How Much Tax Do You Pay on Crypto? Italy's 2025 Budget Law Updates

Question

## Key Points- Italy's 2025 Budget Law sets new tax rules for crypto. Big change.  - You'll pay 26% tax on gains over €2,000 yearly. Gotta declare it.  - Taxable stuff: cashing out to euros, swapping different types of crypto, buying things with crypto.  - Had crypto before? You can come clean with a disclosure and some substitute taxes.The blockchain world in Italy faces major tax changes in 2025. The Budget Law finally brings some clarity to crypto taxation, which was kind of a gray area until now.This new law creates specific fiscal rules for crypto. Not simple stuff. Many users seem confused about what to do when tax season comes around.Let's break it down. No fancy words. Just what you need to know to stay on the right side of the tax office.## How Italy Sees Your CryptoRegular people think of crypto as digital money. Secure. No banks needed. Freedom!The Italian Tax Authority sees things differently.They don't even call it cryptocurrency. They say "crypto-assets" – same as the EU's MiCA regulations. It's a "digital representation of value or rights" using blockchain tech.For years, there was no clear tax approach. Different rules for different tokens. NFTs, utility tokens, Bitcoin... all treated in their own way. Messy.Now in 2025, the picture is clearer. We finally know what gets taxed and how.## The New Tax Rules### **What Counts as Taxable Gains**Since January 2023, the law considers crypto gains as "miscellaneous income." Specifically when your profits pass €2,000 in a tax year.Good news though. Trading between similar cryptocurrencies isn't taxable. Bitcoin to Bitcoin? No tax impact.The law also introduced ways to regularize crypto you held before 2023.### **How Much You'll Pay**The tax rate sits at 26% on gains over €2,000. That threshold helps small traders.There's another option too. You can pay an 18% tax on your total crypto value as of January 1st. Might be better if you've held for ages or lost track of what you paid originally.## **When Do You Pay Taxes?**Not every crypto move triggers taxes. Here's what does:- Converting crypto to euros or dollars- Buying stuff with crypto- Swapping between different types of crypto assets (like using ETH to buy NFTs)And what doesn't matter for taxes:- Trading similar cryptocurrencies- Gains under €2,000 yearly- Losses (though you can use big losses to offset gains for up to 4 years)## **How to Report Crypto in Italy**You've got two main obligations:1. **RW Section**: List ALL your crypto here. Doesn't matter where it's stored or how little it's worth.   2. **RT Section**: Report your gains over €2,000 here. This is where the 26% tax applies.File by October 15, 2025, for your 2024 crypto activity.## **Final Thoughts**Crypto tax in Italy isn't straightforward. The rules keep evolving, which makes it hard to keep up.Legal updates can hit your wallet in unexpected ways. You need to watch your accounts closely now.One thing is clear – the tax-free crypto party is over. Italy, like many countries, wants its share. It seems the wild west days of crypto are ending.Not entirely sure about something? Talk to a tax pro. Better safe than sorry.