Crypto Company Tax in Italy Explained for Founders

Italy has become a notable jurisdiction for crypto businesses, but its tax framework can be complex. For founders, understanding crypto company tax in Italy is essential to avoid penalties and optimise your structure. This guide explains the current rules, rates, and compliance requirements as of 2026, and compares Italy with more favourable alternatives like Panama.

Italy taxes crypto companies under its ordinary corporate income tax (IRES) and regional tax (IRAP), with specific rules for capital gains on crypto assets. The country also applies VAT to certain crypto services, and recent legislative updates have clarified the treatment of staking, lending, and mining. However, the effective tax burden can be high, leading many founders to consider relocating to jurisdictions with lower or zero crypto-specific taxes.

At Consulting24, we help founders navigate these complexities. We deliver crypto licences directly in Estonia, Lithuania, and Panama, and advise on jurisdictions worldwide. This page provides educational guidance only; always consult a qualified tax professional for your specific situation.

What Is Crypto Company Tax in Italy?

Crypto company tax in Italy refers to the taxes imposed on businesses that deal with cryptocurrencies, including trading, mining, staking, and payment services. The main taxes are:

• IRES (Corporate Income Tax): 24% on net profits.
• IRAP (Regional Tax): Approximately 3.9% (varies by region) on the productive value.
• Capital Gains Tax: 26% on gains from crypto asset disposals, unless held for more than 12 months (then tax-free for individuals; companies always taxable).
• VAT: 22% on certain services, though crypto-to-fiat exchanges may be exempt under EU VAT rules.

Italy applies these taxes to resident companies and to non-resident companies with a permanent establishment in Italy. The tax treatment of specific activities like staking and lending is still evolving, but as of 2026, they are generally treated as ordinary income. For example, a company that stakes ETH and receives rewards must include the fair market value of those rewards as taxable income at the time of receipt. Mining income is similarly taxed, with deductions allowed for hardware and electricity costs. The combined IRES and IRAP rate can reach nearly 28%, which is higher than many other EU countries. This has led some founders to explore jurisdictions with lower corporate tax rates, such as Lithuania (15%) or non-EU options like Panama (0% on foreign-source income).

Who Needs to Pay Crypto Company Tax in Italy?

Any entity that is tax resident in Italy and carries out crypto-related activities must comply. This includes:

• Italian-registered companies (SRL, SPA, etc.) that trade, mine, or provide crypto services.
• Foreign companies with a permanent establishment (PE) in Italy, such as a branch or office.
• Italian residents who control a foreign company that is effectively managed from Italy (subject to CFC rules).

Founders often ask whether they can avoid Italian tax by incorporating abroad. While possible, Italy has anti-avoidance rules and substance requirements. For instance, if a company incorporated in Panama is managed from Italy, the Italian tax authorities may deem it tax resident in Italy. Our company setup services can help you structure compliantly, ensuring that substance and control are properly located. Additionally, Italian tax residents who hold crypto assets through foreign entities may be subject to the Italian wealth tax on crypto (IVAFE) at 0.2% per year. This applies to individuals, but companies should also be aware of reporting obligations for foreign assets.

License Type and Regulator

Italy implements the EU MiCA regulation (fully in force since 2025). Crypto asset service providers (CASPs) must be registered with the Organismo Agenti e Mediatori (OAM) and comply with AML obligations. The Bank of Italy and CONSOB oversee the market. For companies already operating, a transitional regime applies until 2026.

Unlike some EU states, Italy does not have a separate 'crypto license'; instead, it uses the MiCA passport. The minimum capital requirement under MiCA is EUR 50,000 for basic services, EUR 125,000 for custody and exchange, and EUR 150,000 for more complex services (e.g., algorithmic trading). The OAM maintains a public register of CASPs. It is important to note that operating without registration is a criminal offence, with penalties including imprisonment for up to six months and fines of up to EUR 5,000. The registration process involves demonstrating adequate AML controls, a fit-and-proper test for management, and a detailed business plan. Consulting24 advises on the application process; for direct licensing in other jurisdictions, see our exchange license page.

Cost and Timeline for Italian Crypto Licensing

Setting up a compliant crypto company in Italy involves several costs. Below is an indicative table (exact figures depend on your business model and legal advice).

Total initial costs typically range from EUR 15,000 to EUR 35,000. Compare this with Panama where the flat fee is EUR 6,000 for a crypto license. The timeline for Italy can be longer if the Bank of Italy raises queries. Many founders find the process burdensome and opt for jurisdictions with faster setups, such as Lithuania (3-4 months) or Estonia (1-2 months). Consulting24 can provide a detailed cost breakdown during a consultation.

Capital Requirements

Under MiCA, the minimum capital requirement depends on the services offered:

• EUR 50,000 for reception and transmission of orders, execution of orders, and placing of crypto assets.
• EUR 125,000 for custody and administration, operation of a trading platform, and exchange services.
• EUR 150,000 for more complex services (e.g., algorithmic trading, portfolio management).

These amounts must be maintained as own funds. Italy does not impose additional capital buffers beyond MiCA, but the Bank of Italy may require higher amounts based on risk assessment. For example, a company offering custody of large volumes of crypto may be asked to hold additional capital to cover operational risks. The capital must be held in liquid assets, such as cash or government bonds. Founders should plan to have these funds available from day one, as proof of capital is required during the authorisation process. Failure to maintain the minimum capital can result in suspension or revocation of the license.

Tax Treatment of Crypto Activities in Italy

Italy treats crypto as intangible assets for tax purposes. Key points:

• Trading gains: Taxed as ordinary income at IRES 24% + IRAP ~3.9%, plus any regional surcharges.
• Mining: Income from mining is taxable at ordinary rates, with costs deductible.
• Staking and lending: Rewards are treated as income when received, taxable at ordinary rates.
• Capital gains: For companies, all gains are taxable; no holding period exemption (unlike individuals).
• VAT: Crypto-to-fiat exchanges are exempt from VAT under EU law; other services (e.g., wallet provision) may be subject to 22% VAT.

Double tax treaties may reduce withholding taxes on dividends, interest, or royalties paid abroad. For example, dividends paid by an Italian crypto company to a parent company in another EU state may be subject to a reduced withholding tax rate of 1.2% under the Parent-Subsidiary Directive. However, anti-abuse rules apply. The tax treatment of airdrops and forks is not fully settled; generally, they are considered income at fair market value upon receipt. Companies should maintain detailed records of all transactions, including timestamps, values, and counterparties, to support their tax filings. Consulting24 recommends working with a local tax advisor who specialises in crypto.

Allowed Activities Under Italian Crypto License

An Italian CASP license (MiCA) permits the following activities:

• Operation of a trading platform (order book, DEX, etc.)
• Exchange of crypto for fiat or other crypto
• Custody and administration of crypto assets on behalf of clients
• Reception and transmission of orders
• Execution of orders on behalf of clients
• Placing of crypto assets
• Portfolio management and advice
• Transfer services for crypto assets

Mining and staking as a business (not as a service to third parties) are generally not regulated activities and thus not covered by the license, but are subject to tax. However, if a company offers staking-as-a-service to clients, that may fall under custody or portfolio management and require authorisation. The MiCA framework also covers asset-referenced tokens (ARTs) and e-money tokens (EMTs), which have additional requirements. Italy has not yet implemented a specific regime for NFTs, but they may be treated as crypto assets if used as a medium of exchange or investment. For a full list of regulated activities, refer to the official MiCA text or consult with our team.

Step-by-Step Process for Crypto Company Setup in Italy

1. Business plan and legal structure - Choose an SRL (limited liability company) or other form. Draft a business plan covering AML procedures, risk assessment, and governance.

2. Company incorporation - Register with the Italian Companies Register (Registro delle Imprese). Minimum share capital for SRL is EUR 1 (but higher for licensing).

3. AML compliance setup - Appoint a AML officer, implement KYC/transaction monitoring, register with the OAM.

4. MiCA authorisation application - Submit detailed documentation to the Bank of Italy/CONSOB, including capital proof, organisational structure, and policies.

5. Tax registration - Obtain VAT number, register for IRES/IRAP, and set up accounting.

6. Bank account - Open a corporate bank account (can be challenging for crypto firms).

7. Ongoing compliance - File annual reports, tax returns, and AML reports.

Consulting24 advises on this process; for direct delivery, see our application process page. The entire process typically takes 6-9 months, longer if the authorities request additional information. Many founders find it more efficient to establish in a jurisdiction with a streamlined process, such as Lithuania or Estonia, where Consulting24 delivers directly.

Banking and Payment Solutions

Italian banks are often cautious with crypto companies. Many require a MiCA license or at least OAM registration. Some fintech-friendly banks and payment institutions (e.g., Sella, Banca Generali) may open accounts for licensed firms. Alternatively, e-money institutions (EMIs) based in Lithuania or Estonia often accept crypto clients. We can assist with introductions; our Lithuania and Estonia pages have more details on banking. In practice, many Italian crypto companies use a combination of a traditional bank account for fiat operations and an EMI for crypto-related transactions. Some EMI providers offer dedicated IBANs and support SEPA transfers, which can be sufficient for most business needs. However, due diligence requirements are high, and banks may request extensive documentation, including proof of license, AML policies, and source of funds. Consulting24 can recommend banking partners based on your specific business model.

Benefits of Italy for Crypto Companies

Italy offers a large domestic market, a growing crypto community, and a clear regulatory framework under MiCA. The country has a skilled workforce and good internet infrastructure. For companies targeting Italian clients, being licensed in Italy can build trust. However, the tax burden is high compared to other EU states like Lithuania (15% corporate tax) or non-EU jurisdictions like Panama (0% on foreign-source income). Additionally, Italy's bureaucracy can be slow, and the cost of compliance is significant. For founders whose primary market is not Italy, it may be more advantageous to license in a lower-tax jurisdiction and serve Italian clients cross-border under MiCA passporting. Consulting24 helps founders evaluate such trade-offs during a consultation.

Compliance and Trust

Compliance is critical. Italy imposes strict AML obligations, including customer due diligence, transaction monitoring, and reporting suspicious transactions to the Financial Intelligence Unit (UIF). Non-compliance can lead to fines up to EUR 5 million or more. We recommend engaging a local compliance officer and using automated monitoring tools. This is general guidance, not legal advice. The OAM requires annual reporting on AML activities, and the Bank of Italy may conduct on-site inspections. Companies must also comply with data protection regulations (GDPR) when handling customer data. Building trust with Italian clients requires transparency and adherence to these rules. Consulting24 can assist with compliance framework design; for jurisdictions where we deliver directly, we provide ongoing compliance support.

Common Mistakes When Setting Up a Crypto Company in Italy

• Underestimating capital requirements - Many startups fail to meet the MiCA minimum capital thresholds.
• Ignoring substance requirements - Italy requires physical presence (office, staff) for tax residency and licensing.
• Incorrect VAT treatment - Assuming all crypto services are VAT-exempt can lead to audits.
• Not registering with OAM - Operating without registration is a criminal offence.
• Poor record-keeping - Italy requires detailed transaction records for tax purposes.
• Overlooking CFC rules - Italian founders controlling foreign companies may face Italian tax on that company's income.
• Ignoring regional tax variations - IRAP rates differ by region, affecting overall tax burden.

To avoid these pitfalls, engage experienced advisors from the start. Consulting24's blog provides further insights on common errors.

Alternatives to Italy: Panama and Other Jurisdictions

Many founders compare Italy with more tax-friendly jurisdictions. Panama offers a flat EUR 6,000 license, no corporate tax on foreign-source income, and no capital gains tax. It is ideal for international operations. Lithuania has a 15% corporate tax and a straightforward licensing process. Estonia offers 0% tax on retained profits (20% on distributions) and a digital-first environment. For a full comparison, see our vs Lithuania page and our jurisdictions overview. Other alternatives include Switzerland (favourable tax treatment but high costs), Malta (EU member with 5% effective tax rate for certain structures), and Dubai (0% personal and corporate tax, but requires local presence). Each jurisdiction has trade-offs in terms of regulatory burden, market access, and cost. Consulting24 helps founders select the optimal jurisdiction based on their specific needs.

How Consulting24 Can Help

Consulting24 delivers crypto licenses directly in Estonia, Lithuania, and Panama. For Italy, we advise and coordinate with local partners. We help you choose the right jurisdiction based on your tax profile, target market, and budget. Our experts can guide you through the licensing process, company setup, and ongoing compliance. Contact us for a consultation.

Official sources

• Organismo Agenti e Mediatori (OAM)
• Bank of Italy

Related jurisdictions

Mardo Soo · CEO, Consulting24Personally advises on jurisdiction selection. 500+ crypto licenses across Estonia, Lithuania & Panama. LinkedIn →

General guidance, not legal advice. Rules and fees evolve — we confirm current requirements for your case.