Italy
26 percent flat tax on capital gains, dividends, and interest, regardless of holding period. Crypto gains are taxed considerably higher from 2026, at 33 percent, than traditional securities.
Italy taxes investment income from stocks, ETFs, funds, and bonds at a uniform flat rate of 26 percent, the Imposta Sostitutiva. This substitute tax applies regardless of whether you held a position for a day or ten years, there's no advantageous holding period.
An exception applies to Italian and certain foreign government bonds, which get a reduced rate of 12.5 percent.
For crypto assets, the situation tightened considerably in 2026. Through 2025, the same 26 percent applied, along with an allowance of €2,000 a year. Since January 1, 2026, the rate stands at 33 percent, and the allowance has been eliminated entirely.
Anyone trading through a foreign broker additionally pays the IVAFE, an annual wealth levy of 0.2 percent on the average account value, since foreign accounts don't automatically withhold Italian tax.
The Imposta Sostitutiva has, since the 2014 reform, replaced the previous two-tier taxation of 20 and 26 percent with a uniform 26 percent rate on capital gains from stocks, bonds, fund units, derivatives, and other financial instruments. The reduced 12.5 percent rate for Italian and listed foreign government bonds remains unaffected.
The 2026 budget law raises taxation on crypto gains from 26 to 33 percent while simultaneously eliminating the previous annual allowance of €2,000. Euro-pegged stablecoins can, under certain conditions, still qualify for the lower 26 percent rate.
At domestic banks and brokers, the tax gets automatically withheld at source, the so-called regime amministrato. Anyone using a foreign broker has to declare the income themselves on their tax return, the regime dichiarativo, and additionally pay the 0.2 percent IVAFE on the average annual account value.
Summary
- 26 percent flat tax on most securities gains, with no holding-period benefit.
- Crypto gains have been taxed at 33 percent since 2026, with the allowance eliminated.
- Foreign accounts additionally pay a 0.2 percent annual wealth levy.
Did you get it?
What's the standard capital gains tax rate in Italy?
26 percent, regardless of holding period.
What changed for crypto gains in 2026?
The rate rose from 26 to 33 percent, and the previous €2,000 allowance was eliminated entirely.
What extra levy do foreign-broker users pay?
The IVAFE, an annual wealth levy of 0.2 percent on the average account value.
Sources and further reading
- Legge di Bilancio 2025 (Law No. 207/2024), raising the crypto tax to 33 percent from 2026 View source ↗
- Agenzia delle Entrate, explanatory notes on the 26 percent Imposta Sostitutiva on investment income