Italian Government Rollback of Capital Gains and Dividend Exemption Restrictions

31 March 2026

A significant throwback in Italian capital gains and dividends taxation: Italian newly issued Law Decree eliminates the restrictions introduced starting from 2026, limiting the 95% exemption on dividends and capital gains to shareholdings meeting specific thresholds, namely a minimum 5% participation or a tax basis of at least EUR 500,000. A very well received development for investors looking at exits, reorganisations, and distributions on Italian investments.

Download PDF