tax on unrealized gains today, investors can reset their acquisition value to current market levels. This may help reduce future taxable gains when assets are eventually sold under the higher 33% tax regime.

For some investors, the provision creates an important tax planning decision as they evaluate whether paying a lower rate now could reduce future liabilities.

## Broader Impact on Europe’s Crypto Market

The new measures further highlight the fragmented nature of cryptocurrency taxation across Europe.

While the European Union’s [**Markets in Crypto Assets (MiCA)** framework](https://coinlaw.io/what-is-mica-regulation/) has introduced common standards for crypto markets and consumer protection, tax policy remains under the control of individual member states.

As a result, countries continue to apply different tax rates and reporting requirements to digital assets, creating a patchwork of rules for investors operating across the region.

Italy’s latest move adds another example of how governments are seeking greater tax revenue from the growing cryptocurrency sector while balancing regulatory oversight and market development.

## CoinLaw’s Takeaway

In my experience, the most important part of Italy’s reform is not the jump from 26% to 33%. The bigger shift is the removal of the **€2,000 exemption**, which brings even small crypto investors into the tax system. I found that changes affecting everyday users often have a wider impact than headline tax increases because they expand the number of people who must track, report, and pay taxes on their gains. Italy’s new framework signals that governments are becoming increasingly serious about treating crypto profits like traditional investment income.