Cryptocurrencies in Italy: what happens if you don't declare them to the tax authorities?
In recent years, cryptocurrencies have forcefully entered the lives of many Italians. But be careful: even if they are "digital", they are not invisible to the tax authorities.
Let's see together what the Italian law provides and what the penalties are for those who do not declare cryptocurrencies.
Do you have to declare cryptocurrencies in Italy?
Yes, you must declare them if:
You hold them on foreign exchanges (such as Binance, KuCoin, etc.);
The average annual balance exceeds 15,000 euros;
You have carried out sales transactions with earnings exceeding 2,000 euros in 7 consecutive days.
In these cases, you must fill in the RW section in your tax return. Even if you have not sold and have not earned anything, but you hold them on foreign exchanges, the tax authorities still want to know that they exist.
⚠️ What do you risk if you do not declare?
Those who do not declare cryptocurrencies to the tax authorities risk heavy administrative sanctions: From 3% to 15% of the undeclared value; If the exchange is in a blacklisted country (such as tax havens), the penalty increases to 6%-30%.
And if you have sold cryptocurrencies obtaining undeclared profits, you risk further sanctions for tax evasion, in addition to paying the 26% tax on capital gains.
✅ How to fix it? Voluntary disclosure
If you forgot or did not know you had to declare them, you can get in order through the voluntary disclosure procedure. This is a procedure that allows you to self-report with reduced sanctions, avoiding worse problems.
? Conclusion
Many people think that cryptocurrencies are “anonymous”, but in reality tracking is increasingly advanced. The tax authorities are working with exchanges and blockchain analysis tools. Being in order is always a good idea, even for those who aim to build a passive income.
If you have doubts about how to declare them, contact an accountant expert in cryptocurrencies or get information from official sources of the Revenue Agency.
Share this post if it was useful to you or if you know someone who has crypto but... has never done the RW table!
