Italy Raises Crypto Tax to 33%, Kills €2k Exemption

The law includes an escape hatch for long-term holders. An optional 18% substitute tax lets investors step up the cost basis of their crypto holdings as of January 1, 2025. Someone who bought Bitcoin (BTC) at $5,000 and now sits at $50,000 can pay 18% on the $45,000 unrealized gain to reset the basis to current prices. That reduces the future tax bill when they eventually sell at the new 33% rate.

For crypto earned through staking, mining, or airdrops, the tax treatment is ambiguous. Those gains may be taxed at ordinary income rates, which in Italy can reach 43%, or they may fall under the 33% flat rate. The law leaves the distinction unclear.

The optional 18% step-up creates a strategic decision. If the 33% rate is a floor, paying 18% now to reset cost basis could be a bargain. If a future government cuts the rate, the early payment becomes a mistake.

Italy’s decision adds to a patchwork of national tax regimes that the EU’s Markets in Crypto-Assets regulation does not harmonize, a point covered in broader crypto market analysis. The exemption removal starts in 2025. The full 33% rate takes effect January 1, 2026.