Tax Report for Italian Residents

etoro doesn’t provide tax advice. Any data reported in the tax report is strictly for informational purposes only and it isn’t intended as a tax declaration or as a substitute for legal advice. We strongly advise you to verify the tax report with your tax advisor.

On this page, you will find information about tax reporting in Italy. etoro Club members living in Italy can generate a tax report based on the previous financial year’s investment activity on the etoro platform, structured in accordance with local tax guidelines.

Select a question to go directly to that topic.

1. What should I be aware of when reporting taxes in Italy?
2. What does the Italian Revenue Agency consider taxable?
3. How are capital gains calculated in Italy?
4. Why are the capital gains between the etoro account statement and the tax report different?
5. What are the required Italian tax forms and where can I download them?
6. Can I use the etoro tax report as a basis for filling out official tax forms?
7. Quadro RL
8. Quadro RM
9. Quadro RT
10. Quadro RW

What should I be aware of when reporting taxes in Italy?

• The tax year is from 1 January to 31 December.
• The report is submitted electronically but the paper format is accepted under special circumstances.
• The deadline for the tax assessment is 30 November electronically, and 30 June for the paper format.
• The reporting currency is Euro (EUR).
• The reporting languages are Italian (IT) and English (EN).

What does the Italian Revenue Agency consider taxable?

• Income: Dividends, interest, other income and capital gains from investment funds
• Capital Gains: Capital gains from any assets and fees/capital losses from investment funds
• Wealth: The tax (IVAFE) due is calculated as follows:
• For securities, based on the market value of the financial assets as of 31 December of each year or as of the last day of the holding period (except precious metals and cryptocurrencies, which are exempt but must still be reported for monitoring purposes).
• For cash accounts, an annual fixed amount of 34.20 Euros is due for each account with a total annual average balance higher than 5,000 Euros. If the account was opened or closed during the reporting period, the fee is adjusted to reflect the number of days the account was open.

How are capital gains calculated in Italy?

The capital gain/loss on an asset can be calculated by subtracting the cost basis (purchase price) and any associated fees of an asset from the value of the asset when it was sold (fees are not deductible for crypto as of financial year 2023).

If many positions are held on the same asset, bought at different prices, there are several methods for working out the cost basis. In Italy, the method used varies based on the type of asset.

• For investment funds, the weighted average is used.
• For everything else, the ‘last in, first out’ (LIFO) method is used.

For details on these methods, visit our article on cost basis.

Why are the capital gains between the etoro account statement and the etoro tax report different?

You may notice differences between your etoro account statement and your etoro tax report. These can be attributed to the different methods used to calculate capital gains.

• Account statement reporting method: Specific lot identification
• Tax report reporting method: LIFO and weighted average

Additionally, to calculate the financial data presented in the tax report, the values of the positions are converted from USD to EUR at the time of position opening and closing. This conversion process may result in a further difference in the end value between the account statement and the tax report.

What are the required Italian tax forms and where can I download them?

The following sections of the official tax form Modello Redditi Persone Fisiche must be completed:

• Quadro CE: Foreign withholding tax paid
• Quadro RL: Incomes taxed at individual tax rate
• Quadro RM: Incomes taxed at substitute tax rate
• Quadro RT: Capital gains
• Quadro RW: Wealth Statement

The official tax form can be downloaded here from the Italian Revenue Agency’s website.

Can I use the etoro tax report as a basis for filling out official tax forms?

In this section, we will go through the official forms one by one, showing where to enter information found on your etoro tax report.

The highlighted sections from the tax report screenshots correlate to the highlighted sections in the tax forms screenshots.

The information on this page should not be used as a guide on how to fill in your tax return. Please review the official notes on the tax forms and consult your independent tax advisor for questions.

Quadro RL

etoro Tax Report

Each line in the table displayed in the Quadro RL section corresponds to a single income, and each group of incomes with the same income type (Tipo reddito – 1) has its own subtotal.

Official Form

The official tax form can be completed based on the subtotals per income type (in the example above, one line for type 4 and one line for type 5). The below image is an example of one line (entry). On the form, there are multiple lines to be used as needed. In this example, the client would fill out two (one for type 4, one for type 5).

Quadro RM

etoro Tax Report

In the report, we display two tables in the Quadro RM section: one for the incomes reported in RM12 and one for RM13. In each table, there is one line for each single income.

In RM12, each group of incomes with the same income type (Tipo – 1), country code (Codice Stato estero – 2) and tax rate (Aliquota – 4) has its own subtotal, to be filled out in the official form.

In RM13, only the total is needed to fill out the tax form, as highlighted in the example below.

Official Form

The official tax form can be completed as follows:

The RM12 section is filled out using the subtotals shown in the table. Therefore, in the example above, the taxpayer must enter 4 lines:

• income type A – Country 009 – rate 26
• income type B – Country 008 – rate 26
• income type B – Country 067 – rate 26
• income type H – Country 071 – rate 26

The below image is an example of one line.

The RM13 section is filled out using the total shown in the table. Therefore, in the example above, the taxpayer must enter one line for RM13.

Quadro RT

etoro Tax Report

The table in the Quadro RT section of the report corresponds exactly to the lines of the tax form.

Official Form

For reconciliation purposes, in the report, you can also find two summary tables with the breakdown of the amounts by instrument type.

Quadro RW

etoro Tax Report

In the report, we display two tables for the Quadro RW section: one for securities and one for account-like instruments (cash accounts and money markets).

For securities, each group of instruments with the same asset type (Codice individuaz. bene – 3) has its own subtotal, which can be used to complete the tax form. The values shown in the columns with a number are those needed to complete the tax form.

Official Form

The official tax form can be completed as follows:

• For securities, one box per asset type (Codice individuaz. bene – 3) based on the subtotals shown in the table. Therefore, in the example above, the taxpayer must enter 3 boxes: one box for asset type 2, one box for asset type 3 and one box for asset type 4).
• For cash accounts, one box per each single cash account. Therefore, using the example tax report above, the taxpayer must enter 3 boxes, one for each cash account.

The screenshot below shows an example of one box from the official report.