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Dividend tax in Italy 2026
Dividends you hold as a private investor are settled with a flat 26% final withholding — nothing more to declare, and no election to use your income tax bands instead.
Hold the shares inside a business activity and the treatment flips: 58.14% of the dividend joins your other income at progressive rates, with the rest exempt.
At a glance
- top rate
- 26% flat, final
- entry band
- Business-held stakes: 58.14% of the dividend at your band rates
- tax year basis
- Calendar year
- filing deadline
- Settled at source; declared only if paid without an Italian intermediary
- residency basis
- Covers Italian and foreign dividends of residents
- regime flag
- Dividends from listed low-tax jurisdictions can be taxed in full
Rates
How dividends are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 26% | Gross dividend | Private (non-business) holdings — final tax taken at source |
| Band rates on 58.14% | Part of the dividend | Shares held within a business activity |
| 26% substitute tax | Gross dividend | Foreign dividends received without an Italian bank or broker in the chain — you self-assess in the return |
Thresholds & allowances
- Employee profit-sharingHalf exempt up to €1,500 (2025–2026)
For dividends paid through qualifying employee financial participation plans
Residency
Residency trigger
Residents owe the 26% on dividends from anywhere in the world; an Italian intermediary withholds it, otherwise you settle it through the return.
Non-resident treatment
Non-residents face a 26% final withholding on Italian dividends. Tax treaties can cut it, and if your home country also taxed the dividend you can reclaim as much as 11/26 of what Italy withheld.
Notes
- No expenses can be deducted from dividend income — the 26% applies to the gross amount.
- Dividends from a company based in a listed low-tax jurisdiction lose the flat-rate shelter and can be taxed in full at your band rates, unless specific escape conditions are met.
- The same 26% flat rate covers most interest income; interest on Italian government bonds (and bonds of cooperative states) enjoys a reduced 12.5%.
FAQ
What is Italy's dividend tax rate?
A flat 26%, withheld as a final tax on privately held shares — Italian or foreign.
Can I have dividends taxed at my income tax bands instead?
No — since the regime was unified, private investors get the flat 26% with no progressive option. Only dividends on shares held within a business use the bands, on 58.14% of the amount.
Figures: tax year 2026, compiled from public sources. Not tax advice.