Capital Gains Tax (Imposta Sostitutiva): Who Qualifies and What You Get
Learn how the flat tax rate applies to your financial asset profits and how you can use losses to offset future gains in Italy.
This scheme establishes a standardized tax rate applied to the profits you make from trading financial assets.
Who it's for
This applies to any resident trader who makes a profit from their financial asset transactions.
What you get
You receive a simplified, flat tax rate on your financial gains, which helps standardize how your trading profits are taxed.
What it costs you
Most financial gains are subject to a flat rate of 26%. However, if your gains come from government bonds, the rate is lower at 12.5%.
The catch to know
The tax is only applied to your net gain. This means you can use "minusvalenze" (losses) to offset your "plusvalenze" (gains). If you have a net loss, you can carry that loss forward to offset profits for the next 4 years.
How to apply
- Track all your financial gains and losses throughout the year.
- Calculate your net position by subtracting your losses from your gains.
- Report the final amount when filing your annual tax returns.
- Consult with a tax professional to ensure all offsets are correctly applied.