TAXATION ON
MINED BITCOINS
Index:
1) Taxation
2) Production Cost
3) Capital Gain
4) Example
5) Tax Declaration
Taxation
Bitcoin mining is taxed on the capital gains resulting from the difference between the sale price and the production cost.
Production Cost
The production cost of mined Bitcoins includes all expenses incurred to generate the cryptocurrency. The Italian Revenue Agency considers:
- Electricity costs → Main mining expense.
- Hardware depreciation → Spread over the useful life of ASICs (e.g., 6-8 years).
- Maintenance & cooling costs → If significant.
Capital Gain Calculation
When selling mined Bitcoin, taxable income is calculated as:
Capital Gain = Sale Price - Production Cost
Example
Mining period: 6 months
Machine cost: €30.000
Electricity cost: €40.000
Mined: 1 BTC
BTC sale value: €70.000
Calculations:
Hardware (6 months): €30.000 / 6 × 0,5 = €2.500
Total production cost: €2.500 + €40.000 = €42.500
Selling value: € 70.000 x 1 = € 70.000
Capital gain: €70.000 - €42.500 = €27.500
Tax due (26%): €27.500 × 26% = €7.150
Tax Declaration
Quadro RW:
Required to declare unsold Bitcoin holdings (asset monitoring).
Modello Redditi PF:
Report capital gains in section RT (Redditi diversi).
The 26% tax rate is applied automatically.