How capital gains tax works in Italy
Italy taxes residents on worldwide capital gains and non-residents on Italian-source gains. For most financial assets, the default substitute tax is 26%, usually withheld by the broker or intermediary when possible.
Government bonds and certain equivalent public securities are taxed at 12.5%. Real estate gains are usually exempt after five years of ownership, and an earlier sale can still be exempt if the property was used as a principal residence for most of the ownership period.
Crypto gains were tightened from the 2026 tax period and are generally taxed at 33%, with the old EUR 2,000 threshold removed. Gains on euro-denominated e-money tokens remain on the 26% track.
Tax rates at a glance
- Capital gains tax
- 26%Standard rate
- Government bonds
- 12.5%
- Real estate gains
- 0% / 26%
- Crypto gains
- 33%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersTradersHigh earnersFamily offices
Watch out for
- The 26% rate covers many shares, funds and other securities, but not everything. Government bonds, real estate and crypto have separate rules.
- Keep acquisition and disposal records. Foreign tax authorities, brokers and banks often want cost basis proof even where Italy does not tax a transaction the same way.
- Corporate disposals can fall into the participation exemption regime, so company-level gains may be taxed very differently from personal gains.
- The 2026 crypto change is real and material, so do not use old 26% assumptions for 2026 disposals.
Frequently asked questions
Does Italy tax capital gains?
Yes. Italy generally taxes capital gains at 26%, with lower or separate rates for certain assets such as government bonds and different rules for real estate.
Are crypto gains taxed in Italy?
Yes. From the 2026 tax period, crypto gains are generally taxed at 33% in Italy, with the euro stablecoin exception kept at 26%.
Are property gains always taxed?
No. A sale is usually exempt after five years of ownership, and a principal residence sale can also be exempt in some cases even if owned for less than five years.