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Capital gains tax in Italy 2026
Selling shares, bonds or fund units costs a flat 26% substitute tax on the gain, settled outside the income tax bands.
Property runs on holding time: sell within 5 years and the gain is taxed with your income, hold longer and it is usually tax-free — and your main home is exempt from day one.
Anything you inherited or received as a gift sells free of capital gains tax as well.
At a glance
- top rate
- 26% flat (financial assets)
- entry band
- Property within 5 years: your band rates (23%–43%)
- tax year basis
- Calendar year
- filing deadline
- Via the annual return (2 November 2026 this season) unless your bank runs a managed regime
- residency basis
- Residents taxed on gains worldwide
- regime flag
- Main home fully exempt; most property exempt after 5 years
Rates
Capital gains by asset type (2026)
| Rate | Base | Applies to |
|---|---|---|
| 26% | Net gain | Shares, bonds, funds and other financial assets held privately |
| Band rates on 58.14% | Part of the gain | Shareholdings sold within a business activity (conditions apply) |
| Band rates (23%–43%) | Full gain | Italian property sold within 5 years of purchase (main home excluded) |
| 0% | — | Property held over 5 years, your main home, and anything acquired by inheritance or gift |
Thresholds & allowances
- Cost-basis step-up election21% substitute tax on the appraised 1 January value
For privately held participations; the rate was 18% before 2026
- Startup investor exemption0% on qualifying stakes
Innovative startup and small-company shares subscribed between June 2021 and December 2025 and held at least 3 years
Residency
Residency trigger
Residents owe Italian tax on gains wherever the asset sits; gains on stakes in listed low-tax-jurisdiction entities can be taxed in full rather than at 26%.
Non-resident treatment
Non-residents from information-sharing countries pay nothing on non-substantial holdings in Italian listed companies, traded bonds and similar instruments; other Italian gains generally face the 26%. Italian property follows the same 5-year rule as for residents.
Notes
- The 5-year property exemption stretches to 10 years if the sale follows use of the enhanced 110%-style renovation credit, with exceptions.
- Land approved for building never qualifies for the holding-period exemption, though a substitute-tax election exists for it.
- Selling a whole business held over 5 years can be taxed separately at your average historical rate instead of stacked into one year.
- Crypto gains have their own regime and rate — see the Italy crypto tax page.
FAQ
What is the capital gains tax rate in Italy?
26% flat on financial assets. Property sold within 5 years is taxed at your income tax bands (23%–43%); after 5 years it is generally tax-free.
Is selling my home taxed in Italy?
No — a property that has mainly been your (or your family's) principal home sells with 0% capital gains tax, however short the ownership.
Can I reset the purchase price of old shares?
Yes — a recurring election lets you step up privately held participations to their appraised 1 January value by paying a 21% substitute tax (18% before 2026).
Figures: tax year 2026, compiled from public sources. Not tax advice.