Italy Prediction Market Taxes

How Italy Taxes Prediction Markets

In Italy, prediction market gains are taxed at a 26.00% rate. Losses can offset gains.

Report through Agenzia delle Entrate. Filing deadline: November 30.

26.00%

Flat rate on net gains

How to File

1. Access your pre-compiled tax return (dichiarazione precompilata).
2. Report capital gains in Quadro RT of Modello Redditi PF.
3. Flat 26% tax on net capital gains (imposta sostitutiva).
4. Losses offset gains; unused losses carry forward up to 4 years.
5. Convert USD to EUR using ECB rate on settlement date.
6. File by November 30.

Filing deadline: November 30

How are prediction markets taxed in Italy?

Capital gains from financial instruments are taxed at a flat 26% rate (imposta sostitutiva). Prediction market gains generally fall under this category.

Can I deduct losses?

Yes. Capital losses can offset capital gains. Unused losses carry forward for up to 4 years.

Do I need to report foreign accounts?

Yes. Italian residents must report foreign financial accounts in Quadro RW (IVAFE declaration). This applies to Polymarket wallets and foreign exchange accounts.