How to Report Staking Rewards in Italy: A Complete Tax Guide

Understanding Staking Rewards and Italian Tax Obligations

Staking rewards are earnings generated from participating in blockchain networks that use proof-of-stake (PoS) mechanisms. In Italy, the Agenzia delle Entrate (Italian Revenue Agency) treats these rewards as taxable income. Whether you stake cryptocurrencies like Ethereum, Cardano, or Solana, you must declare these earnings in your annual tax return.

Step-by-Step Guide to Reporting Staking Rewards

1. Determine Your Taxable Income

• Fair Market Value: Calculate rewards in EUR using exchange rates at the time of receipt.
• Income Classification: Staking rewards are taxed as “other income” (redditi diversi) at a 26% flat rate.
• €2,000 Threshold: No tax is owed if total crypto earnings (including staking) remain below €2,000 annually.

2. Prepare Required Documentation

• Transaction history from exchanges/wallets
• Proof of EUR conversion rates
• Records of staking reward dates and amounts

3. Complete Tax Form RW

All foreign crypto holdings must be declared in Section II of Form RW, even if rewards come from Italian platforms. Include:

• Total value of staked assets
• Jurisdiction of crypto platforms used

4. Report Income in Quadro RT

Declare staking rewards under:

• RT21: For rewards from Italian platforms
• RT22: For rewards from foreign platforms

Deadlines and Penalties

• November 30: Provisional tax payment (if applicable)
• September 30: Final tax return deadline
• Penalties: 120-240% of unpaid taxes for intentional evasion; 90-180% for negligence

Frequently Asked Questions (FAQ)

Are staking rewards taxed if I don’t sell them?

Yes. Italy taxes rewards at acquisition, regardless of whether you convert to fiat or hold the crypto.

How do I report rewards from foreign platforms?

Use Quadro RT22 and include platform details in Form RW. Convert rewards to EUR using ECB exchange rates.

Can I deduct staking-related expenses?

Yes. Valid deductions include:

• Hardware costs
• Electricity expenses
• Node maintenance fees

What if I used decentralized protocols?

You must still report rewards. Track transactions using blockchain explorers and wallet histories.

Is there a tax treaty protection?

Italy’s double taxation agreements don’t cover crypto staking. You pay Italian taxes regardless of platform location.

Best Practices for Compliance

1. Use certified portfolio trackers like CoinTracking or Koinly
2. Maintain separate wallets for staking activities
3. Consult a commercialista (tax accountant) specializing in crypto