Italy just made holding crypto a more expensive hobby. The country’s 2025 Budget Law bumps the capital gains tax on digital assets from 26% to 33%, effective January 1, 2026. And for good measure, lawmakers also axed the annual €2,000 tax-free threshold, meaning every euro of realized gain will now be subject to taxation.
Here’s the thing: 33% might actually be the compromise. Early proposals floated a rate as high as 42%, which would have placed crypto gains in roughly the same neighborhood as Italy’s top marginal income tax bracket. The final number landed at 33% after negotiations, a figure that still represents a 27% increase over the previous rate.
What changed and when it kicks in
The tax overhaul operates on a staggered timeline. The removal of the €2,000 annual exemption begins in 2025, meaning Italian crypto holders will start feeling the squeeze before the headline rate even changes. Starting next year, all realized gains from crypto assets become fully taxable regardless of size.
Then on January 1, 2026, the substitute tax rate itself jumps from 26% to 33%.
