How to do your eToro crypto taxes in 2024

eToro, founded in 2007, is a prominent social trading and investment platform that has revolutionized the way people trade and invest in financial markets. It is widely recognized for its user-friendly interface and the unique feature of social trading, which allows users to follow and copy the trades of experienced investors. This is also the feature of eToro that can make taxes so daunting!

Copy trading can rack up a large number of trades throughout the year which includes crypto and traditional stocks. Fear not, there are automated software platforms that can help you with your taxes, especially useful if you participated in copy trading. We'll guide you through it in this article.

What transactions are taxable on eToro?

This can depend on the asset type you have been trading (crypto, stocks, CFDs, etc). It is true regardless of whether it is a copy trade or a transaction your decided to make proactively.

The following is a list of transactions on eToro that explains how a typical tax authority will view them.

• Buying Crypto: Generally, purchasing cryptocurrency isn't a taxable event. However, it's crucial to record the purchase price. This information is key for accurately calculating potential profits or losses when you decide to sell.

• Selling Crypto: In most countries, selling cryptocurrency is typically a taxable event, with few exceptions.

• Trading Crypto-to-Crypto: Many countries mandate declaring taxes on the crypto you dispose of during such trades. Nonetheless, there are exceptions, like France, where this might not be required.

• CFDs: Contracts for Difference are often taxable when they are closed and a profit or loss is realized. The underlying instrument is less important when it comes to how to declare the outcome.

• Staking: Staking rewards are usually taxable. The tax is computed by summing up the total value of the staked assets in your local currency over the year.

• Dividends: Like staking, earning dividends is typically a taxable event. The total value of interest earned throughout the year, converted to your local currency, is used for tax calculations.

• Withdrawals & Deposits: Moving funds between wallets or exchanges you own is generally not taxable. However, if transaction fees are paid in cryptocurrency, that could constitute a disposal event for the amount of the fee.

• Receiving Airdrops: Obtaining crypto through airdrops is often not taxable in itself, only when you decide to dispose of the airdrop. However, this can differ quite a bit between jurisdictions.

Although the above are guidelines, to be more informed ensure to read the crypto tax guide relevant to your country and jurisdiction.

How to export your eToro transaction history

To determine if you need to declare taxes on your crypto transactions, it's essential to gather all your transaction data first. For eToro users, the most efficient method is to download the platform's xlsx file, which contains all the necessary transaction details for tax calculation purposes.

File import

You can import transactions into Divly by downloading and importing a XLSX file. Make sure to download the XLSX file every time you want to include the latest transactions.

1. Sign in to eToro.

2. Click on the Settings in the sidebar.

3. Click on the the box Account.

4. Next to Account Statement, click the button View.

5. Select the time frame so it includes ALL your transactions, then click Create.

6. In the top right corner, click the xls icon. The file will download.

7. Drag and drop the XLSX file to where it says Upload CSV. Divly will import the transactions.

How to calculate and declare your eToro taxes (including crypto)

Calculating your crypto taxes can be a complex task. While you can manually calculate them using Excel, it’s often more efficient and accurate to seek professional help. Tax lawyers offer expert advice but can be costly. Alternatively, a crypto tax platform like Divly provides a self-service option that is significantly more affordable (see pricing).

After importing your transactions from eToro and other wallets or exchanges using the earlier mentioned method, Divly automatically calculates your taxes according to the specific rules of your country. Divly imports cryptocurrency transactions and CFDs from eToro.

To complete the process, download your tax report from Divly, which includes detailed instructions for declaring your taxes. Explore sample reports from various countries supported by Divly, guiding you through the declaration process from start to finish.

Does eToro report to the tax authority?

If not already, they will be reporting information on your trading activity soon. Particularly relevant for EU citizens in light of the upcoming DAC8 directive, which mandates exchanges offering crypto to report EU client information to tax authorities starting January 1, 2026.

If you’ve neglected to declare crypto taxes in previous years, it’s not too late to address this. Proactively declaring can prevent future penalties, By uploading your past transactions to Divly, you can access tax reports for all previous years. It’s an excellent opportunity to rectify any past undeclared taxes.

Seeking Help and Assistance with Taxes

For queries, consider contacting your local tax authority or hiring a tax lawyer for personalized advice, though this may involve additional costs.

Divly’s team is also ready to assist you. Reach out to our support team through the online chat on our website’s bottom right corner for any help or guidance. Wishing you the best in your tax journey!

Any tax-related information provided by us is not tax advice, financial advice, accounting advice, or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our opinion and not a statement of fact. This article may contain affiliate links.