How to Report Bitcoin Gains in Italy: Complete Tax Guide 2024

Understanding Bitcoin Taxation in Italy

Reporting cryptocurrency gains is mandatory for Italian residents. Italy treats Bitcoin as a “foreign currency” under the Monitoraggio Fiscale regime (Tax Monitoring). Capital gains from crypto transactions are subject to a 26% tax rate if held for less than 12 months. Long-term holdings (over 12 months) qualify for a reduced tax rate or exemptions under specific conditions. Failure to report can trigger penalties of 120-240% of unpaid taxes plus interest.

Step-by-Step Guide to Reporting Bitcoin Gains

1. Calculate Your Gains: Subtract purchase price + transaction fees from selling price for each trade. Use FIFO (First-In-First-Out) method for cost basis calculation.
2. Document Transactions: Maintain records of all buys/sells, dates, amounts, wallet addresses, and exchange statements.
3. Complete RW Form: Declare foreign-held assets (including crypto) in Section RW of your Redditi PF tax return.
4. Report Gains in RT Form: Include net capital gains in Section RT, Box 5 (Other Income).
5. Pay Taxes: Settle 26% tax by June 30th following the tax year via F24 form.

Key Deadlines and Forms

• November 30: Deadline for voluntary disclosure of unreported assets
• June 30: Tax payment deadline for previous fiscal year
• September 30: Final tax return submission (Redditi PF)
• Essential Forms: Form RW (Foreign Assets), Form RT (Capital Gains), F24 (Payment Slip)

Special Considerations for Italian Crypto Taxes

Tax-Exempt Scenarios: Gains under €2,000 annually are exempt if crypto qualifies as a “financial investment.” Peer-to-peer transactions under €5,000 may also be excluded. Losses: Capital losses can offset gains within the same tax year but can’t be carried forward. Mining/Staking: Treated as self-employment income subject to IRPEF rates (23%-43%).

Common Reporting Mistakes to Avoid

• Neglecting to report wallets held on foreign exchanges
• Miscalculating holding periods (short vs. long-term)
• Forgetting transaction fees in cost basis calculations
• Omitting DeFi activities like yield farming
• Missing the November 30 disclosure deadline for past holdings

Frequently Asked Questions (FAQs)

Do I need to report if I only hold Bitcoin without selling?

Yes. Italian residents must declare foreign-held crypto assets exceeding €15,000 in Section RW annually, even without sales.

How are crypto-to-crypto trades taxed?

Each trade is a taxable event. You must calculate gains in EUR equivalent at transaction time using official exchange rates.

What if I used a non-Italian exchange?

You still must report. Italy’s tax authority (Agenzia delle Entrate) automatically receives data from many platforms under international agreements like CRS.

Can I deduct crypto investment losses?

Yes, but only against capital gains in the same tax year. Unused losses expire annually.

Is there a tax difference between Bitcoin and altcoins?

No. All cryptocurrencies follow the same 26% capital gains tax rules in Italy.

What proof should I keep for audits?

Retain for 10 years: exchange statements, wallet transaction IDs, bank transfer records, and EUR conversion calculations.

Professional Guidance Recommended

Given Italy’s complex crypto tax landscape, consult a Commercialista (certified accountant) specializing in cryptocurrency. They can help optimize legal deductions, structure holdings, and ensure compliance with Agenzia delle Entrate requirements. Penalties for errors start at €250 per omission and escalate based on undeclared amounts.