Italy Capital Gains Tax Calculator 2026

How much tax could you pay when selling an investment in Italy?

The Finorum Italy Capital Gains Tax Calculator estimates the tax due when an Italian tax resident sells shares, cryptocurrency, investment property or another taxable asset. Enter the purchase price, sale value, eligible transaction costs and compatible losses to receive an indicative calculation under the Italian rules.

Italy generally taxes financial capital gains at 26%. However, cryptocurrency gains realised from 1 January 2026 are generally subject to a higher 33% substitute-tax rate. Property gains depend on the type of property, its use and the period between acquisition and sale.

How Capital Gains Tax Works in Italy

Italy does not impose one universal capital gains tax on every type of asset. Instead, the treatment depends on whether the gain arises from shares, bonds, investment funds, cryptocurrency, real estate, a business interest or another asset.

For most private investors, gains from selling financial investments are classified as redditi diversi di natura finanziaria and are generally subject to a substitute tax rather than ordinary progressive personal income tax.

The basic calculation is:

Capital gain = Sale value − Acquisition cost − Eligible transaction expenses

Compatible capital losses can then be deducted where Italian rules permit an offset. Unlike systems that provide a general annual CGT allowance, Italy does not normally give individuals a universal tax-free annual exemption for ordinary financial gains.

The tax is therefore generally calculated from the first euro of net taxable gain.

The calculator distinguishes between different asset routes because the applicable rate, exemptions and loss-offset rules are not identical.

Capital Gains Tax Rate on Financial Investments

Capital gains on most shares, bonds and other financial instruments held outside a business activity are generally subject to a 26% substitute tax.

This 26% rate ordinarily applies to gains from:

• listed shares;
• unlisted shares;
• qualifying and non-qualifying participations, subject to specific exceptions;
• corporate bonds;
• certificates and derivatives;
• many other financial instruments.

Certain Italian government bonds and equivalent qualifying sovereign securities benefit from an effective 12.5% tax rate rather than the standard 26%. Mixed investment funds may calculate the tax by separating the portion attributable to qualifying government securities from the rest of the return.

Holdings in companies located in jurisdictions with privileged tax regimes can be subject to different rules. In some cases, the gain may be included in ordinary taxable income unless the taxpayer demonstrates that the relevant statutory conditions are satisfied.

The standard calculator route assumes an ordinary investment taxed at 26%. It should not be used as a definitive calculation for government securities, privileged-tax-jurisdiction holdings or assets receiving another special rate.

Example of an Italian Capital Gain

Suppose an investor purchases shares for €30,000 and later sells them for €45,000.

The investor pays €150 in purchase commissions and €250 in selling fees. The total eligible cost is therefore €30,400.

The gain is:

€45,000 − €30,400 = €14,600

If the investor has €2,000 of compatible capital losses, the net taxable gain becomes:

€14,600 − €2,000 = €12,600

At the standard 26% rate, the estimated tax would be:

€12,600 × 26% = €3,276

The estimated proceeds remaining after this tax would be €41,724 before considering any unrelated taxes, account charges or professional fees.

No General Annual CGT Allowance

Italy does not generally provide a personal annual capital gains exemption comparable to those available in some other European countries.

For ordinary financial investments, a net taxable gain may therefore be subject to tax even when the amount is relatively small.

This is particularly important for users comparing Italian results with countries that provide a fixed annual exemption. The absence of a general allowance does not mean that every disposal necessarily creates tax: the transaction may still be exempt, generate no economic gain or be offset by compatible losses.

Cryptocurrency previously had a €2,000 annual threshold, but that threshold was removed for gains realised from 1 January 2025. It should not be applied to crypto disposals made in 2026.

Three Taxation Regimes for Financial Investments

Italian investors may hold financial assets under one of three principal taxation arrangements.

Declaratory regime

Under the regime dichiarativo, the investor calculates and reports taxable gains and losses in the annual tax return.

This arrangement is often relevant when investments are held through a foreign broker that does not act as an Italian withholding agent. The taxpayer remains responsible for transaction records, exchange-rate conversions, loss tracking, reporting and payment.

Administered savings regime

Under the regime del risparmio amministrato, an authorised Italian intermediary generally calculates and withholds the substitute tax when taxable gains arise.

The intermediary also tracks compatible losses within the account. The investor usually does not report each individual transaction, although foreign assets or other circumstances can still create separate reporting obligations.

Managed portfolio regime

Under the regime del risparmio gestito, taxation is generally based on the net annual result of the managed portfolio, including realised and certain unrealised components according to the applicable rules.

The distinction matters because the timing of taxation and treatment of gains and losses can vary. The Finorum calculator estimates the tax on the selected disposal but does not reproduce every operational feature of these three regimes.

Capital Gains Tax on Shares in Italy

Gains from the sale of shares by a private investor are generally taxed at 26%.

The taxable amount normally equals the sale proceeds minus:

• the documented purchase price;
• brokerage commissions;
• transaction charges;
• other expenses directly connected with purchasing or selling the shares.

Since 2019, gains from many qualifying and non-qualifying shareholdings realised by individuals outside a business activity have generally been brought within the 26% substitute-tax framework.

Special treatment can still apply to:

• shares in companies located in privileged-tax jurisdictions;
• business assets;
• substantial interests affected by corporate reorganisations;
• inherited or gifted shares;
• holdings whose acquisition value has been formally revalued;
• non-residents protected by domestic exemptions or tax treaties.

Dividends are not capital gains. They are normally classified as investment income and may be taxed through withholding or substitute-tax rules. Do not enter dividend income as sale proceeds in the CGT calculator.

The Italian Revenue Agency’s 2026 return guidance confirms the use of the 26% substitute-tax sections for relevant financial gains. Italian Revenue Agency: Financial capital gains

Investment Funds and ETFs

Income from investment funds and ETFs requires careful classification.

Fund distributions and the positive difference realised when redeeming or selling fund units may generally be treated as investment income rather than ordinary miscellaneous financial gains. This classification affects whether losses from other investments can be used against the return.

A common practical issue is that capital losses from shares, certificates or similar instruments cannot always be offset against positive proceeds classified as investment income from funds and ETFs.

For this reason, entering every portfolio loss into the calculator may overstate the available deduction.

The tax rate is commonly 26%, but the effective rate may be reduced for the portion of a fund invested in qualifying Italian or foreign government securities taxed at 12.5%.

The standard calculator provides an indicative result. It does not reconstruct a fund’s sovereign-bond component or resolve the legal classification of every ETF distribution and disposal.

Cryptocurrency Tax in Italy for 2026

Italy applies a distinct regime to gains and other income from crypto-assets.

For taxable crypto gains realised from 1 January 2026, the substitute-tax rate is generally 33%. A reduced 26% treatment remains available for narrowly defined euro-denominated electronic-money tokens satisfying the statutory conditions.

The legislation establishing the 2026 rate also removed the former €2,000 threshold. Consequently, crypto gains realised from 1 January 2025 generally enter the tax calculation without that minimum annual threshold.

Italy’s 2026 rules therefore differ from many older online explanations that still refer to a 26% rate and a €2,000 exemption.

The 33% rate and the special treatment of qualifying euro-denominated electronic-money tokens are set out in Italy’s applicable legislation. Normattiva: Law No. 207 of 30 December 2024

A taxable event can arise when cryptocurrency is:

• sold for euros or another traditional currency;
• used to purchase goods or services;
• exchanged for an asset with different characteristics or functions;
• transferred through another transaction that realises its economic value.

A simple exchange between crypto-assets having the same characteristics and functions may not constitute a taxable event under the specific statutory wording. In practice, determining whether two assets meet this test can be difficult.

The gain is generally calculated from the consideration received, or the normal value of the crypto-assets exchanged, minus the documented acquisition cost.

If the taxpayer cannot support the acquisition cost with reliable and precise records, the recognised cost may be treated as zero. Maintaining complete transaction evidence is therefore essential.

Relevant records include:

• purchase and sale dates;
• quantities and asset types;
• euro values at the transaction date;
• exchange and network fees;
• transfers between personal wallets;
• transaction hashes;
• acquisition-cost documentation;
• evidence that a transfer was not a disposal.

Crypto losses realised from 2025 onward are no longer subject to the former €2,000 minimum for recognition. However, loss reporting and the four-year carry-forward limit must still be handled correctly.

Monitoring and Tax on Crypto Holdings

Italian tax residents may also have reporting obligations for crypto-assets held through foreign platforms, unhosted wallets or arrangements not covered by an Italian intermediary.

These obligations are separate from the tax on realised capital gains.

Crypto holdings can also be subject to an annual tax on their value, commonly calculated at 0.2%, depending on how and where the assets are held. This annual charge is not Capital Gains Tax and is not included in the calculator’s disposal result.

A taxpayer may therefore have no taxable disposal but still face monitoring or annual asset-tax obligations.

Capital Losses in Italy

Compatible capital losses may be deducted from taxable financial gains under the applicable rules.

Unused losses can generally be carried forward for up to four subsequent tax years, provided they have been correctly declared or recorded by the relevant intermediary.

However, Italy separates different categories of financial income. Losses classified as redditi diversi cannot necessarily reduce amounts classified as redditi di capitale.

This distinction means that a loss on shares may potentially offset a compatible gain on other shares, derivatives or certain certificates, but may not offset:

• dividends;
• interest;
• many fund distributions;
• some positive ETF proceeds;
• other returns classified as investment income.

Crypto losses must also be tracked under the rules applicable to crypto-assets and should not automatically be treated as interchangeable with every other portfolio loss.

Use the calculator’s Compatible losses field only for losses that can legally reduce the selected gain. If the category is uncertain, a tax professional or the investor’s Italian intermediary should confirm the treatment.

Capital Gains Tax on Property in Italy

A private individual’s gain from selling Italian real estate can be taxable when the property is sold within five years of its purchase or construction.

The gain is generally the difference between the sale price and the property’s tax cost, increased by qualifying purchase and improvement expenses.

Relevant costs can include:

• purchase price;
• notarial fees connected with the acquisition;
• registration, mortgage and cadastral taxes paid on acquisition;
• estate-agent commissions;
• documented capital improvements;
• eligible professional expenses.

Ordinary maintenance and personal financing costs are not necessarily deductible when calculating the gain.

A property sold more than five years after acquisition is generally outside the ordinary private real-estate capital-gain charge. This five-year exemption does not normally protect building land, which can remain taxable regardless of the holding period.

Main-Home Exemption

A property sold within five years may nevertheless be exempt if it was used as the owner’s or family’s principal residence for most of the period between purchase or construction and sale.

This is not simply determined by whether the taxpayer received “first-home” purchase benefits. The actual use of the property as the habitual main residence is important.

For example, a home owned for four years and used as the seller’s principal residence for more than half of that period may qualify for the exemption, subject to the facts and supporting records.

A short period of residence may not be sufficient if the property was rented or kept as a second home for most of the ownership period.

Properties acquired through inheritance are generally exempt from this ordinary five-year speculative-gain rule. Different rules can apply to donated property because the donor’s acquisition history may remain relevant.

Building land and property development transactions require separate analysis and should not be assessed through the simple residential-property route.

Substitute Tax at the Notarial Sale

When a taxable real-estate gain is realised by a private individual, it may be possible to request the application of a 26% substitute tax at the time of the notarial deed.

The request must normally be made to the notary during the sale. The notary collects the tax and completes the relevant reporting obligations.

If this option is not selected, the gain may instead be included in the seller’s taxable income and subject to ordinary IRPEF rules.

The most favourable route depends on the seller’s income, available deductions and specific transaction. The calculator’s standard property result uses the selected route and should not be treated as an automatic recommendation to choose the substitute tax.

Foreign Property and Financial Assets

An Italian tax resident is generally subject to Italian taxation on worldwide income and gains, subject to applicable tax treaties and foreign-tax-credit rules.

A gain from selling property, shares or another asset abroad may therefore need to be reported in Italy even if tax was also paid in the country where the asset was located.

Foreign investments may additionally trigger reporting in Quadro RW and annual wealth taxes such as:

• IVAFE for qualifying foreign financial assets;
• IVIE for foreign real estate.

These annual taxes are separate from tax on the disposal gain and are not included in the calculator’s CGT estimate.

Exchange-rate movements can also affect the euro gain. Purchase costs and sale proceeds denominated in another currency must be converted using the applicable Italian tax rules rather than simply comparing the original foreign-currency amounts.

What Do “Other Annual Gains” and “Compatible Losses” Mean?

The Other annual gains field records additional taxable gains realised during the same tax year.

Italy does not apply a general annual CGT allowance, but other gains can still matter when determining:

• how available losses are used;
• whether a threshold or special regime applies;
• the total amount that must be reported;
• whether the selected tax route remains appropriate.

The Compatible losses field reduces the selected gain by losses that are legally available for offset.

Because Italy separates investment income, miscellaneous financial income, crypto results and certain special asset categories, not every loss can be applied against every gain. The user should not enter all portfolio losses as a single unrestricted amount.

Tax Reporting and Payment

The reporting procedure depends on how the investment is held.

Under an administered or managed regime, an authorised Italian intermediary may calculate and withhold the relevant substitute tax.

Under the declaratory regime, the investor generally reports the gain in the appropriate section of the annual income-tax return and pays the resulting substitute tax using Form F24.

The Italian Revenue Agency’s 2026 schedule identifies 30 June 2026 as the ordinary payment date for relevant substitute taxes resulting from the annual returns, with later payment generally possible subject to the applicable surcharge and rules. Italian Revenue Agency: 2026 payment schedule

The exact deadline depends on the return, taxpayer category, applicable extension and year in which the gain was realised. The taxpayer should check the official instructions for the relevant filing season.

Foreign accounts, investments and crypto-assets may require additional reporting even if no sale occurred.

What the Italy CGT Calculator Includes

The calculator provides an estimated breakdown of:

• sale or disposal value;
• original acquisition cost;
• eligible transaction expenses;
• initial capital gain;
• other annual gains;
• compatible capital losses;
• estimated taxable gain;
• applicable tax rate;
• estimated tax liability;
• net proceeds after estimated tax.

The calculator can also display a compound investment projection showing how an initial investment and optional monthly contributions might grow under an assumed annual return.

The projection is illustrative. It does not predict future returns, inflation, investment fees or future Italian tax legislation.

Calculation Assumptions

Unless another route is selected, the calculator assumes that:

• the user is an individual tax resident in Italy;
• the asset is held outside a business activity;
• the transaction is a taxable private disposal;
• ordinary financial gains are taxed at 26%;
• crypto gains realised in 2026 are taxed at 33%;
• no general annual CGT exemption applies;
• the entered acquisition cost is fully documented;
• entered expenses are allowable;
• entered losses are compatible with the selected gain;
• no treaty exemption or special non-resident rule applies;
• annual IVAFE, IVIE and crypto-value taxes are excluded;
• no privileged-jurisdiction or business-income treatment applies.

Actual results can differ where the asset was inherited, donated, formally revalued, held through a company or partnership, connected with a business, located abroad or subject to a special investment regime.

Important Notice

The Finorum Italy Capital Gains Tax Calculator provides an indicative estimate for informational purposes only. It does not constitute tax, legal or investment advice.

Italian investment taxation distinguishes between different categories of income, and this distinction directly affects the use of losses. Cryptocurrency, investment funds, ETFs, government securities, foreign holdings, building land and business interests can require calculations outside the standard route.

Keep complete evidence of purchase prices, sales, commissions, improvement expenditure, wallet transfers and foreign taxes paid. For a binding calculation or personalised advice, consult an Italian commercialista, another qualified tax adviser or the Agenzia delle Entrate.

Italy Capital Gains Tax Calculator

Sources & References

Additional educational resources

• Infoprecompilata.agenziaentrate.gov.it — Italian Revenue Agency: Financial capital gains
• Normattiva.it — Normattiva: Law No. 207 of 30 December 2024
• Www1.agenziaentrate.gov.it — Italian Revenue Agency: 2026 payment schedule