For an alternative tax regime affecting income tax on capital gains, individuals can refer to the tax system for neo-domiciled individuals, as outlined in the Taxes on Personal Income section, provided they have opted for it.

Taxation on Securities Capital Gains in Italy

The taxable base for asset sales, including securities such as stocks and bonds, is calculated by deducting the sale price from the purchase price, along with associated acquisition expenses (notary fees, taxes, broker fees, etc.).

The taxation of capital gains from securities is determined by the classification of participation, mainly falling into two categories:

1. Qualified Shareholding:

• Exceeds 2% of voting rights or 5% of capital or equity for securities traded in public regulated markets (Italian or foreign).
• Exceeds 20% of voting rights or 25% of capital or equity for securities not traded in public regulated markets.

2. Non-Qualified Shareholding:

• Does not exceed 2% of voting rights or 5% of capital or equity for securities traded in public regulated markets.
• Does not exceed 20% of voting rights or 25% of capital or equity for securities not traded in public regulated markets.

Taxation of Qualified Shareholdings

For capital gains derived from the sale of qualified shareholdings:

• Capital gains up to December 31, 2017: 49.72% included in individual annual gross income, subject to progressive tax rates (income tax: Imposta sul Reddito delle Persone Fisiche – IRPEF).
• Capital gains between January 1, 2018, and December 31, 2018: 58.14% included in individual annual gross income, subject to progressive tax rates.
• Capital gains from January 2019: Subject to a flat tax rate of 26% on the entire capital gains amount.

Taxation of Non-Qualified Shareholdings

Capital gains from the sale of non-qualified shareholdings are subject to a flat tax rate of 26%.

Real Estate Capital Gains Tax in Italy

The taxable base for real estate capital gains is calculated as the difference between the sale price and the original cost of the property, including all additional purchase expenses (notary fees, taxes, etc.).

Capital gains from real estate sales are subject to progressive tax rates or a flat tax rate of 26% under specific conditions.

Exemptions from capital gains tax are applicable in cases such as:

• Sale of real estate owned for more than five years.
• Sale of real estate, even if owned for less than five years, if it has been the primary residence for the majority of the ownership period.