RW 2025 Form: Tax obligations, new features, cryptocurrencies

Completing section RW in the Individual Income Tax return is a fundamental tax obligation for all taxpayers residing in Italy – regardless of their nationality – who hold financial assets and real estate abroad . 

When is it necessary to complete section RW?

Section RW must be completed if you hold financial or asset assets abroad, such as:

• Foreign current accounts, bank deposits and securities
• Investments in foreign companies
• Cryptocurrencies held in personal wallets, foreign exchanges, or cold wallets.
• Real estate (apartments, villas, land)

This reporting obligation serves to monitor assets held abroad and to correctly apply the taxes required by Italian law.

How much does it cost?

• For financial assets held abroad without the assistance of a resident intermediary, the IVAFE (Tax on Financial Assets Held Abroad) is due at a rate of 0.2% per year of their value. market value. For foreign current accounts with an average balance exceeding 5,000 euros, a minimum fixed amount of 34.20 euros per year is required.
• The IVIE (Tax on the Value of Foreign Real Estate) applies to properties held abroad at the rate of 1.06% per year (until 2023 it was 0.76%) calculated on the cadastral value or the purchase value of the property.

Cryptocurrencies: tax monitoring, taxation, revaluation

Cryptocurrencies must be declared annually in section RW of the individual income tax return and, since 2023, are subject to IVAFE (a tax on net assets) at a rate of 0.2% on their value as of December 31 of the tax year. From 2025, tax regulations will abolish the €2,000 exemption threshold for capital gains from cryptocurrencies, which previously did not need to be declared if below this amount. 

Capital gains from the sale of cryptocurrencies  must be declared in section RT of the Income tax return if not managed by Italian intermediaries acting as tax withholding agents. The tax on capital gains from the sale of cryptocurrencies and similar transactions  will increase from the current 26% to 33% starting in 2026.

For those who have not violated the monitoring obligations, it is possible, by 11/15/2025, to exceptionally proceed with the tax revaluation of cryptocurrencies held on 01/01/2025, paying a substitute tax of 18% on the revalued amount, in order to reduce future taxation, especially in view of the increase in capital gains tax to 33% in 2025. The substitute tax can be paid in 3 equal annual installments.

Taxation of interest on foreign financial assets

Interest earned on foreign securities, bank deposits, or life insurance policies held abroad is taxed as capital income at a rate of 26% . If this interest is not subject to withholding tax by a resident intermediary, it must be declared in section RM of the tax return form, with the possibility of obtaining a tax credit for taxes already paid abroad, thus avoiding double taxation.

Voluntary disclosure for declaration omissions

In recent years, following the increased efficiency in the exchange of information between countries, compliance letters from the Italian Revenue Agency, inviting careless or unaware taxpayers to fulfill their declaration obligations, have become increasingly frequent.

In the event of omissions or errors in completing the RW section for previous years, it is often not advisable to wait for notification of such communications, but to act in advance to regularize one's position by making use of the institute of  Voluntary disclosure . This procedure allows for the rectification of omissions by paying the taxes due, increased by reduced penalties.

Risks and penalties for late or incomplete completion.

The penalty for violating monitoring obligations.  resulting from the omission or incorrect completion of section RW is imposed: 

• a fixed amount of 258.00 euros if the return is filed within 90 days of the original deadline (late filing);
• as a percentage ranging from 3% to 15% of the undeclared amount (declaration omitted);
• in percentage terms, increased from 6% to 30% in the case of blacklisted countries (statement omitted). 

The penalty for non-payment of IVIE/IVAFE taxes related to a failure to file a tax return is normally 25%.

Conclusions

The 2025-2026 period marks a crucial time for monitoring and taxing foreign financial assets, with particular attention to cryptocurrencies. Proper management of reporting obligations, along with adequate tax planning, is essential to avoid penalties and optimize one's international tax position.

For assistance in completing the RW section of your tax return or for specific advice on the tax revaluation of cryptocurrencies, we are available to support you with customized solutions.