Tax Deep Dive · 2026

How to Declare Forex Trading Profits in Italy (2026)

How Italy taxes forex and CFD profits, the rates and brackets, what counts as taxable, loss-offset rules, and how to declare your trading income to Agenzia delle Entrate.

For the rates, brackets and loss-offset rules, forex tax in Italy carries the figures.

Quick Answer

In Italy, forex and CFD profits are taxed under Imposta sostitutiva on financial income at a headline rate of 26%. The tax is administered by Agenzia delle Entrate and declared each year on the Modello Redditi PF — Quadro RT (capital gains). No. There is no tax-free regime for retail FX/CFD trading in Italy.

Forex Tax Treatment in Italy

Forex trading profits are taxed at a flat rate of 26% (imposta sostitutiva). Losses can be offset against gains within the same tax year and carried forward for 4 years. Traders must declare profits in their annual tax return (Modello Redditi).

Forex and CFD profits are 'redditi diversi di natura finanziaria' and taxed at a flat 26% substitute tax.

Tax Rates Table — Italy EUR

Applicable rates as of August 2026.

Bracket / Rule	Rate
All capital gains from FX/CFD trading	26% (imposta sostitutiva)
Government bonds (for context — not forex)	12.5%

What Counts as Taxable?

Most Italy residents need to declare the following types of trading income:

Realised forex/CFD capital gains. Profits from closing positions during the tax year.
Dividend-equivalent payments. Cash adjustments paid by your broker on long share-CFD positions when the underlying issues a dividend.
Carry / swap interest received. Positive overnight financing credited to long carry-trade positions is normally taxable as financial income.
Cashback, rebates and bonuses. Cash incentives paid by the broker may be reportable as miscellaneous or financial income.
Crypto CFD profits. Profits from cryptocurrency CFDs are taxed under the same rules as other CFDs (this is different from spot crypto, which usually has its own treatment).
Foreign exchange differences. Gains or losses from holding foreign-currency balances may need to be reported separately when converted back to your home currency.

Professional vs Retail Trader — Tax Implications

Italy does not have a separate 'professional trader' regime for retail FX. However, if trading is conducted as a business, profits become reddito d'impresa subject to IRPEF and IRAP.

Retail / private investor

Default treatment for almost all individuals. Profits taxed at the headline 26% rate under Imposta sostitutiva on financial income. Losses are restricted to the same category.

Professional / business trader

Triggered by frequency, volume, leverage, or income share. Profits are reclassified as ordinary business income at progressive rates plus social/contributions.

How to Declare Forex Income in Italy

1
Download your annual statement from each broker (and convert all amounts to EUR using year-end FX rates if your account is in another currency).
2
Calculate net realised profit or loss for the tax year — buy/sell pairs only (unrealised positions are usually excluded, except for mark-to-market regimes).
3
Add carry/swap interest, dividend-equivalent payments, and any cashback or rebates.
4
Open Modello Redditi PF — Quadro RT (capital gains) on the Agenzia delle Entrate portal.
5
Enter the totals in the capital-gains / investment-income section and indicate the source country of each broker.
6
Pay any balance owed by the deadline (30 November (online) for Modello Redditi; 30 September if using Modello 730) and keep the receipt and broker statements with your records.

Loss Offset Rules

Capital losses can be offset against capital gains in the same tax year and carried forward for 4 years against future gains of the same category.

Record Keeping Requirements

Keep annual broker statements and a Quadro RT-compatible profit/loss summary. Italian residents must also declare foreign accounts on Quadro RW and pay IVAFE wealth tax.

Annual broker statements (PDF and machine-readable formats)
Trade-by-trade ledger with timestamps, instrument, and P&L
Year-end account valuation (mandatory for wealth-tax regimes)
Proof of any foreign tax already paid, to claim against home liability under double-tax treaties
FX-conversion rates used to translate amounts into EUR

Tax Reporting Deadlines

Annual Filing Deadline

30 November (online) for Modello Redditi; 30 September if using Modello 730

Withholding by brokers

Italian brokers using the 'regime amministrato' withhold the 26% automatically. CySEC-passported brokers operate under 'regime dichiarativo', meaning the trader must self-declare on Quadro RT and pay through F24.

Recommended Accountants & Software

Many Italian traders use commercialista software like Profis or work directly with a commercialista who handles Quadro RT and Quadro RW filing.

We do not endorse any single product. For active traders we generally recommend a local advisor who has direct experience with CFD/derivative reporting and any cross-border passporting that applies to your broker.

Frequently Asked Questions

How are forex profits taxed in Italy?

In Italy, forex and CFD profits are taxed under Imposta sostitutiva on financial income at a headline rate of 26%. The tax is administered by Agenzia delle Entrate and declared on the Modello Redditi PF — Quadro RT (capital gains) each year.

Do I have to declare forex losses in Italy?

Yes — losses must be declared to use them against gains. Capital losses can be offset against capital gains in the same tax year and carried forward for 4 years against future gains of the same category.

Does my broker withhold tax automatically in Italy?

Is forex trading tax-free anywhere in Italy?

No. There is no tax-free regime for retail FX/CFD trading in Italy.

What is the filing deadline for forex tax in Italy?

For the Italy EUR tax year, the standard deadline is 30 November (online) for Modello Redditi; 30 September if using Modello 730. Active traders should plan for cash to be available before that date to settle any balance owed.

What records do I need to keep in Italy?

Keep annual broker statements and a Quadro RT-compatible profit/loss summary. Italian residents must also declare foreign accounts on Quadro RW and pay IVAFE wealth tax.

Am I a professional trader for tax purposes in Italy?

Most retail traders remain in the standard Imposta sostitutiva on financial income regime. Italy does not have a separate 'professional trader' regime for retail FX. However, if trading is conducted as a business, profits become reddito d'impresa subject to IRPEF and IRAP.

Do EU passporting brokers (CySEC, BaFin) report to my Italy tax authority?

EU passporting brokers are subject to information-exchange under DAC6/CRS, so account holdings may be reported automatically. However, the day-to-day responsibility to declare gains, losses, and dividend-equivalents remains with the trader on the Modello Redditi PF — Quadro RT (capital gains).

Best Brokers for Italy

All EU-regulated, with negative balance protection and segregated client funds.

Italy Country Guide Regulation in Italy

Popular brokers used by Italy traders

eToro8.5EU

Min Deposit

$50

EUR/USD

1.0 pips

Max Leverage

Up to 1:30

FCA

eToro is the world's leading social trading platform, letting EU traders copy successful investors while also offering commission-free stock trading alongside forex.

This broker does not accept new clients from your regionReview

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

XM8.7EU

Min Deposit

EUR/USD

0.6 pips

Max Leverage

Up to 1:30

CySECASICIFSC

XM is ideal for beginner EU traders, offering a $5 minimum deposit, award-winning education, multilingual support in 30+ languages, and CySEC regulation.

Open Account Review

Plus5008.1CFDs onlyEU

Min Deposit

£50

EUR/USD

From 0.8 pips

Max Leverage

Up to 1:30

FCA

Plus500 is a London Stock Exchange-listed broker offering CFD-only trading through its proprietary Plus500 Platform. No commissions & tight spreads; additional fees may apply. CFDs are complex financial products and come with a high risk of losing money rapidly due to leverage.

Affiliate programme not availableReview

76% of retail investor accounts lose money when trading CFDs with this provider.

IG9.2EU

Min Deposit

None

EUR/USD

0.6 pips average

Max Leverage

Up to 1:30

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IG is one of the longest-established retail brokers (founded 1974), offering 17,000+ instruments, a BaFin-regulated EU entity, and an award-winning proprietary platform.

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Disclaimer: This is general information, not professional tax advice. Tax law changes regularly and individual circumstances vary. Always confirm your obligations with a licensed Italy tax advisor or directly with Agenzia delle Entrate before filing.

CFD Risk Warning

This website is for informational purposes only. The content does not constitute investment advice. Trading leveraged products carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. UK retail leverage limits apply (FCA): up to 30:1 on major FX pairs, 20:1 on minor FX, 20:1 on major indices, 10:1 on commodities, 5:1 on equities, 2:1 on crypto.