What is Airdrop Income in the Crypto World?
Airdrops refer to the free distribution of cryptocurrency tokens or coins to wallet addresses, often used by blockchain projects for marketing, community building, or governance decentralization. In Italy, receiving these tokens constitutes income if they hold monetary value. Unlike mined or traded crypto, airdrops are “passive” acquisitions—but they’re not tax-free. The Agenzia delle Entrate (Italian Revenue Agency) treats them as taxable miscellaneous income under the “other income” (redditi diversi) category once converted to fiat or used.
Is Airdrop Income Taxable in Italy?
Yes. According to Italian tax regulations (TUIR, Article 67), airdrop tokens are subject to income tax when they’re sold, exchanged, or utilized for goods/services. Key principles include:
- Tax Trigger: Tax applies upon disposal (sale/trade), not receipt.
- Tax Rate: Capital gains are taxed at 26% under the “capital income” regime.
- Valuation: Income = Disposal value (in EUR) minus acquisition cost (€0 for free airdrops).
- Exemption: Gains under €2,000/year from all crypto activities are tax-free (Legge di Bilancio 2023).
How to Report Airdrop Income in Italy: Step-by-Step Guide
Follow this process to declare airdrop earnings correctly:
- Track Transactions: Record dates, token amounts, and EUR values at receipt and disposal using tools like CoinGecko or Blockpit.
- Calculate Gains: For each disposal:
Gain = (Sale Price × Tokens Sold) – (€0 Acquisition Cost). - Complete RW Form: In your annual tax return (Modello Redditi PF), fill Section RW (Foreign Assets). Declare held crypto as of December 31st, even unsold airdrops.
- Report Gains in RT Form: In Section RT, Box 8 (capital income), enter total taxable gains after deducting the €2,000 exemption.
- Pay Tax: Settle the 26% tax via F24 form by June 30th following the tax year.
Common Mistakes to Avoid
- Ignoring Small Airdrops: Even minor tokens must be tracked—they accumulate.
- Misvaluing Tokens: Use EUR market rates at disposal time (not receipt).
- Overlooking Form RW: Failure to declare holdings risks penalties up to 3–10% of asset value.
- Confusing with Gifts: Airdrops aren’t “gifts” under Italian law—they’re always taxable upon use.
Frequently Asked Questions (FAQ)
Q: Do I pay tax if I hold airdropped tokens without selling?
A: No tax until disposal. However, you must declare holdings in Form RW annually.
Q: How is the value of airdrops calculated for tax purposes?
A: Use the token’s market value in EUR at the moment of disposal (sale/exchange).
Q: Are DeFi airdrops treated differently?
A: No—all airdrops follow the same tax rules, regardless of platform.
Q: What if I receive airdrops worth less than €2,000?
A: The €2,000 exemption applies to total crypto gains, not per-airdrop. If total gains are under €2,000, no tax is due.
Q: Can I deduct transaction fees?
A: Yes—exchange or gas fees reduce taxable gains. Document these costs.
Q: What penalties apply for non-compliance?
A: Undeclared gains face 120–240% of owed tax in penalties plus interest. Inaccurate RW filings incur fines up to €258.
Always consult a tax professional specializing in Italian crypto regulations, as laws evolve. Proper reporting avoids audits and ensures peace of mind in Italy’s dynamic digital asset landscape.
