User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Wikitoro Team Written by Wikitoro Team
Wikitoro fact checker Mike Druttman Fact checked by Mike Druttman
Updated Feb, 2024

The eToro Tax Report for Italy residents is a document generated based on an individual's annual trading activity on the eToro platform, structured in accordance with local Italian tax guidelines. This report is designed to assist Italian residents in fulfilling their tax obligations.

Open an account!

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Introduction

In today's digital age, where online trading platforms like eToro have become increasingly popular, understanding tax obligations is crucial. For Italian residents, navigating these waters can be particularly challenging.

In this article, I'll discuss the fine details of the eToro Tax Report, a vital tool for Italian traders, to help you grasp its importance and how it aids in fulfilling tax responsibilities.

 

What is This Tax Report?

It is a comprehensive document tailored for Italian residents who engage in trading activities on the eToro platform. It serves as a crucial aid in tax reporting, ensuring compliance with Italy's specific financial regulations and tax laws.

This report meticulously details an individual's financial transactions over the year, including dividends, interest, and capital gains. It's structured to align with Italy's tax reporting requirements, making it an invaluable resource for accurate and efficient tax filing.

 

Tax Reporting Period and Currency

The report covers the standard tax year, from January 1st to December 31st, and presents all financial figures in Euros (EUR). This uniformity simplifies the process for Italian residents, aligning with the local currency and fiscal year.

 

Filing Deadlines and Report Languages

For electronic submissions, the deadline is November 30th, while paper submissions have a deadline of June 30th under specific conditions. The report's availability in both Italian and English caters to a broad range of users, ensuring clarity and accessibility.

 

Methodology for Tax Calculation

The report employs the Last In, First Out (LIFO) method for most assets, with a specific approach for investment funds. Understanding this methodology is key to comprehending how the report calculates potential tax liabilities.

 

Guidance on Completing Official Tax Forms

What I liked about this tax report is that it's particularly useful for filling out the “Modello Redditi Persone Fisiche,” Italy's official tax form. It provides detailed guidance on completing various sections, making the tax filing process more straightforward.

 

Wealth Tax (IVAFE) Calculation Details

For Italian traders, understanding the calculation of the wealth tax (IVAFE) for securities and cash accounts is crucial. The report provides clear instructions on this, aiding in accurate tax computation.

 

How to Access Your Tax Report

To download your annual Tax Report, if you are eligible, please follow these streamlined steps:

  1. Access the Platform: Log in to your eToro account and navigate to the “Settings” section.
  2. Account Tab: In the Settings menu, click on the “Account” tab.
  3. Locate Documents: Scroll down to the “Documents” section where you will find the "Account Statement."
  4. View Report: Click on "View" and then specify the date range you wish to see in the report.
  5. Download Report: Your account statement will be displayed. Choose to download the report in either XLS or PDF format, based on your preference.

 

Conclusion & Key Takeaways

  • The eToro Tax Report is an essential tool for eToro Italy residents trading on the platform, designed to assist in tax reporting.
  • It provides detailed financial information in a structured format that aligns with Italy's tax laws.
  • Understanding the report's content and methodology is crucial for accurate tax filing.
  • While the report is informative, seeking professional tax advice is recommended for compliance and accuracy.

It's important to note that while the eToro Tax Report is a comprehensive tool, it is not a substitute for professional tax advice. I highly advise that you consult with a tax advisor to ensure its compliance and accuracy.

 

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Wikitoro author Wikitoro Team About Wikitoro Team

The Wikitoro Team is a dynamic group of five seasoned eToro traders who have been actively using the platform since 2018. As pioneers in establishing the Wikitoro wiki site, we are dedicated to ensuring the accuracy and reliability of the information we provide. Our team regularly verifies data and content from our authors and contributors, taking turns to meticulously review each piece. Our commitment is to offer our readers factual and precise information, reflecting our extensive experience and deep understanding of the eToro platform.

Read More
wikitoro author strip image

76% of retail investor accounts lose money