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Complete Guide: 2025 Tax Return
Foreign Investments in Italy
Stocks, ETFs, Dividends, Cryptocurrency - Quadro RT, Quadro RM, Quadro RW, IVAFE
⚠️ CRITICAL 2025/2026 CHANGES
1. €2,000 EXEMPTION REMOVED (From January 1, 2025)
The €2,000 capital gains exemption NO LONGER EXISTS. ALL capital gains must be declared and taxed, with no minimum amount.
2. RATE INCREASE TO 33% (From January 1, 2026)
The tax rate will increase from 26% to 33% for all capital income (stocks, ETFs, dividends, crypto). Plan with your accountant.
3. 18% REVALUATION OPTION (Only in 2025)
A one-time option is available to revalue crypto and assets to January 1, 2025 by paying an 18% substitute tax. Consult your accountant.
📊 Declarative vs Administered Regime
Key question: "Do I need Tax-Wizard to report my investments?"
The answer depends on the tax regime applied by your broker.
Administered Regime
How it works: The Italian broker automatically applies 26% on every transaction.
Brokers that apply this regime:
- - Fineco
- - Directa
- - Banca Sella
- - Webank
- - Other Italian brokers
User responsibility: MINIMAL
Only Quadro RW if required (assets > thresholds)
✋ You do NOT need Tax-Wizard
Declarative Regime
How it works: The investor must calculate and report all financial income manually.
Brokers that require this regime:
- - Revolut
- - DEGIRO
- - Interactive Brokers (IBKR)
- - eToro
- - Trading 212
- - Coinbase, Binance (crypto)
- - All other foreign brokers
User responsibility: FULL
Quadro RT + Quadro RW + IVAFE calculation
👉 Tax-Wizard is for YOU!
💡 How to know which regime you have?
If you use an Italian broker → probably Administered Regime
If you use a foreign broker → definitely Declarative Regime
Not sure? Check if the broker already withheld taxes (26%) on sales.
📝 Modello 730 vs Modello REDDITI PF - Which Form to Use?
2024 Update: The Modello 730 now includes Quadro T (capital gains) and Quadro W (foreign assets), allowing more taxpayers to use the simplified form instead of the Modello REDDITI PF.
Modello 730
For employees and pensioners
✅ Advantages:
- - Pre-filled by the tax authority
- - Refund/debit via paycheck or pension
- - Tax authority calculates the amounts
- - Simpler to complete
- - No F24 needed for balance payments
👤 Who can use it:
- - Employees and pensioners
- - Those with investment income (stocks, ETFs, crypto)
- - Those with foreign assets to monitor
Modello REDDITI PF
For self-employed and complex situations
📋 Features:
- - Complete form with all quadros
- - Tax calculated by the taxpayer
- - Payments via F24
- - Direct refund from Agenzia delle Entrate
👤 Who must use it:
- - Self-employed with VAT number
- - Those without a withholding agent
- - Those with complex foreign income
🔄 Quadro Equivalence: 730 ↔ REDDITI PF
The 730 quadros have different names but contain the same data as their REDDITI PF equivalents:
| Description | Modello 730 | Modello REDDITI PF |
|---|---|---|
| Capital gains (stocks, ETFs, crypto) | Quadro T | Quadro RT |
| Foreign asset monitoring + IVAFE | Quadro W | Quadro RW |
| Foreign capital income (dividends) | Quadro D | Quadro RM |
📋 How to Fill Modello 730 (Quadro T and W)
Quadro T - Capital Gains (equivalent to Quadro RT)
Row T41: Total crypto proceeds and purchase costs
Row T43: Prior year crypto losses to carry forward
Row T44: Certified losses from brokers (if any)
Rows T11-T16: Securities capital gains (stocks, ETFs, derivatives) at 26%
Quadro W - Foreign Assets (equivalent to Quadro RW)
Rows W1-W5: One row for each foreign asset held:
- - Col 3: Investment type code (20=securities, 21=crypto)
- - Col 4: Foreign country code (840=USA, 372=Ireland, etc.)
- - Cols 7-8: Initial and final year value
- - Col 10: Days held
Row W6: IVAFE calculation (0.2% on foreign securities)
Row W8: Crypto wealth tax (0.2% from 2023)
🤔 Which Form Should I Use?
Use Modello 730 if:
- ✅ You are an employee or pensioner
- ✅ You don't have a VAT number
- ✅ You have a withholding agent
- ✅ You want simpler filing
Use Modello REDDITI PF if:
- ✅ You are self-employed
- ✅ You have no withholding agent
- ✅ You have other business income
- ✅ You need Quadro LM, RE, RG
💡 Tax-Wizard generates both formats!
Our Excel report includes:
- Sheets for Modello 730 (Quadro T and Quadro W) with copy-paste values
- Sheets for Modello REDDITI PF (Quadro RT and Quadro RW)
- Step-by-step instructions for filling both forms
💰 Foreign Stocks & ETFs - Complete Taxation
Tax Rate
2025 (Current Year)
26%
Flat substitute tax
⚠️ From January 1, 2026
33%
27% INCREASE!
⚠️ €2,000 EXEMPTION REMOVED
From January 1, 2025, the €2,000 exemption NO LONGER EXISTS. Even €1 of capital gains must be declared and taxed at 26%.
How the Calculation Works (FIFO/LIFO Method)
For stocks and traditional securities, Italy uses the FIFO method (First In, First Out).
⚠️ Cryptocurrency Method: LIFO
For cryptocurrencies, the Agenzia delle Entrate recommends the LIFO (Last In, First Out) method per Resolution No. 788/2021. FIFO is still accepted if applied consistently.
📘 Practical Example:
FIFO Calculation:
- First sell the 100 shares from 03/01 (€150 each)
- Then sell 20 shares from 06/15 (€180 each)
Total cost: (100 × €150) + (20 × €180) = €18,600
Sale proceeds: 120 × €200 = €24,000
Capital gain: €24,000 - €18,600 = €5,400
Tax 26%: €5,400 × 0.26 = €1,404
⚠️ Tax 33% (2026): €5,400 × 0.33 = €1,782 (+€378!)
Quadro RT - Where to Declare
Quadro RT, Section I - Capital Gains and Losses
Report all stock and ETF sales with related gains/losses here.
✅ Tax-Wizard does all of this automatically:
- Applies FIFO correctly
- Calculates capital gains/losses
- Generates a completed Quadro RT
- Calculates tax due (26% or 33%)
🏦 Foreign Dividends - Tax Credit
Dividend Taxation
Foreign dividends are taxed at 26% in Italy (⚠️ 33% from 2026). However, most countries apply a withholding tax that you may recover.
📊 Withholding by Country
| Country | Foreign Withholding | IT Tax (26%) | Recoverable |
|---|---|---|---|
| 🇺🇸 USA | 15% | 26% | 15% recoverable |
| 🇬🇧 United Kingdom | 0% | 26% | 0% |
| 🇩🇪 Germany | 26.375% | 26% | 26% recoverable |
| 🇫🇷 France | 26% | 26% | 26% recoverable |
| 🇨🇭 Switzerland | 35% * | 26% | 26% recoverable |
* Swiss withholding can be reduced to 15% through a refund procedure with Swiss authorities.
Note: Withholding rates vary by bilateral tax treaties and can change. Check current rates for your specific case or consult an accountant.
⚠️ IMPORTANT: Foreign Tax Credit
The foreign tax credit is available ONLY if you opt for ordinary taxation instead of the substitute tax.
Standard regime (26% substitute tax):
Generally, the foreign tax credit is NOT applicable. You pay 26% on the gross dividend
without recovering the foreign withholding.
Optional regime (ordinary taxation):
With this option, you can recover foreign withholding as a tax credit up to the Italian tax due.
💡 Consult an accountant to evaluate which regime is best for your situation.
📘 Practical Example - US Dividend:
In Italy (Quadro RM - Section RM31):
* Tax credit is only available with the ordinary taxation option. With the 26% substitute tax, the credit may not be applicable.
✅ Tax-Wizard automatically calculates:
- Gross and net dividends
- Foreign withholding paid
- Recoverable tax credit
- Residual Italian tax
₿ Cryptocurrency - Definitive 2025 Guide
⚠️ €2,000 EXEMPTION ELIMINATED FROM 2025
The €2,000 exemption for cryptocurrencies, introduced by the 2023 Budget Law, was eliminated from January 1, 2025. Now, even €1 of capital gain must be declared and taxed at 26% (33% from 2026).
Historical note: From 2023 to 2024, crypto gains were only taxable if exceeding €2,000 annually.
Crypto Taxation in Italy
1. Crypto Trading
Buy and sell crypto, including crypto-to-crypto swaps
2. Staking
Staking income (e.g., ETH 2.0, Cardano)
3. Mining ⚠️
Occasional:
Professional:
Business income!
⚠️ Mining: Occasional vs Professional
The distinction depends on frequency, regularity, and organization of the activity:
Occasional Mining (26%/33%):
- Few home miners
- Sporadic activity
- No business structure
- Modest revenues
Professional Mining (23%-43%):
- Mining farms / dedicated facilities
- Continuous activity
- VAT registration / business structure
- Significant revenues
🎁 Airdrops (Free Distributions)
Airdrops are free distributions of cryptocurrencies or tokens (e.g., Arbitrum, Uniswap, ENS, Aptos).
Airdrop Taxation:
⚠️ Important (2023 update): From 2023, ALL crypto income (staking, airdrops, mining, trading) must be declared in Quadro RT Section V-A, no longer in Quadro RL.
📘 Practical Example - Arbitrum Airdrop:
Scenario:
- You receive 500 ARB airdrop tokens on 03/23/2024
- ARB market price on 03/23/2024: €0.80 per token
→ Total value received: 500 × €0.80 = €400
→ Tax 26%: €400 × 0.26 = €104
→ Declaration: Quadro RT Section V-A
When you sell later:
- Acquisition cost = €400 (value declared on receipt)
- If you sell all 500 ARB for €600 total
→ Capital gain: €600 - €400 = €200
→ Tax 26%: €52
→ Declaration: Quadro RT Section V-A (capital gains)
Note: Both the airdrop receipt and subsequent sale go in Quadro RT Section V-A (different rows for income vs capital gains).
⚠️ Crypto-to-Crypto Is Taxable!
Attention: Swapping one cryptocurrency for another is a taxable event.
Example:
- You buy 1 BTC at €20,000
- BTC rises to €50,000
- You swap 1 BTC for 20 ETH (value €50,000)
→ Capital gain: €50,000 - €20,000 = €30,000
→ Tax 26%: €7,800
💎 18% Revaluation Option (Only 2025)
2025 update: One-time option to revalue crypto as of January 1, 2025.
📅 DEADLINE: November 30, 2025 - You must pay the 18% substitute tax by this date to benefit from the revaluation (affrancamento).
How it works:
- Value your crypto at market value on January 1, 2025
- Pay a 18% substitute tax on the latent gain
- The new value becomes your acquisition cost
- Latent gains are reset
- Payment deadline: November 30, 2025
Example:
- You bought BTC at €10,000
- On 01/01/2025 it is worth €40,000
- Latent gain: €30,000
→ You pay 18%: €5,400 (by November 30, 2025)
→ New acquisition cost: €40,000
It can be worthwhile if you plan to sell soon and want to avoid the 33% rate in 2026.
⚠️ Consult an accountant to evaluate whether this is beneficial for your case.
✅ Tax-Wizard handles crypto:
- Crypto trading (including crypto-to-crypto swaps)
- Staking rewards
- IVAFE calculation for crypto held abroad
🏦 Peer-to-Peer Lending (P2P)
P2P lending is a form of investment where you lend money directly to individuals or businesses through online platforms.
Common platforms: Mintos, Bondora, Robocash, Peerberry, Crowdpear, GoParity, Esketit
How P2P Works
Taxation in Italy
Tax Obligations for Foreign P2P
📋 What You Must Declare:
1. Quadro RL - Interest Received
Declare ALL interest received during the tax year.
Note: Interest is declared in the year it is received (cash basis).
2. Quadro RW - Platform Balance
Declare the total balance on December 31 (principal + unwithdrawn interest).
Example: If you have €10,000 invested + €800 interest accrued = Declare €10,800
3. IVAFE - Wealth Tax
If average annual balance > €5,000 → IVAFE: €34.20 (fixed amount)
Note: For foreign current accounts, the fixed amount applies, not 0.2%.
📘 Practical Example - Mintos Investment:
Scenario Year 2024:
- 01/01/2024: You deposit €10,000 on Mintos
- During 2024: You receive total interest of €1,200 (10% annual)
- 12/31/2024: Final balance €11,200 (€10,000 principal + €1,200 interest)
2025 Declaration (for tax year 2024):
Quadro RL: Interest received €1,200
Tax 26% on interest: €312
Quadro RW: Balance on 12/31/2024 €11,200
IVAFE (average balance > €5k): €34.20
Total taxes to pay: €346.20
⚠️ WARNING: Loan Losses
If a loan defaults, the losses are NOT automatically deductible from capital gains or interest.
Tax treatment of losses:
- Loan losses are complex to handle for tax purposes
- They may not be deductible until the loan is definitively uncollectible
- Some platforms offer buyback guarantees that prevent losses
- Consult an accountant for significant losses
💡 Italian vs Foreign P2P Platforms
Italian Platforms:
- May apply withholding (administered regime)
- Quadro RW: Generally NOT required
- IVAFE: NOT due (assets in Italy)
- Simpler tax handling
Foreign Platforms (Mintos, Bondora, etc.):
- Declarative regime (NO automatic withholding)
- Quadro RW: MANDATORY
- IVAFE: €34.20 if average balance > €5k
- Higher yield but more tax obligations
✅ Tax-Wizard and P2P Lending:
- Tax-Wizard automatically recognizes P2P interest from supported platforms (Esketit, Peerberry, GoParity, Crowdpear, Mintos, Bondora, etc.)
- P2P interest is categorized separately in Quadro RL
- Quadro RL is automatically generated in the combined report
- Keep platform statements as supporting documentation
📋 Quadro RT vs Quadro RM vs Quadro RL - Which One to Use?
Common question: "Where do I declare my crypto and financial investments?"
The answer depends on the type of income: Quadro RT for capital gains and crypto income, Quadro RM for dividends and interest, Quadro RL for P2P lending.
⚠️ Important 2023 Update: From 2023, ALL crypto income (staking, airdrops, mining, trading) must be declared in Quadro RT Section V-A, no longer in Quadro RL. Foreign dividends go in Quadro RM Section RM31.
Quadro RT
Capital Gains and Miscellaneous Income
Section I - Stocks/ETFs:
- ✓ Sale of stocks, ETFs
- ✓ Sale of bonds
Section V-A - Crypto (from 2023):
- ✓ Sale of crypto
- ✓ Crypto-to-crypto swaps
- ✓ Staking rewards
- ✓ Airdrops
- ✓ Mining (occasional)
Example:
Sell BTC for €10,000 gain
→ Quadro RT V-A
Quadro RM
Income Subject to Separate Taxation
Section RM31 - Dividends:
- ✓ Foreign dividends
- ✓ From US stocks (Apple, etc.)
- ✓ From EU stocks
Interest:
- ✓ Interest on foreign accounts
- ✓ Bond coupons
Example:
Receive €500 Apple dividend
→ Quadro RM Section RM31
Quadro RL
Other Income
P2P Lending:
- ✓ Mintos interest
- ✓ Bondora interest
- ✓ Robocash interest
- ✓ Other P2P platforms
Note:
⚠️ Staking/airdrops NO LONGER go here (now Quadro RT V-A)
Example:
Receive €1,000 Mintos interest
→ Quadro RL
⚠️ IMPORTANT: Crypto Staking Example (Post-2023)
Since 2023, crypto staking creates only ONE declaration type - all in Quadro RT Section V-A:
Full scenario:
💡 Simple rule (from 2023):
- Crypto (trading, staking, airdrops, mining) → Quadro RT Section V-A
- Stocks/ETFs sales → Quadro RT Section I
- Dividends and interest → Quadro RM Section RM31
- P2P lending interest → Quadro RL
- Quadro RW → ALWAYS required for foreign assets
📄 Quadro RT - Capital Gains and Losses
Quadro RT is the section of the Modello Redditi PF where you declare all capital gains and losses (plusvalenze e minusvalenze) from financial investments.
⚠️ Note: Dividends are NOT declared in Quadro RT. Foreign dividends go in Quadro RM Section RM31.
Quadro RT Structure
Section I - Capital Gains from Shareholdings
Declare all sales of stocks, ETFs, and bonds with related gains or losses.
What to include:
- Purchase and sale dates
- Quantity sold
- Purchase price (FIFO for stocks, LIFO for crypto)
- Sale price
- Capital gain/loss
Section V-A - Crypto Assets (from 2023)
Since 2023, ALL crypto income goes here, including:
What to include:
- Crypto sales (BTC, ETH, etc.)
- Crypto-to-crypto swaps
- Staking rewards (value at receipt)
- Airdrops (value at receipt)
- Occasional mining income
💡 LIFO method is recommended for crypto per Agenzia Entrate Resolution 788/2021
Sections II-IV - Other Capital Gains
Other types of capital gains including qualified participations, non-qualified participations, and special cases.
📅 Filing Deadline
October 31, 2026 - Deadline to file Modello Redditi PF for tax year 2025.
✅ Tax-Wizard generates the full Quadro RT:
- Section I for stocks/ETFs
- Section V-A for crypto
- Automatic tax calculation (26%/33%)
- Summary totals
- Ready for filing
💎 Quadro RW & IVAFE - Fiscal Monitoring
⚠️ OBLIGATION REGARDLESS OF VALUE
Quadro RW must be completed for ALL foreign financial assets, even a single share worth €1.
What is Quadro RW?
Quadro RW is for fiscal monitoring of foreign financial assets. It is mandatory even if you owe no tax, for transparency purposes.
Declaration Thresholds
Stocks, ETFs, Crypto
No threshold - Must ALWAYS be declared, regardless of value
Foreign Bank Accounts
Mandatory declaration if:
- Maximum balance (peak) > €15,000 at any time during the year
OR
- Average balance > €5,000
💰 IVAFE - Tax on Value of Foreign Financial Assets
In addition to declaration, you must pay IVAFE, a wealth tax based on the market value of assets on December 31.
Securities (Stocks, ETFs, Crypto)
0.2%
of market value at 12/31
Example:
Portfolio on 12/31: €50,000
IVAFE: €50,000 × 0.002 = €100
⚠️ Blacklisted Countries
0.4%
DOUBLE RATE!
Blacklist countries:
Countries with privileged tax regimes identified by the Italian Tax Agency (list updated periodically)
Foreign Bank Accounts
If average balance > €5,000
€34.20
fixed amount
⚠️ QUADRO RW PENALTIES
Failure to declare:
- Penalty: 3% - 15% of undeclared value
- Minimum administrative penalty: €258
Declaration is MANDATORY regardless of value.
✅ Tax-Wizard generates the full Quadro RW:
- List of all foreign assets
- IVAFE calculation (0.2% or 0.4%)
- Valuation on December 31
- Threshold and obligation warnings
📉 Loss Carryforward - Loss Offsetting
Capital losses (losses from sales) can be carried forward for 5 years (up to 4 subsequent tax years) and used to offset future gains.
How It Works
📘 Practical Example:
Year 2024:
Losses: €10,000
No gains → No tax due
✓ Losses can be carried forward until 2028 (next 4 years)
Year 2025:
Gains: €15,000
2024 losses to offset: €10,000
Net taxable gain: €15,000 - €10,000 = €5,000
Tax 26%: €5,000 × 0.26 = €1,300
(Instead of €3,900 without offset!)
⚠️ Anti-Dividend Washing Rule (Article 68, paragraph 5 TUIR)
Important: When you sell stocks at a loss, the tax-deductible loss is REDUCED by tax-exempt dividends received from those same stocks in the previous 36 months.
How the Rule Works:
Anti-avoidance purpose: Prevent tax optimization where the investor:
- Receives dividends (partially tax-exempt)
- Sells at a loss to deduct taxes
- Buys the shares back (keeping the position)
Legal solution: Losses are reduced by tax-exempt dividends received in the previous 36 months.
📘 Detailed Practical Example:
Scenario:
- January 2021: Buy 1,000 XYZ shares at €50 each (total cost: €50,000)
- 2021-2024: Receive total dividends of €5,000 (of which €2,000 are tax-exempt)
- November 2024: Sell all 1,000 shares at €40 each (proceeds: €40,000)
Calculation WITHOUT anti-washing rule:
- Accounting loss: €40,000 - €50,000 = -€10,000
- Deductible loss: €10,000
Calculation WITH anti-washing rule (CORRECT):
- Accounting loss: €40,000 - €50,000 = -€10,000
- Tax-exempt dividends received (36 months): €2,000
- Deductible loss: €10,000 - €2,000 = €8,000
Result: You lose the ability to deduct €2,000 of losses because of tax-exempt dividends received.
When Does This Rule Apply?
✓ You received dividends from a stock within 36 months before the sale
✓ Those dividends were partially or fully tax-exempt
✓ You sell the shares at a loss
✓ The shares are not eligible for PEX (Participation Exemption)
⚠️ IMPORTANT - Tax-Wizard Does NOT Calculate This Automatically
The anti-dividend washing rule requires historical data on dividends received in the previous 36 months for each stock sold at a loss.
You must verify manually:
1. Identify stocks sold at a loss
2. Check if you received dividends from those stocks in the previous 36 months
3. Determine the tax-exempt portion of dividends
4. Reduce the deductible loss accordingly
5. Consult an accountant for complex cases
💡 How to Track Losses
1. Keep documents: Statements for loss-making sales
2. Report in the return: Enter losses in Quadro RT
3. Track carryforward: Unused losses carry forward automatically to the following years (up to 4 years)
ℹ️ Tax-Wizard calculates current-year losses automatically. For prior years, you must enter carryforward manually.
✅ Do I Need to Declare If...?
Common question: "In which cases must I file a tax return for my foreign investments?"
✅ You MUST Declare Quadro RT If:
- • You SOLD stocks, ETFs, or crypto in 2024
- • You did crypto-to-crypto swaps (e.g., BTC → ETH)
- • You sold at a loss (to carry losses forward)
- • You have capital gains even of €1 (from 2025, no minimum threshold)
❌ You Do NOT Declare Quadro RT If:
- • You only BOUGHT (no sales in 2024)
- • You only held assets without transactions
- • You made no trades in 2024
- • You use an Italian broker with administered regime (taxes already withheld)
✅ You MUST Declare Quadro RL If:
- • You received foreign dividends
- • You received foreign interest (accounts, P2P lending)
- • You received staking rewards or mining income
- • You received crypto airdrops
⚠️ Quadro RW Is ALWAYS Required If:
- • You hold any foreign asset on December 31
- • Even just €1 of value (no minimum threshold)
- • Even if you did not sell anything
- • Even if your portfolio is at a loss
- • For stocks, ETFs, crypto, foreign accounts
💡 Practical Examples of Common Scenarios:
Scenario 1: Only Purchases
You bought €10,000 of stocks on IBKR but did not sell anything.
→ Quadro RT: NO | Quadro RL: NO | Quadro RW: YES + IVAFE €20
Scenario 2: Sales with Gains
You sold stocks with €5,000 capital gains.
→ Quadro RT: YES (capital gain) | Quadro RL: NO | Quadro RW: YES
Scenario 3: Losses Only
You sold at a loss (-€2,000) and want to carry forward losses.
→ Quadro RT: YES (loss carryforward) | Quadro RL: NO | Quadro RW: YES
Scenario 4: Staking and Sale
You received €1,000 in staking rewards and then sold crypto with €500 gain.
→ Quadro RT V-A: YES (staking + sale) | Quadro RW: YES
From 2023, both staking and crypto sales go in Quadro RT Section V-A.
Scenario 5: Dividends Only
You received €500 in dividends from US stocks, no sales.
→ Quadro RT: NO | Quadro RM: YES (dividends in RM31) | Quadro RW: YES
⚠️ WARNING: Quadro RW Is Not Optional!
Even if you did not sell anything and do not need Quadro RT or RL, Quadro RW is ALWAYS required if you hold foreign assets on December 31.
Penalty for missing RW: 3-15% of undeclared value (minimum €258)
❓ Frequently Asked Questions (FAQ)
1. What is the difference between the declarative and administered regime?
Administered regime: The Italian broker automatically applies 26% to every transaction. You do nothing.
Declarative regime: The investor must calculate and report all financial income. Foreign brokers (Revolut, DEGIRO, IBKR) require this regime.
2. Does the €2,000 exemption still exist in 2025?
NO.
From January 1, 2025, the €2,000 capital gains exemption is eliminated. ALL gains must be declared and taxed at 26%, with no minimum amount.
3. When does the capital gains tax increase to 33%?
From January 1, 2026, the capital gains rate increases from 26% to 33% for all capital income (stocks, ETFs, dividends, crypto).
This means a 27% increase in your tax burden.
4. What is Quadro RW and when do I need to fill it out?
Quadro RW is mandatory to declare ALL foreign financial assets, regardless of value.
It is required even for a single foreign share worth €1. It includes IVAFE calculation (0.2% of market value).
5. How is cryptocurrency mining taxed?
Occasional mining: Taxed at 26% (33% from 2026) - sporadic activity with modest revenues.
Professional mining: Taxed as business income (23%-43%) - requires VAT registration and continuous activity with mining farms.
6. Can I recover foreign withholding on dividends?
Yes. Withholding taxes paid abroad can be recovered as a tax credit up to the Italian tax due (26%).
Example: US dividend with 15% withholding → you recover the full 15% as an Italian tax credit.
7. Is swapping BTC for ETH taxable?
YES.
Every crypto-to-crypto swap is a taxable event. You must calculate the capital gain as if you sold BTC for EUR and then bought ETH.
8. What is the 18% revaluation option?
2025 update: a one-time option to revalue crypto and financial assets to the market value on January 1, 2025 by paying a substitute tax of 18%.
It resets latent gains and can help avoid the 33% rate in 2026. Consult an accountant to evaluate.
9. How long can I carry forward capital losses?
Capital losses can be carried forward for 5 years (up to 4 subsequent tax years).
Example: 2024 losses can be used until 2028.
10. Which brokers are supported by Tax-Wizard?
Supported brokers:
- Revolut
- DEGIRO
- Interactive Brokers (IBKR)
- eToro
- Trading 212
- Coinbase, Binance, Kraken (crypto)
- And many others...
11. Does Tax-Wizard support options, futures, and derivatives?
⚠️ WARNING: Limited Derivatives Support
Taxation of options, futures, and other derivatives is extremely complex, and Tax-Wizard is primarily optimized for stocks, ETFs, and standard crypto.
Options (Call/Put):
- Premiums received: Taxed at expiration or exercise
- Assigned options: Complex cost basis (premium + strike price)
- Complex spreads: Iron condors, butterflies, etc. require manual calculations
- FIFO method: Can be problematic with rolled positions
Futures:
- Mark-to-market: Some futures may use daily valuation
- Section 1256 contracts (US): Special treatment not recognized in Italy
- Settlement vs delivery: Different tax impacts
CFD (Contracts for Difference):
- Taxation: Realized gains at 26% (33% from 2026)
- Leverage: Does not affect tax calculation (only net gains)
- Quadro RT: Section I (Capital gains)
⚠️ What to Do If You Traded Derivatives:
- Still generate a Tax-Wizard report for stocks/ETFs/standard crypto
- For complex derivatives:
- Download a complete broker statement (IBKR Realized P&L report)
- Identify all options/futures transactions
- Manually calculate realized gains using Italian FIFO
- Consult an accountant specialized in derivatives
- Manually add derivative gains/losses to the Quadro RT total
- Document all calculations for potential tax audits
💡 Why Are Derivatives So Complex?
Derivatives introduce scenarios that make accurate automated calculation difficult:
- Options rolled multiple times (implicit wash sales)
- Assignment and exercise create "virtual" transactions
- Multi-leg spreads with partial opens/closes
- Basis adjustments for ITM/OTM options
- Italian tax treatment vs US Section 1256 incompatibility
✅ Brokers with Dedicated Tax Reports:
Interactive Brokers (IBKR) provides detailed derivative reports:
- Realized P&L by Instrument Type
- Options Exercise & Assignment Report
- Futures Delivery Report
Use these IBKR reports as the basis for manual calculations with your accountant.
🚨 If you traded significant derivatives (>€10,000),
you MUST consult a specialized accountant before filing.
12. What if the broker does not provide acquisition cost?
Common scenario: You transferred shares from a broker, lost old documents, or the broker has incomplete history.
1. Search Existing Documentation
- Old emails: Purchase confirmations, broker notifications
- Bank statements: Payments made for purchases
- PDF statements: Archives from the previous broker
- Saved screenshots: Portfolio view, trade confirmations
2. Contact the Previous Broker
By law, brokers must keep transaction data for 10 years.
- Request "Historical Statements" or "Trade Confirmations"
- Specify the exact period (approximate purchase dates)
- Some brokers charge for historical data (€20-50)
- It may take 2-4 weeks to receive documents
3. "Normal Value" Method (Article 9 TUIR)
If you cannot find the historical cost, you can use the market value at the purchase date as cost basis.
How to proceed:
- Determine the approximate purchase date (e.g., "January 2020")
- Find the historical price from verifiable sources:
- Yahoo Finance Historical Prices
- Bloomberg Terminal (if you have access)
- Official exchange website (e.g., NYSE, LSE)
- Use the closing price of the purchase date or monthly average
- IMPORTANT: Save screenshots/PDFs as documentation
- Keep all documentation for 10 years (possible audits)
⚠️ In an audit, you must show "reasonable efforts" to find the real cost before using normal value.
📘 Practical Example:
Situation:
You transferred 50 Apple shares from eToro to IBKR in 2023. eToro does not provide cost basis.
Steps:
- You check old eToro emails → Find purchase confirmation "February 2021" but no exact price
- You contact eToro → They charge €30 for historical statement, arrives in 3 weeks
- You find: 50 AAPL shares bought on 02/15/2021
- Yahoo Finance: AAPL close 02/15/2021 = $135.13
- EUR/USD exchange rate 02/15/2021: 1.21 (ECB)
- Cost basis: (50 × $135.13) / 1.21 = €5,585.95
Result: You have documented cost basis with verifiable sources (eToro + Yahoo + ECB)
❌ What NOT to do:
- Do not "guess" the cost without documentation
- Do not use the current price as cost basis (tax evasion!)
- Do not ignore the sale because you lack cost basis (non-reporting)
- Do not declare cost basis €0 "to be safe" (you would overpay taxes)
💡 Pro Tip: Always Keep Documents
To avoid future problems, download and save immediately after each purchase:
- Trade confirmation PDF
- Monthly statements
- Year-end tax statements
- Transaction screenshots
Create a Google Drive/Dropbox folder "Taxes/[Year]/[Broker]" and save them there.
13. How do I value assets on December 31 for Quadro RW/IVAFE?
Correct valuation on December 31 is crucial for Quadro RW and IVAFE calculation.
📅 Exact Valuation Date and Time
Date: December 31 of the tax year
Time: End of trading day (market close)
Note: If December 31 falls on a weekend or holiday, use the last trading day of the year.
💰 Price to Use by Asset Type
Stocks & ETFs
Price: Closing price on December 31 (or last trading day)
Sources: Yahoo Finance, official exchange website, Bloomberg
Example:
- AAPL close 12/31/2024: $195.50
- EUR/USD rate: 1.08
- EUR value: $195.50 / 1.08 = €181.02 per share
Cryptocurrency
Price: Market price at December 31, 23:59 (UTC)
Sources: CoinGecko, CoinMarketCap, Binance, Kraken
Example:
- BTC price 12/31/2024: €41,250
Funds & SICAVs
Price: NAV (Net Asset Value) on December 31
Source: Official fund website, prospectus
Bonds
Price: Quotation + accrued interest
Note: Accrued interest must be included in the value
💱 Exchange Rate to Use
Official source: ECB exchange rates (European Central Bank)
Date: December 31 (or last available business day)
Where to find them:
- ECB official site: www.ecb.europa.eu/stats/policy_and_exchange_rates
- Yahoo Finance (currencies section)
- Bank of Italy official rates
Example ECB rates on 12/31/2024:
- EUR/USD: 1.0800
- EUR/GBP: 0.8650
- EUR/CHF: 0.9320
⚠️ Illiquid or Hard-to-Value Assets
NFT: Use last comparable sale price or floor price
Unlisted shares: Nominal value or last known valuation
Locked staking crypto: Market value of the token (even if locked)
P2P lending: Principal invested + accrued interest not withdrawn
Always document the valuation method used (screenshots, PDFs, calculations)
📘 Full Example: Portfolio on 12/31/2024
| Asset | Quantity | Price 12/31 | EUR Value |
| AAPL (USA) | 50 | $195.50 | €9,046.30 |
| VWCE (EUR) | 30 | €110.50 | €3,315.00 |
| BTC | 0.5 | €41,250 | €20,625.00 |
| ETH | 5 | €2,100 | €10,500.00 |
| Total Portfolio | €43,486.30 | ||
| IVAFE 0.2% | €86.97 | ||
✅ Best Practice: Keep Evidence
For each December 31, save:
- Broker portfolio screenshots (with visible date)
- Broker statement PDF on 12/31
- Yahoo Finance/CoinGecko price screenshots
- ECB exchange rate screenshots
- Excel sheet with detailed calculations
In case of a tax audit, this evidence is essential to prove correct valuation.
14. Are commissions and fees tax deductible?
Commissions can reduce taxable gains, but it depends on the type of fee.
✅ DEDUCTIBLE - Reduces Taxable Gain
1. Trading Commissions
Commissions paid to buy or sell stocks/crypto ARE deductible.
How it works:
- At purchase: Increase acquisition cost
- At sale: Reduce sale proceeds
Result: Reduces taxable capital gains
Example:
- Buy 100 shares at €10 + €5 fees = Total cost €1,005
- Sell 100 shares at €15 - €5 fees = Total proceeds €1,495
- Capital gain: €1,495 - €1,005 = €490 (not €500)
→ Savings: €10 × 26% = €2.60 less tax
2. Currency Conversion Fees
Generally deductible if directly related to the transaction.
Example: IBKR fee to convert EUR → USD to buy US stocks
3. FX Spread
The bid/ask spread is implicitly deductible (part of the price paid).
❌ NOT DEDUCTIBLE - Does Not Reduce Taxes
1. Custody / Maintenance Fees
Not deductible - General expenses not linked to specific transactions.
Example: €5/month to keep the account open
2. Inactivity Fees
Not deductible - Penalties for not trading.
3. Withdrawal / Wire Fees
Not deductible - Personal expenses to move money.
Example: €10 to withdraw EUR from the broker to your bank
4. Transfer Fees (Securities)
Generally not deductible - Unless included in acquisition cost.
Example: €50 to transfer shares from eToro to IBKR
5. Premium Subscriptions
Not deductible - Unless you are a professional trader with VAT registration.
Example: Bloomberg Terminal subscription, TradingView Pro
⚠️ Special Case: Network Fees (Crypto)
Ethereum gas fees, Bitcoin network fees, etc.:
✓ Deductible: If paid to buy/sell crypto
✗ Not deductible: If paid to transfer between personal wallets
Example:
- Buy 1 ETH at €2,000 + €15 gas fees = Cost €2,015 ✓
- Transfer 1 ETH from Binance to MetaMask (€10 fees) = Not deductible ✗
✅ Tax-Wizard Handles Automatically
Tax-Wizard automatically includes trading commissions in calculations:
- Reads commissions from broker files (IBKR, Revolut, etc.)
- Adds commissions to acquisition cost
- Subtracts commissions from sale proceeds
- Automatically calculates correct capital gains
You do not need to calculate anything manually - everything is already included in the generated reports.
📋 Quick Summary
| Fee Type | Deductible? | Notes |
| Trading commissions | ✓ | Reduces capital gain |
| FX conversion fees | ✓ | If for trading |
| Crypto gas fees | ✓ | Buy/sell only |
| Custody fees | ✗ | General expenses |
| Inactivity fees | ✗ | Penalty |
| Withdrawal fees | ✗ | Personal expenses |
| Transfer fees | ✗ | Except special cases |
How much is your time really worth?
Consider the value of your time and the peace of mind that comes with having a reliable and accurate tool to handle your tax reporting
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Premium
All features, for Revolut, Degiro, eToro, XTB, Trading212, Interactive Brokers, Freedom24, Lightyear, Trade Republic, Coinbase, Robinhood Crypto,...
- Support for all brokers and currencies
- Automatic calculation of capital gains
- Report with Acquisitions, Realizations, Dividends, and Interest
- Open positions report and statistics
- Transaction and dividends statistics
- Export Open Positions to Yahoo Finance
Business
All premium features, for accountants, financial advisors, tax consultants, or other professionals and companies wanting to use Tax-Wizard for multiple clients.
- Support for all brokers and currencies
- Automatic calculation of capital gains
- Report with Acquisitions, Realizations, Dividends, and Interest
- Open positions report and statistics
- Transaction and dividends statistics
- Export Open Positions to Yahoo Finance
⚠️ Important Disclaimer
Tax-Wizard is a support tool and does NOT replace professional advice. We do not guarantee the accuracy of complex tax calculations. You are solely responsible for your tax return.
Italian tax law is complex. We strongly recommend:
- - Consult a qualified accountant
- - Verify all calculations independently
- - Understand your specific tax situation
- - Keep track of all transactions
Always verify with the Italian Tax Agency and professional advisors.
Resources and Sources
Official Resources
Crypto Tax Guides
General Tax Guides
IVAFE & Wealth Tax
2025 Budget Law
International Guides
The information in this guide is for informational purposes only. Always consult a qualified accountant for your specific situation.