Understanding NFT Tax Obligations in Italy
Italy treats NFTs (Non-Fungible Tokens) as taxable digital assets under existing cryptocurrency regulations. Whether you’re an artist, investor, or trader, you must report NFT-related profits to Agenzia delle Entrate (Italian Revenue Agency). The tax treatment depends on:
- Your activity frequency (occasional vs professional)
- Profit amount
- Holding period
- Type of transaction (sale, auction, or royalty income)
Types of NFT Profits and Tax Rates
1. Capital Gains (Plusvalenze)
Applies to occasional traders:
- 26% flat tax on profits exceeding €2,000 annually
- Applies to assets held <12 months
2. Business Income (Reddito d’Impresa)
For professional traders/creators:
- Progressive IRPEF rates (23%-43%)
- IVA (VAT) may apply at 22% for commercial activities
Step-by-Step Guide to Reporting NFT Profits
- Calculate Total Profit
Sale Price – (Minting Costs + Acquisition Cost + Gas Fees) - Determine Tax Category
Use Redditometro indicators if uncertain about occasional/professional status - Complete Tax Forms
- Form RM for capital gains
- Form RT for business income
- Form RW for foreign wallet holdings (>€15k)
- Submit by Deadlines
- June 30: F24 payment
- July 31: Tax return submission
Required Documentation
- Blockchain transaction history
- Exchange/wallet statements
- Invoices for NFT creation costs
- Proof of foreign platform tax compliance (DAC7)
4 Common Reporting Mistakes to Avoid
- Assuming small transactions are tax-free
- Mixing personal and business wallets
- Forgetting to convert crypto profits to EUR using ECB rates
- Omitting foreign platform transactions
NFT Tax FAQ
Q: Are airdropped NFTs taxable?
A: Yes – taxed as miscellaneous income at marginal rates when sold.
Q: How to report NFT losses?
A: Capital losses can offset gains for 4 years; business losses deduct from total income.
Q: Is metadata/storage taxation different?
A: No – entire NFT value is considered regardless of linked content type.
Q: Penalties for underreporting?
A: 90-180% fines + 0.2% monthly interest on unpaid taxes.
Always consult a commercialista specializing in crypto assets for personalized advice.
