Investing from Italy: regime amministrato, IVAFE and PIR

• Rate: 26% on capital gains and, according to the instructions, on dividends from abroad. Gains on Italian government bonds and on bonds of "white list" states count at only 48.08%.
• Regime amministrato: according to their own pages, Trade Republic, Scalable Capital, Saxo and IG act as withholding agent. XTB provides a tax report for your own return.
• Broker abroad without withholding: income in quadri RM and RT, holdings in quadro RW, plus IVAFE of 0.2% of the value.
• Transaction tax: 0.4% on Italian shares since 1 January 2026, 0.2% on a regulated market or MTF.
• PIR: tax-free after a 5-year holding period, at most EUR 40,000 a year and EUR 200,000 in total (as of 2022).
• US dividends: 15% under the treaty. Protection: FNG up to EUR 20,000 per investor, deposits up to EUR 100,000 (FITD).

Capital gains and other financial income in the "redditi diversi" category (art. 67(1)(c-bis) to (c-quinquies) TUIR) realised since 1 July 2014 are subject to a 26% substitute tax (imposta sostitutiva). On a gain of EUR 2,000 that is EUR 520.

Gains on Italian government bonds and equivalent securities, and on bonds of "white list" states and their local authorities, count at only 48.08%. A gain of EUR 1,000 thus becomes EUR 480.80 of taxable income and EUR 125.01 of tax – roughly 12.5% by arithmetic.

Profits from qualified holdings have carried a 26% final withholding since 1 January 2018 (for profits formed from the 2018 financial year). Foreign investment income received without an Italian intermediary goes in line RM31 and is taxed at the same rate as the Italian final withholding on income of the same kind (art. 18 TUIR). For profit distributions from abroad, from qualified and non-qualified holdings alike, the appendix to the instructions gives 26%.

If losses exceed gains, the excess can be offset against gains up to the fourth following tax year, provided it is shown in the return for the year the loss arose.

Under the regime amministrato the intermediary calculates, withholds and pays. Assets held with Italian-resident intermediaries that applied the withholding need no quadro RW. For financial products held with Italian intermediaries, stamp duty (imposta di bollo) of 0.2% a year is charged on the statements (Risoluzione 84/E of 2014; we did not read a newer official page).

XTB's "no" is inferred: its tax-report page describes which sections of the Redditi form clients complete themselves. DEGIRO offers a general annual report as a PDF.

The Italian providers Directa SIM (supervised by the Banca d’Italia and Consob according to its own site, and a member of the FNG) and FinecoBank also act as withholding agents; Fineco names exceptions, such as non-harmonised ETFs, which clients declare themselves. We do not compare or rate either of them (yet).

• Quadro RM: foreign investment income such as dividends, line RM31.
• Quadro RT: capital gains and losses.
• Quadro RW: reporting of assets abroad. For bank deposits and accounts abroad whose peak value in the year does not exceed EUR 15,000 the reporting duty does not apply – but the quadro is still needed wherever IVAFE is due.
• IVAFE: 0.2% of market value at year end, pro rata to ownership share and holding period. For financial products held in states with a privileged tax regime the rate has been 0.4% since 2024. Current accounts and savings books abroad cost individuals a flat EUR 34.20 per account, but nothing with an average balance of up to EUR 5,000. It is declared in quadro W of the 730 form or in quadro RW of the Redditi form.

An example: a portfolio worth EUR 20,000 at year end, held all year, gives EUR 40 of IVAFE; if the cash account's average balance is above EUR 5,000, another EUR 34.20 is added. From 1 January 2027, IVAFE is governed by art. 168 of Decreto legislativo 123/2025, and the previous provisions are repealed.

Transfers of shares and participating instruments of Italian companies have cost 0.4% since 1 January 2026 (until the end of 2025: 0.2%), calculated on the net daily balance per instrument. On a regulated market or MTF the rate is halved to 0.2%. Exempt there are shares of companies whose average market capitalisation in November of the previous year was below EUR 500 million. High-frequency trading is taxed at 0.04%.

A net daily balance of EUR 5,000 in a share in scope gives EUR 10 on the exchange and EUR 20 off it. Banks and investment firms must pay the tax over, including those not established in Italy; without an intermediary the taxpayer pays it. DEGIRO states that it calculates, withholds, reports and pays the tax for its clients.

A piano individuale di risparmio (PIR) makes income tax-free if the investments are held for at least five years. According to Circolare 10/E of 4 May 2022:

• Ordinary PIR: at most EUR 40,000 a year and EUR 200,000 in total, one plan per person. Plans from 1 January 2020 ("PIR 3.0") must invest at least 70% in the instruments the law specifies.
• Alternative PIR: for less liquid investments, EUR 300,000 a year and EUR 1.5 million in total; since 2022 several are allowed, with the limits applying to all of them together.

Whether the limits have changed since, and which broker in our comparison offers a PIR, we have not checked.

US withholding tax on dividends for residents of Italy is 15% under the treaty, 5% for qualifying direct holdings (IRS Table 1, rev. May 2023).

Investment firms (SIM) are supervised by the Banca d’Italia (risk and stability) and Consob (transparency and conduct). The Fondo Nazionale di Garanzia compensates up to EUR 20,000 per investor when a member in compulsory liquidation, bankruptcy or composition with creditors fails to return money or securities. Italian branches of EU firms are members for their Italian business, as a top-up to their home-country scheme. Deposits are guaranteed by the FITD up to EUR 100,000 per depositor and bank.

• whether the PIR limits have changed since 2022;
• whether DEGIRO or Revolut act as withholding agent; we did not check Freedom24, eToro, Trading 212, Interactive Brokers and Lightyear for Italy;
• the 2026 tax rate on crypto-assets, supplementary pension funds (fondi pensione) and Consob register numbers;
• whether losses carry over when switching between the two regimes.

Compare by country of residence: stock brokers for investors in Italy and ETF brokers for investors in Italy.

• Agenzia delle Entrate, Redditi PF 2026, Fascicolo 2, instructions: quadri RM, RT and RW; appendix "Redditi di capitale di fonte estera", letter H, read on 26 October 2026
• Agenzia delle Entrate, IVAFE: base and rates; overview (2 October 2026)
• Agenzia delle Entrate, transaction tax: overview (17 March 2026); who pays it over
• Agenzia delle Entrate, Circolare 10/E of 4 May 2022 (PIR); Risoluzione 84/E of 16 September 2014
• Banca d’Italia, supervision; Fondo Nazionale di Garanzia; FITD
• IRS, Tax Treaty Table 1 (Rev. May 2023)
• Trade Republic: press release of 30 January 2025, website; Scalable Capital: Italian branch; Saxo; IG; XTB, tax report
• DEGIRO: transaction tax, tax certificates, annual reports; Revolut; Directa SIM; FinecoBank

This article is for information only and does not constitute investment, legal or tax advice.