Investing in Italy: Brokers, ETFs and Taxes in 2026

Last updated: 3 September 2026

Table of Contents

Italy gives resident retail investors broad access to Italian and international shares, bonds, funds and exchange-traded funds. Investors can use traditional banks, Italian investment firms, digital brokers and cross-border European platforms.

The most distinctive feature of the Italian market is not access but tax administration. An Italian intermediary may act as a tax substitute and calculate and pay investment taxes for the client under the regime amministrato. With many foreign brokers, the investor instead uses the regime dichiarativo and remains responsible for the tax return, foreign-asset monitoring and payment of tax.

Italy also offers tax-advantaged Piani Individuali di Risparmio, or PIRs, for qualifying long-term investments. These are rule-based wrappers rather than a general exemption for every investment account.

This guide is intended primarily for individuals who are tax resident in Italy and invest outside a business activity. Citizenship alone does not determine Italian investment taxation. Personal circumstances, residence, the legal form of an instrument and the broker’s contracting entity can change the result.

The Investment Landscape in Italy

Italian residents can generally invest in:

Italian and foreign listed shares;
UCITS ETFs and mutual funds;
Italian, EU and international government bonds;
corporate bonds;
exchange-traded derivatives, warrants and certificates;
managed portfolios, pension products and insurance-based investments; and
CFDs and forex products, subject to the provider’s authorisation and retail safeguards.

The domestic market includes Borsa Italiana and its ETFplus segment, while brokers serving Italy commonly provide access to other European exchanges and major US and Asian markets.

Financial-market conduct and public offerings are supervised principally by CONSOB, while the Bank of Italy supervises banks and performs prudential and other statutory functions. The legal framework includes Italy’s Consolidated Law on Finance, MiFID II, PRIIPs and other EU rules.

Before comparing brokers, estimate the tax on a planned disposal with the Finorum Capital Gains Tax Calculator for Italy. It is an estimation tool, not a substitute for an Italian tax return or professional advice.

Available Brokers for Italy Residents

Availability should always be checked against the provider’s current country list and the legal entity shown in the account agreement. A brand operating in Italy may provide shares through one entity and CFDs through another.

International Investment Brokers

Broker	General availability	Stocks	ETFs	Fractional investing	Main point to verify
Interactive Brokers	Generally available	Yes	Yes	Eligible instruments	Tax reporting remains the client’s responsibility unless expressly stated otherwise
DEGIRO	Generally available	Yes	Yes	Generally no	Markets, fees and Italian tax-report support
Trading 212	Generally available	Yes	Yes	Yes	Invest account versus CFD account
XTB	Generally available	Yes	Yes	Investment-plan functionality may apply	Whether the chosen product is an underlying security or CFD
eToro	Generally available	Selected instruments	Selected instruments	Yes	Ownership, custody and CFD designation for each instrument
Saxo	Generally available	Yes	Yes	Limited/product-dependent	Account entity and Italian tax treatment
Swissquote	Generally available	Yes	Yes	Product-dependent	Contracting entity, custody and fees
Freedom24	Generally available	Yes	Yes	Limited/product-dependent	Investor scheme and tax-reporting responsibility
LYNX	Generally available	Yes	Yes	Eligible instruments	Service model, underlying custodian and tax reporting

Trading.com is intentionally not included in this table. It is a forex and CFD provider rather than a general long-term stock-and-ETF broker for the purposes of this guide; where available, it appears in the dedicated CFD section below.

Interactive Brokers

Interactive Brokers accepts eligible Italian residents and offers access to a large number of exchanges, stocks, bonds, options and UCITS ETFs. Fractional trading is available for eligible securities. Italian residents should check which group entity holds the account, which compensation scheme applies and whether they must file under the declarative tax regime.

DEGIRO

DEGIRO Italy offers shares, ETFs, bonds and exchange-traded products. It commonly provides an Italian-oriented annual tax report, but a report supplied for convenience is not the same as the broker acting as a sostituto d’imposta. The taxpayer remains responsible for checking and filing the figures.

Trading 212

Trading 212 offers an Invest account with shares, ETFs and fractional investing and a separate CFD service. Investors should distinguish clearly between ownership through the Invest account and leveraged exposure through the CFD account.

XTB

XTB Italy provides access to shares and ETFs as well as derivatives. Product availability and the distinction between cash instruments and CFDs must be checked on the order screen and in the relevant disclosure documents.

eToro

eToro offers shares, ETFs and CFDs. The legal nature of a position can depend on the asset, leverage, direction and account entity. Investors should rely on the ticket and product disclosure, not on the brand name alone, to determine whether they acquire an underlying asset.

Saxo

Saxo gives eligible Italian clients multi-market access to shares, ETFs, bonds and derivatives. Clients should verify the contracting entity, custody charges and whether tax is withheld automatically or must be declared personally.

Swissquote

Swissquote provides international-market access to eligible Italian residents. Because the account may be held outside Italy, the residence of the account and consequent Italian reporting and IVAFE obligations require particular attention.

Freedom24

Freedom24 provides access to international equities, ETFs and bonds. Investors should confirm the regulated entity serving Italy, product costs and the investor-compensation arrangement before opening an account.

LYNX

LYNX Italy provides access to international markets through an infrastructure relationship with Interactive Brokers. Investors should check which entity is the contractual custodian and how the annual Italian tax report is prepared.

Domestic Investment Platforms

Italian brokers are attractive to investors who want the intermediary to calculate and withhold tax. The availability of regime amministrato must nevertheless be confirmed for the particular account and tax-residence status.

Provider	Type	Typical access	Tax-administration point
FinecoBank	Italian bank and online broker	Italian and international markets, funds and ETFs	Regime amministrato generally available to eligible Italian residents
Directa SIM	Italian investment firm	Shares, ETFs, bonds and derivatives	Known for support of regime amministrato
Webank	Digital banking and brokerage service of Banco BPM	Italian and international securities	Generally integrated with Italian tax withholding
BG SAXO	Italian investment service	Multi-market securities and derivatives	Verify available tax regime for the chosen account
MEXEM Italia	Italian-facing investment intermediary	Broad international-market access	Verify legal entity and whether service is administered or declarative
Trade Republic	Italian branch/digital broker	Shares, ETFs, bonds and savings plans	Verify current eligibility for Italian tax-substitute service
Scalable Capital	European digital broker with Italian service	Shares, ETFs and savings plans	Verify branch, account terms and current Italian tax handling

FinecoBank

FinecoBank combines banking, brokerage and investment services. Its Italian structure can simplify tax administration for eligible resident clients, but charges and exchange coverage should be compared with specialist brokers.

Directa SIM

Directa is an Italian-authorised investment firm with access to Italian and selected foreign markets. Its administered-tax option is a central reason many Italian residents choose it.

Webank

Webank is Banco BPM’s online banking and investment service. It offers an integrated bank-and-broker relationship and generally handles Italian withholding within the eligible domestic account.

BG SAXO

BG SAXO combines the Italian distribution presence of Banca Generali with Saxo’s trading technology. Investors should verify fees, product coverage and the applicable tax regime in the current contractual documents.

MEXEM Italia

MEXEM Italia provides access to multiple international markets. The investor should confirm the precise contracting entity and should not infer Italian tax-substitute status merely from an Italian-language website or local support.

Trade Republic and Scalable Capital

Trade Republic Italy and Scalable Capital Italy provide digital access to shares, ETFs and recurring investment plans. Branch structures and tax services have evolved, so investors should check the current account agreement and obtain written confirmation of whether the provider acts as a tax substitute for their account.

Traditional Bank Brokers

Traditional banks may suit investors who prefer branch support, a combined current account and securities custody account, or automatic domestic tax handling. They can be more expensive than execution-only online brokers.

Bank or service	Brokerage access	Typical strength	Point to compare
Intesa Sanpaolo	Italian and selected foreign securities through investment services	Large branch network and integrated custody	Trading and custody charges
UniCredit	Securities and investment services	Integrated banking relationship	Online-market range and advice fees
Banco BPM / Webank	Bank brokerage and digital trading	Domestic tax administration	Difference between branch and Webank pricing
BPER Banca	Investment and securities services	Branch-based support	Execution access and recurring custody costs
Banca Sella	Online and branch investment services	Established trading offering	Platform tariff and market-data fees
Banca Mediolanum	Banking, funds and investment services	Adviser-led relationship	Product selection and total ongoing costs

Bank deposits and securities are not the same. Deposit-guarantee coverage applies to eligible cash deposits, not to market losses on shares, ETFs or bonds.

CFD and Forex Brokers

CFDs and rolling spot-forex products are leveraged derivatives. They do not give the investor ownership of the referenced share or ETF. They belong in this separate section, not in the main long-term broker table.

Provider	General availability in Italy	Main point to verify
XTB	Generally available	CFD account versus underlying securities
IG	Generally available	Primarily leveraged trading products
CMC Markets	Generally available	CFD-focused service
Plus500	Generally available	CFD-focused service
Pepperstone	Generally available	Forex and CFD focus
AvaTrade	Generally available	Forex and CFD focus
Admirals	Generally available	Products depend on the serving entity
FP Markets	Verify current onboarding	Entity and cross-border permission
Trading.com	Generally available; verify current Italian onboarding	Forex and CFD service, not ordinary ETF ownership
eToro	Generally available	Identify CFDs on the trade ticket

EU retail measures include leverage limits, margin close-out, negative-balance protection and standardised risk warnings. These safeguards do not remove the risk of rapid loss. Verify the provider in CONSOB’s registers and warnings and read the percentage-loss warning displayed by the provider before opening an account.

ETF Investing from Italy

Italian residents can generally buy the broad UCITS ETF range offered across the European Economic Area. Available categories commonly include:

global, regional and single-country equity ETFs;
developed- and emerging-market ETFs;
government and corporate bond ETFs;
money-market ETFs;
commodity ETCs and other exchange-traded products;
sector, factor, dividend and sustainability-focused ETFs; and
distributing and accumulating share classes.

UCITS is a regulatory framework, not a guarantee of positive returns. Investors should read the fund’s KID, prospectus, costs, replication method, securities-lending policy, currency exposure and index methodology.

Can Italian Residents Buy US-Domiciled ETFs?

Most Italian retail clients cannot newly buy US-domiciled ETFs because the manufacturer normally does not provide the PRIIPs Key Information Document required for an EEA retail sale. This is a product-distribution restriction, not a blanket Italian ban on owning a US ETF.

Professional clients and some other limited situations can differ. An investor may also be able to retain or sell an existing position even where additional purchases are restricted.

European investors therefore commonly use UCITS funds with similar index exposure. A UCITS alternative is not legally or economically identical to the US fund: domicile, index tracking, withholding tax, securities lending, currency, fees and distribution policy can differ.

US-domiciled example	UCITS example with broadly comparable exposure	UCITS ISIN
SPY	iShares Core S&P 500 UCITS ETF	IE00B5BMR087
VOO	Vanguard S&P 500 UCITS ETF	IE00BFMXXD54
QQQ	Invesco EQQQ NASDAQ-100 UCITS ETF	IE0032077012
VT	Vanguard FTSE All-World UCITS ETF	IE00BK5BQT80

These are illustrations, not recommendations or one-for-one substitutes.

Examples of Broad UCITS ETFs

ETF	ISIN	Reference exposure
Vanguard FTSE All-World UCITS ETF	IE00BK5BQT80	FTSE All-World
iShares Core MSCI World UCITS ETF	IE00B4L5Y983	MSCI World
iShares Core S&P 500 UCITS ETF	IE00B5BMR087	S&P 500
Xtrackers MSCI World UCITS ETF 1C	IE00BJ0KDQ92	MSCI World
SPDR MSCI ACWI IMI UCITS ETF	IE00B3YLTY66	MSCI ACWI IMI

Confirm the ISIN and share class before trading. Tickers can vary by exchange and currency.

Tax Treatment of ETFs

The ordinary substitute-tax rate on most fund and ETF income received by an Italian-resident individual is 26%. A reduced effective treatment can apply to the portion attributable to qualifying Italian and certain foreign government securities, which are taxed at 12.5% rather than 26%.

Accumulating ETFs

An accumulating ETF reinvests income inside the fund. The Italian investor normally does not receive a cash distribution, and ordinary taxation generally arises when units are redeemed or sold at a positive difference. Accumulation does not make the final gain tax-free.

Distributing ETFs

Cash distributions from a qualifying fund are generally taxed at 26%, subject to the government-bond component and any applicable foreign-source considerations.

The ETF Loss Asymmetry

This point is frequently misstated in simplified guides. Under the Italian classification used for collective investment undertakings:

positive ETF proceeds, including distributions and positive disposal differences, are generally redditi di capitale; but
a negative difference on disposal is generally a reddito diverso di natura finanziaria.

Consequently, an ETF sale loss can generally offset eligible redditi diversi gains, such as qualifying gains on shares, certificates or derivatives, but it cannot directly offset ETF distributions or future positive ETF proceeds classified as redditi di capitale. An eligible capital loss can normally be carried forward through the following four tax periods if correctly recorded or declared.

Government-Bond Component

The 12.5% rate applies to qualifying public debt rather than indiscriminately to every bond. Where a fund or ETF holds qualifying government securities, the intermediary applies the statutory allocation mechanism to the eligible portion. Investors should not calculate the entire bond ETF at 12.5% merely because its name contains “government bond”.

Opening an Investment Account

1. Choose the Tax-Administration Model

Before comparing headline commissions, establish whether the account supports:

regime dichiarativo — the investor reports taxable transactions and pays tax through the return;
regime amministrato — an eligible intermediary calculates and withholds substitute tax as disposals occur; or
regime gestito — a qualifying discretionary manager taxes the annual net accrued portfolio result under the managed-savings rules.

The statutory framework is contained principally in Legislative Decree No. 461 of 21 November 1997. “Italian website”, “Italian tax report” and “Italian branch” do not by themselves prove that an account is in regime amministrato.

2. Compare the Full Cost

Consider trading commissions, FX conversion, custody, exchange and market-data fees, ETF savings-plan costs, inactivity charges and transfer-out fees. Also value the administrative cost of preparing a declarative return.

3. Prepare Identification Documents

Brokers usually request:

a passport or national identity card;
proof of address;
the Italian codice fiscale;
a bank account in the client’s name;
tax-residence declarations; and
information about investment knowledge, objectives and source of funds.

4. Verify the Provider

Check the exact legal entity, supervisory authority, register entry, client-asset arrangements and investor-compensation scheme. A familiar trading name is insufficient.

5. Keep Records

Retain confirmations, statements, FX data, distributions, withholding-tax records, transfers and annual reports. Investors moving securities between brokers should obtain cost-basis and certified-loss information before closing the old account.

Taxes for Investors in Italy

General 26% Rate

For individuals outside a business activity, most dividends, interest, fund proceeds and gains on ordinary financial assets are subject to a 26% substitute tax. The Italian Revenue Agency’s guidance on financial capital gains confirms the general 26% rate for financial redditi diversi covered by Article 67 of the Income Tax Code.

The rate is not universal. Qualifying Italian government bonds and eligible sovereign or equivalent public securities receive 12.5% treatment. Individual instruments, non-qualified participations, business assets, pensions, insurance products and carried interests can follow different rules.

Use the Italy Capital Gains Tax Calculator for an initial estimate, then reconcile the result with the applicable regime and official return instructions.

Dividends

Dividends received by a resident individual outside a business are generally taxed at 26%. An Italian intermediary may apply the substitute tax. A foreign dividend can first suffer withholding in its source country; treaty relief and any Italian credit depend on the facts and on whether the Italian tax was applied through withholding or declaration. The foreign withholding shown by a broker should therefore not automatically be treated as fully creditable.

Capital Losses

Losses classified as minusvalenze within redditi diversi can generally offset compatible capital gains in the same year and the following four tax periods. They cannot generally reduce dividends, interest or positive ETF/fund proceeds classified as redditi di capitale.

When changing brokers under regime amministrato, ask how certified residual losses can be transferred. Under regime dichiarativo, accurate transaction-level records and the relevant return schedules are essential.

PIR Accounts

A qualifying ordinary PIR can exempt eligible income and gains from ordinary investment tax when the statutory portfolio, concentration and holding requirements are maintained. In broad terms, the current ordinary-PIR limits are €40,000 of contributions per calendar year and €200,000 in total, and the investment must generally be held for at least five years.

PIR portfolios must satisfy allocation rules intended to channel capital toward Italian and qualifying European businesses with a permanent establishment in Italy, including specified portions outside the largest listed companies. Concentration limits also apply. A provider’s “PIR compliant” label should be supported by the contractual and product documentation.

Early disposal or loss of eligibility can trigger recovery of the previously exempt tax, subject to statutory replacement and reinvestment rules. PIR treatment can also provide an inheritance-tax exemption for qualifying holdings. Because these conditions are detailed and can change, confirm them in the current legislation and provider documentation before relying on the exemption.

Regime Dichiarativo

Under the declarative regime, the investor calculates and reports income and gains. Foreign brokers commonly fall into this practical category for Italian residents. Depending on the assets, the filing can involve income schedules, capital-gain schedules and foreign-asset monitoring.

A broker-generated tax report can help, but responsibility for its accuracy and for filing remains with the taxpayer.

Regime Amministrato

Under the administered regime, an eligible intermediary acts as tax substitute for covered transactions and normally withholds the relevant tax without identifying those items in the client’s ordinary return. This can simplify compliance, especially for frequent trades, but does not automatically cover unrelated foreign assets or income held elsewhere.

Regime Gestito

Under the managed regime, a qualifying portfolio manager generally taxes the annual accrued net result of the managed portfolio. This differs materially from the realised-transaction approach under the administered and declarative regimes and can permit broader internal offsetting within the managed portfolio.

Foreign Accounts, Quadro RW and IVAFE

Italian tax residents holding investments or financial assets abroad generally have foreign-asset monitoring obligations. The Revenue Agency’s 2026 Quadro RW guidance states that resident individuals must report foreign investments and foreign financial assets and calculate IVAFE where applicable.

For foreign financial products, IVAFE is generally 0.20% per year, apportioned for ownership share and holding period. Foreign current accounts and savings books are generally subject instead to a fixed €34.20 charge when the statutory average-balance condition is met.

The monitoring exemption for foreign deposits and current accounts whose aggregate maximum balance during the year does not exceed €15,000 does not remove the filing requirement where IVAFE is due. Since 2024, eligible taxpayers can also report relevant foreign assets and calculate IVAFE through Quadro W of Form 730, rather than necessarily filing an additional Redditi form.

Italian-Held Financial Assets and Stamp Duty

Financial products held through an Italian intermediary are generally subject to the 0.20% annual stamp duty on the report value, with statutory valuation and timing rules. This is distinct from capital-gains or income tax. Broadly, IVAFE is the corresponding tax for many financial products held abroad, so the account location matters.

Tax Residence and Worldwide Income

Italian tax residents are generally taxed on worldwide income. An expat’s broker location or nationality does not displace Italian residence rules. Anyone arriving in or leaving Italy during a year, claiming treaty residence, using a special inbound regime or holding assets through a company or trust should obtain tailored advice.

For broader context, see the Finorum Italy Tax Guide.

Regulation and Investor Protection

CONSOB and the Bank of Italy

CONSOB oversees securities markets, disclosure, conduct and investment services within its remit. The Bank of Italy performs prudential supervision and shares responsibilities under the Italian and European supervisory framework.

Investors should check both authorisation and warnings. A company appearing in a register does not mean every website using a similar name is genuine.

Investor Compensation

The Fondo Nazionale di Garanzia is Italy’s investor-compensation mechanism for participating intermediaries. Statutory compensation is subject to eligibility, exclusions and a maximum of €20,000 per investor. It is designed for an intermediary’s failure to return covered money or instruments; it does not reimburse normal investment losses or a fall in market value.

A cross-border broker may instead be covered by the scheme of its home-state legal entity. Check the account contract rather than assuming Italian coverage.

Deposit Protection

Eligible bank deposits at member banks are generally protected up to €100,000 per depositor per bank. The Fondo Interbancario di Tutela dei Depositi explains that this covers eligible deposits and is separate from securities-market loss or investor-compensation coverage.

Client-Asset Segregation

Properly segregated client securities should ordinarily be kept separate from the intermediary’s own assets. Segregation, deposit guarantee and investor compensation are different protections. None protects an investor against market loss, unsuitable concentration, fraud outside the scheme’s scope or currency movements.

Is Italy a Good Base for Investors?

Italy can be a practical base for investors who value broad EU market access and the option of domestic tax administration.

Potential Advantages

broad access to UCITS ETFs and international exchanges;
several domestic brokers offering regime amministrato;
established banks and local investment firms;
PIR tax advantages for investors who can satisfy the conditions;
EU-wide disclosure, conduct and product-governance rules; and
reduced 12.5% treatment for qualifying government debt.

Potential Disadvantages

26% taxation on most ordinary investment income and gains;
no broad ISA-style annual exemption for ordinary portfolios;
Quadro RW or W and IVAFE obligations for many foreign accounts;
an unusually important distinction between redditi di capitale and redditi diversi;
limited retail access to most US-domiciled ETFs; and
potentially higher costs at traditional bank brokers.

The “best” broker depends on the value of automatic tax administration, instruments required, portfolio size, trading frequency, custody preferences and the relevant investor-protection scheme—not simply the lowest advertised commission.

Compare Italy and Plan the Wider Move

Investment tax should not be evaluated in isolation from earnings, housing and living costs. These Finorum tools and guides can be used together:

Conclusion

Italy offers mature markets, extensive UCITS ETF access and a meaningful choice between domestic tax-substitute brokers and international platforms. The trade-off is a detailed tax system: most investment income is taxed at 26%, qualifying government debt receives 12.5% treatment, ETF losses have restricted offsetting value, and foreign accounts can create monitoring and IVAFE obligations.

For many residents, the first decision is therefore whether the investment advantages of a foreign broker outweigh the additional declarative work. A qualifying PIR may improve long-term tax efficiency, but only where its investment, concentration and five-year conditions fit the investor’s strategy.

Disclaimer

This guide is for general information and education only. It is not investment, tax, accounting or legal advice, and it does not recommend any broker, ETF or strategy. Broker availability, legal entities, fees, tax services and product ranges can change. Verify current terms with the provider and current rules with CONSOB, the Bank of Italy, the Italian Revenue Agency or a qualified Italian professional before acting.

Matias Buće

Matias Buće has a formal background in administrative law and more than ten years of experience studying global markets, forex trading, and personal finance. His legal training shapes his approach to investing — with a focus on regulation, structure, and risk management. At Finorum, he writes about a broad range of financial topics, from European ETFs to practical personal finance strategies for everyday investors.

Sources & References

EU regulations & taxation

European Commission / Taxation & Customs — PRIIPs Key Information Document required for an EEA retail sale