Italian stock options
The cadastral value is proportionated to the percentage owned and the period of ownership. IMU has substituted IRPEF for real estate at disposal, but it is to be reported on a tax return in any case, and no taxable income arises. As of FY , a new tax regime, called cedolare secca, has been introduced. It is a voluntary and optional tax regime in respect to the ordinary one. As of FY , IVIE see the Other taxes section for more information replaced the national income tax IRPEF on incomes deriving from foreign real estate not rented, whereas rented real estates must be reported in any case in the tax return.
In particular, if the income deriving from the rented real estate owned outside of Italy is subject to foreign rental income taxes in the foreign country, the same taxable base utilised in the foreign tax return is subject to taxation also in Italy. This income is then included in the Italian ordinary taxable base and taxed at progressive tax rates. In this case, the taxpayer is entitled to claim for the foreign tax credit in the Italian tax return in order to avoid double taxation if any.
The said deduction is limited to the proportion of the Italian tax corresponding to the ratio between the taxable income produced abroad and subject to double taxation and total income. The foreign tax credit cannot, in any case, exceed the net Italian tax due on the foreign source income.
See the tax regime for neo-domiciled individuals in the Taxes on personal income section, which substitutes the income tax on foreign rental income deriving from a real estate owned out of Italy, provided the individual opted for it. Investment income is generally defined as income arising from the use of capital, typically interest and dividends. See the tax regime for neo-domiciled individuals in the Taxes on personal income section, which substitutes the income tax on foreign interests and dividends, provided the individual opted for it.
The taxation of dividends deriving from qualified shareholding has changed as of fiscal year However, the tax law provides a transition period in which the dividends from qualified shareholding distributed from 1 January to 31 December and referred to profits produced before 31 December will be included in the individual gross income according to the following percentages:.
For the sake of completeness, the dividends distributed by a foreign entity that are not paid through an Italian broker should be included in the individual Italian tax return and taxed according the above-mentioned rules. In this case, no further action will be required. For specific interests stated by the tax law e. For individuals, capital gains are generally taxable, even if they do not arise from speculative intent or from a business.
See the tax regime for neo-domiciled individuals in the Taxes on personal income section, which substitutes the income tax on capital gain, provided the individual opted for it. The taxable base referred to in the sale of assets securities, i. As per the taxation of dividends, the taxation of capital gains on securities also mainly depends on the following categories of participation:.
The taxable base of the real estate capital gains is the difference between the sale price and the original cost of real estate together with the sum of all the additional purchase costs notary fees, taxes, etc. There are some exemptions, however, and such are applicable on capital gains deriving from the following sales:.
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Information Regarding Italian Financial Transaction Tax on Derivatives | IB Knowledge Base
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Italy The total taxable amount is generally subject to progressive tax rates see the Taxes on personal income section for more information.
How to invest in Italy using ETFs
The Italian tax system provides the six following categories of income: Employment income. Business income. Self-employment income. The agency replied to this question, stating that the special taxation at a fixed rate of Income deriving from a director's relationship with the company is considered similar to income deriving from an employment contract, and is thus subject to the same taxation.
In light of these factors, the Public Revenue Agency held that the special taxation of stock option plans addressed to employees can also be extended to directors.
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View recent newsletter. More articles. Confirm Manage account. Forward Share Print. Before you invest, you should have a solid working knowledge of the Italian economy and know which companies compose the backbone of the Borsa Italiana. Pick an industry experiencing significant growth or one with solid growth potential if you're looking to invest long term.
Identify the various Italian companies operating in that industry, and do your stock market homework on them, just as you would for an American company.
Changes to the Italian stock option tax regime
If you don't know how to research a stock properly, head to your library or local bookstore for help. Contact your brokerage firm when you have determined which Italian company you want to invest in. Place your order and wait while it is filled.
Your domestic brokerage needs to route the request to an appropriate, licensed Italian stockbroker to complete the transaction. You may experience a delay while your order goes through. English website see Resources below.