How are Italian CFDs taxed?

Italian derivatives are subject to the Italian Financial Transaction Tax (IFTT) – sometimes known as the Tobin tax – which came into effect on 3 September 2013.

This tax applies regardless of your place of residence or the place where your transactions have been concluded.

To comply with Italian law, we apply the tax to all CFD trades that have an Italian index or in-scope Italian share as their underlying market.

How does the tax apply for CFDs?

The tables below show how much tax you will be charged when trading each CFD product. Any tax due will be charged to your account at the point of opening your trade only.

Please note that these amounts are indicative only and may be subject to change. For the latest information about tax charges, please contact our helpdesk.

Indices

You will be charged the Tobin tax according to the following table if you trade CFDs on the Italy 40. In addition, as a result of the increased cost in providing CFDs on the Italy 40, we are increasing our spread on this market.

The table below shows the charges per contract in case the index is quoted below the level of 20.000 points.

Market Tax per contract
Italy 40 cash 10
Italy 40 future OTC 0.75
Italy 40 cash MINI 5
Italy 40 future OTC MINI 0.38

Should the underlying Italian index quote above 20.000, the charges for Tobin tax will change according to the table below:

Market

Tax per contract

Italy 40 cash 50
Italy 40 future 3.75
Italy 40 cash MINI 5
Italy 40 future OTC MINI 0.38

Shares

Only CFDs based on Italian shares with a market capitalisation above 500 M as set out by the Ministry of Finance in December 2012 are currently in scope and will be subject to the tax. This is subject to change by the Italian government. The tax charge will be based on the notional value of the trade.

Notional value of the trade (€) Tax
0 - 2500 0.25
2500 - 5000 0.50
5000 - 10,000 1
10,000 - 50,000 5
50,000 - 100,000 10
100,000 - 500,000 50
500,000 - 1,000,000 100
>1,000,000 200

Options

For call, put and digital 100 options that have the Italy 40 as their underlying market, we’ll calculate the tax due based on the premium of the option.

All digital 100s will be charged 0.02€ per contract. All options will be charged 0.02€ per contract providing the premium is less than 500€. If the premium is greater than 500€ the charge may be higher – please contact the helpdesk for details.

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