Which transactions and securities are subject to the Italian Financial Transaction Tax (FTT)?
The Italian Financial Transaction Tax applies to the purchase of securities that:
are issued by Italian companies incorporated in Italy;
trade on regulated markets, whether Italian or foreign;
have a market valuation exceeding €500 million on 1 December of the previous year.
The FTT only applies to the purchase of shares, not the sale.
Some corporate actions may also lead to purchases (e.g. in an acquisition or merger) where the FTT will also apply.
If you’re unsure or have any questions about the FTT, you should seek independent advice
What is the tax rate and the tax base for Italian Financial Transaction Tax?
Usually, to purchase securities domiciled in Italy that are subject to the FTT, you'll pay a 0.1% tax on the purchase price, excluding fees. The tax is calculated based on the price you pay for the security on the day the ownership officially transfers to you.
Currently, Freetrade covers the FTT charge. However, this may change, meaning you may be charged FTT when buying this stock in the future. We’ll let you know when and if this changes.
When you buy and sell the same security on the same day, only the net difference between the purchase and sale amount is recorded and subject to the FTT.
If you’re unsure or have any questions about the FTT, you should seek independent advice.