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- Understanding Crypto Taxation in Italy
- Types of Crypto Income and Tax Treatment
- Step-by-Step Reporting Process
- Essential Record-Keeping Requirements
- Penalties for Non-Compliance
- Frequently Asked Questions
- Do I pay tax if I hold crypto without selling?
- How are crypto losses handled?
- Is DeFi taxed differently?
- Can I use foreign crypto tax reports?
- When does the €2,000 threshold apply?
Understanding Crypto Taxation in Italy
Italy treats cryptocurrency as a “financial asset” under the Testo Unico delle Imposte sui Redditi (TUIR). This means crypto transactions are subject to capital gains tax when converted to fiat currency or used for purchases. Since 2023, Italy has implemented a 26% capital gains tax on profits exceeding €2,000 annually from crypto investments. Failure to report accurately can trigger audits and penalties from the Agenzia delle Entrate (Revenue Agency).
Types of Crypto Income and Tax Treatment
Different crypto activities carry distinct tax implications:
- Trading Profits: Taxed at 26% on gains exceeding €2,000/year (calculated as Selling Price – Purchase Price – Fees)
- Staking/Mining Rewards: Treated as miscellaneous income at your marginal income tax rate (23%-43%) upon receipt
- Airdrops/Hard Forks: Taxable as income at market value when received if considered a “windfall”
- Crypto-to-Crypto Trades: Not taxable events under current guidelines
- NFT Sales: Subject to 26% capital gains tax if sold for profit
Step-by-Step Reporting Process
- Calculate Gains/Losses: Track all transactions using crypto tax software or spreadsheets. Include dates, values in EUR, and transaction IDs.
- Complete RW Form: File the Quadro RW section of your tax return to declare foreign-held assets (including crypto).
- Report Capital Gains: Include profits exceeding €2,000 in Quadro RT under “Other Income.”
- Submit by Deadline: File your Redditi PF form by November 30th following the tax year.
- Pay Taxes: Settle owed amounts via F24 form by June 30th (balance payments) or November 30th (final settlement).
Essential Record-Keeping Requirements
Maintain these records for 5 years:
- Wallet addresses and exchange account details
- CSV files of all transactions
- Proof of purchase prices and sale values
- Screenshots of mining/staking rewards
- Documentation for airdrops/forks
Penalties for Non-Compliance
Failure to report crypto income may result in:
- 90%-180% fines on unpaid taxes
- Criminal charges for evasion over €50,000
- Retroactive audits covering 5+ years
- Asset freezing via Redditometro spending analysis
Frequently Asked Questions
Do I pay tax if I hold crypto without selling?
No tax applies for holding, but you must declare foreign-held assets exceeding €15,000 via Quadro RW annually.
How are crypto losses handled?
Losses can offset capital gains in the same tax year but cannot be carried forward to future years.
Is DeFi taxed differently?
Yes – lending yields and liquidity mining rewards are taxed as miscellaneous income at your income tax rate.
Can I use foreign crypto tax reports?
Italian residents must use Italian tax forms, though foreign reports can support your documentation.
When does the €2,000 threshold apply?
The exemption applies per taxpayer (not per wallet) across all crypto activities annually.
