Bitcoin and cryptocurrencies have become a fully established part of the financial instruments held by individuals and businesses, yet their taxation remains a topic that still generates a good deal of uncertainty. In this guide we explain how to correctly report crypto-assets in your tax return, how capital gains are taxed, and what tax monitoring obligations apply, also in light of the new automatic exchange of information rules coming into force from 2026.
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Bitcoin and Cryptocurrencies: How Capital Gains Are Taxed
Capital gains realised on the sale, exchange or conversion into legal tender of crypto-assets, including Bitcoin and other cryptocurrencies, are classified as miscellaneous income of a financial nature and are subject to a substitute tax. Income arising from other transactions involving crypto-assets is also included in the taxable base, while simple transfers between wallets belonging to the same person do not, as a rule, trigger a taxable event. Determining the capital gain requires correctly identifying the tax-recognised acquisition cost, which is often complex to reconstruct for anyone who has traded across multiple platforms and exchanges over time.
The Tax Return Form: Monitoring Obligations
In addition to the taxation of capital gains, holding crypto-assets generally also triggers a tax monitoring obligation under the RW section of the Italian tax return, similar to the one required for other assets held abroad, regardless of whether the crypto-assets are held on foreign exchanges, personal wallets or Italian platforms. Filling in this section requires care: failing to declare, or incompletely declaring, crypto-assets held exposes taxpayers to specific penalties, which are generally more severe when the assets are held in non-cooperative countries.
Starting in 2026, the European DAC8 directive also comes into force in Italy, extending to crypto-assets the automatic exchange of information between EU tax authorities, following the same model already used for bank accounts. Crypto-asset service providers will be required to report transaction data on their users to the tax authorities, making it much easier for the Italian Revenue Agency to cross-check declared information against what is actually held. We have dedicated an in-depth guide to this topic, DAC8 and Crypto-Assets: What Changes from 2026, which we recommend consulting for further operational details.
Why Accurate Record-Keeping Matters
With the introduction of automatic exchange of information, reconstructing the historical record of crypto-asset transactions becomes even more important: anyone who has held or traded Bitcoin and other cryptocurrencies over the past years without organised documentation risks running into difficulties once the data reported by exchanges no longer matches what was declared to the tax authorities. A voluntary correction, where possible through the “ravvedimento operoso” (voluntary disclosure) procedure, is generally preferable to a subsequent tax assessment.
How We Can Help
Studio Savia assists individuals and investors with the correct tax treatment of crypto-assets: reconstructing historical transactions, calculating taxable capital gains, completing the RW section, and preparing the tax return, as well as any regularisation of previously undeclared positions. We also help you understand the new obligations introduced by the DAC8 directive.
Have you invested in Bitcoin or other crypto-assets and want to make sure you declare everything correctly? Request a consultation or contact us: we’ll help you get a clear picture of your tax position.
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