Netherlands vs Italy: Comparing Capital Gains Tax in 2025/2026

If you're an investor, expat, or digital nomad weighing up life between Amsterdam and Rome, understanding the Netherlands vs Italy capital gains tax landscape is essential. Both countries take very different approaches to taxing investment gains, and the differences can have a dramatic impact on your after-tax returns in the 2025/2026 tax year.

In this detailed capital gains tax comparison, we break down how each country taxes gains on shares, property, crypto, and other assets. We'll walk through real-world examples, highlight key exemptions, and explain how double taxation treaties work — so you can plan your finances with confidence.

How Capital Gains Tax Works: A Quick Overview

Before diving into the tax comparison Netherlands Italy, it's important to understand that "capital gains tax" doesn't mean the same thing in every country. Some nations tax actual realized gains (the profit you make when selling an asset), while others tax the presumed return on your wealth, regardless of whether you sold anything.

Netherlands: Does not tax most actual capital gains. Instead, it taxes a deemed (fictional) return on net assets under the Box 3 wealth tax system.
Italy: Taxes actual realized capital gains at a flat rate, with specific rules for different asset types.

This fundamental difference is the single most important thing to grasp in the Netherlands vs Italy capital gains tax debate. Let's explore each system in detail.

Capital Gains Tax in the Netherlands (2025/2026)

The Netherlands has one of the most unusual capital gains tax systems in Europe. Rather than taxing the actual profit you make when selling an investment, the Dutch tax authorities assume you earn a certain return on your assets and tax that presumed return.

The Box 3 Wealth Tax System

Dutch personal income tax is divided into three "boxes":

Box 1: Income from employment and primary residence
Box 2: Income from a substantial interest (generally a 5%+ stake in a company)
Box 3: Income from savings and investments

For most investors, capital gains fall under Box 3. Here's how it works in 2025/2026:

Calculate your net assets (total assets minus debts) as of January 1 of the tax year.
Subtract the tax-free allowance: In 2025, the tax-free threshold is approximately €57,000 per person (€114,000 for tax partners).
Apply the deemed return rates: The government splits your assets into categories — savings, other investments, and debts — each with its own fictional return rate.
Tax the deemed return at 36%.

The deemed return rates for 2025 are set based on the previous year's actual average returns for each asset category. For the "other investments" category (which includes shares, bonds, real estate other than your primary home, and crypto), the deemed return rate has historically been in the range of roughly 5.5%–6.0% or higher. The exact 2025 rate is determined by the government based on market data.

Example: Box 3 Tax on €200,000 in Investments

Let's say you're a single Dutch tax resident with €200,000 in an investment portfolio and no debts:

Tax-free allowance: €57,000
Taxable base: €200,000 − €57,000 = €143,000
Deemed return (assuming 6.04% for investments): €143,000 × 6.04% = €8,637
Tax at 36%: €8,637 × 36% = €3,109

You would owe approximately €3,109 in Box 3 tax — regardless of whether your investments actually gained or lost value that year.

Use our Netherlands Capital Gains Tax Calculator to estimate your Box 3 liability based on your specific asset mix.

Box 2: Substantial Interest Capital Gains

If you hold a substantial interest (5% or more) in a Dutch or foreign company, capital gains on the sale of those shares are taxed under Box 2:

First €67,000 of Box 2 income: taxed at 24.5%
Above €67,000: taxed at 33%

For tax partners, the lower-rate bracket is doubled to €134,000.

Dutch Capital Gains Tax for Non-Residents

Non-residents are generally only subject to Dutch capital gains tax on:

Substantial interests in Dutch companies (Box 2)
Dutch real estate

Non-residents are typically not subject to Box 3 tax on most investment assets unless those assets are connected to Dutch real property.

Key Exemptions and Special Rules

Primary residence: Your own home is taxed under Box 1, not Box 3, and capital gains on the sale of your primary home are tax-free in most cases.
Business assets: If you operate a sole proprietorship, gains may be taxed under Box 1 as business income.
Green investments: Certain government-approved green investments may qualify for additional exemptions.

Capital Gains Tax in Italy (2025/2026)

Italy takes a more conventional approach: you're taxed on your actual realized capital gains when you sell an asset for more than you paid for it.

Standard Rate on Financial Assets

The standard capital gains tax rate in Italy for 2025/2026 is:

26% flat rate on most financial capital gains (shares, bonds, ETFs, crypto, etc.)
12.5% reduced rate on gains from Italian government bonds and similar sovereign instruments

This flat-rate tax (known as imposta sostitutiva) applies to residents who hold investments outside a managed portfolio or who opt for the dichiarazione (tax return) regime.

Crypto Capital Gains in Italy

Italy has clarified its treatment of cryptocurrency gains in recent years. For 2025/2026:

Crypto gains are taxed at the 26% flat rate.
There is a €2,000 annual exemption — gains below this threshold are tax-free.
Gains are calculated on realized profits (i.e., when you sell, exchange, or spend your crypto).

Note: Italy's 2025 budget initially proposed increasing the crypto capital gains rate to 42%, but this was ultimately not enacted at that level. The rate remains 26% for 2025, though investors should monitor legislative developments closely.

Real Estate Capital Gains in Italy

Capital gains on the sale of real property in Italy are subject to different rules:

Properties sold within 5 years of purchase: Gains are taxable, either at the 26% flat rate or as ordinary income (at progressive rates up to 43%).
Properties held for more than 5 years: Capital gains are generally tax-exempt (with certain exceptions for properties acquired through donation).
Primary residence exemption: If the property was your primary residence for the majority of the holding period, gains are typically exempt regardless of the holding period.

Example: Selling Shares in Italy

Imagine you're an Italian tax resident who bought shares for €50,000 and sold them for €80,000:

Capital gain: €80,000 − €50,000 = €30,000
Tax at 26%: €30,000 × 26% = €7,800

You would owe €7,800 in capital gains tax. If you had a loss in the same year, you could potentially offset it against other gains.

Estimate your liability using our Italy Capital Gains Tax Calculator.

Italy's Flat Tax Regime for New Residents

Italy offers an attractive flat tax regime for high-net-worth individuals who transfer their tax residence to Italy. Under this scheme:

You pay a €200,000 annual lump sum on all foreign-source income, including capital gains from foreign assets.
Italian-source income is taxed under normal rules.
The regime lasts up to 15 years.

This can be enormously beneficial for wealthy investors with significant international portfolios. Family members can join the regime for an additional €25,000 each per year.

Italian Capital Gains Tax for Non-Residents

Non-residents are generally taxed on:

Gains from the sale of Italian real estate
Gains from the sale of substantial shareholdings (generally 2%–20%+ of an Italian company, depending on the type of company)
Certain other Italian-source gains

Gains on listed shares below the substantial-interest threshold are typically exempt for non-residents from treaty countries.

Netherlands vs Italy: Side-by-Side Capital Gains Tax Comparison

Here's a summary table comparing the key features of the capital gains tax systems:

Feature	Netherlands	Italy
Tax basis	Deemed return on net wealth (Box 3)	Actual realized capital gains
Standard rate	36% on deemed return (~1.5%–2.2% effective on assets)	26% on actual gains
Government bonds	Included in Box 3	12.5% preferential rate
Crypto	Box 3 deemed return	26% (with €2,000 exemption)
Real estate (non-primary)	Box 3 deemed return	26% if sold within 5 years; exempt after 5 years
Primary residence gains	Generally exempt	Generally exempt
Substantial interest	24.5%/33% (Box 2)	26% (flat rate)
Loss offset	Limited (Box 3 redesign pending)	Yes — losses can offset gains, carry forward for 4 years
Tax-free allowance	~€57,000 per person (Box 3)	€2,000 for crypto; none for other financial assets
Flat tax for new residents	30% ruling (partial income exemption)	€200,000 lump sum on foreign income

Which System Is More Favorable?

The answer depends entirely on your situation:

If your investments perform poorly or you have losses: The Netherlands can be more expensive because you're taxed on a fictional return even when your actual returns are negative. Italy only taxes actual gains.
If your investments perform very well: The Netherlands may be cheaper because the effective tax rate on high-performing assets is lower than Italy's 26% flat rate. For instance, if your portfolio gains 15% but the deemed return is only 6%, you're effectively taxed on less than half your real profit.
For long-term property investors: Italy is often more favorable, since gains on property held over 5 years are typically exempt.
For government bond investors: Italy's 12.5% rate is significantly more attractive.

Double Taxation Treaty: Netherlands and Italy

The Netherlands and Italy have a comprehensive double taxation agreement (DTA) that prevents you from being taxed twice on the same income. Key provisions relevant to capital gains include:

Shares: Capital gains from shares are generally taxable only in the country of residence — unless they relate to real estate companies or substantial interests in certain cases.
Real property: Gains from the sale of immovable property can be taxed in the country where the property is situated.
Tax credits: If income is taxed in both countries, the treaty typically provides a tax credit in your country of residence for taxes paid abroad.

Common Mistakes to Avoid

Assuming "capital gains tax" means the same thing in both countries. The Dutch Box 3 system is fundamentally different from Italy's realized-gain approach.
Forgetting to report worldwide income. Both countries tax residents on worldwide income. Failing to declare foreign investments can lead to penalties.
Ignoring the DTA. Without claiming treaty benefits, you could end up paying tax in both countries.
Not considering the Italian flat tax regime. If you're a high-net-worth individual moving to Italy, the €200,000 lump-sum regime could save you significantly.
Overlooking the Dutch Box 2 rules. If you hold 5%+ in a company, your gains are taxed differently (and usually more heavily) than under Box 3.

Practical Scenarios: Netherlands vs Italy Capital Gains Tax

Scenario 1: A €500,000 Stock Portfolio

Netherlands (Box 3):

Taxable base after exemption: €500,000 − €57,000 = €443,000
Deemed return at ~6%: €26,580
Tax at 36%: ~€9,569

Italy (if you sell with a €50,000 gain):

Tax at 26%: €50,000 × 26% = €13,000

Italy (if you don't sell — unrealized gains):

Tax: €0 (Italy only taxes realized gains)

In this scenario, the Netherlands taxes you regardless of whether you sell, while Italy only taxes you when you realize a gain. For buy-and-hold investors, Italy can be more tax-efficient — until you sell.

You can model your own scenarios with our Netherlands Capital Gains Tax Calculator and Italy Capital Gains Tax Calculator.

Scenario 2: Selling a Rental Property After 6 Years for a €100,000 Gain

Netherlands:

During the 6 years of ownership, the property's value is included in Box 3 each year and taxed on the deemed return.
Upon sale, the actual gain is not separately taxed.

Italy:

Since the property was held for more than 5 years, the €100,000 gain is completely tax-free.

For long-term real estate investors, Italy offers a clear advantage.

Frequently Asked Questions

Do I pay capital gains tax in the Netherlands when I sell shares?

Not directly. The Netherlands does not tax the actual capital gain on the sale of shares for most individuals. Instead, the value of your shares is included in the Box 3 deemed-return calculation, and you're taxed on a fictional return each year. The exception is if you have a substantial interest (5%+), which is taxed under Box 2.

Is Italy's 26% capital gains tax rate applied to all investments?

No. While 26% is the standard rate for most financial assets (shares, ETFs, crypto, corporate bonds), Italian government bonds and equivalent sovereign instruments benefit from a reduced 12.5% rate. Real estate gains may also be treated differently depending on the holding period.

Can I offset capital losses in Italy?

Yes. Capital losses can be used to offset capital gains of the same category. Unused losses can be carried forward for 4 years. In the Netherlands, loss offsetting under Box 3 is more limited and operates differently due to the deemed-return system.

What happens if I move from the Netherlands to Italy?

You may be subject to an exit tax in the Netherlands on substantial interests (Box 2) when you emigrate. For Box 3 assets, the tax ceases to apply once you are no longer a Dutch tax resident. In Italy, you would begin being taxed as an Italian resident, potentially benefiting from the flat tax regime for new residents.

How does the Dutch 30% ruling compare to Italy's flat tax regime?

The Dutch 30% ruling allows qualifying expat employees to receive up to 30% of their salary tax-free for up to 5 years (being phased down). Italy's flat tax regime covers all foreign-source income for a €200,000 annual lump sum for up to 15 years. They serve different purposes: the Dutch ruling is for employees, while Italy's regime targets high-net-worth individuals.

For a broader look at how income is taxed in each country, try our Netherlands Income Tax Calculator and Italy Income Tax Calculator.

Conclusion: Key Takeaways

The Netherlands vs Italy capital gains tax comparison reveals two fundamentally different philosophies:

The Netherlands taxes the presumed return on your wealth annually under Box 3, regardless of actual gains or losses. This provides predictability but can feel unfair in down markets.
Italy taxes actual realized gains at a flat 26% rate (or 12.5% for government bonds), offering more flexibility for buy-and-hold investors but a higher marginal rate when gains are crystallized.

Key takeaways for 2025/2026:

Buy-and-hold investors may prefer Italy, where unrealized gains aren't taxed.
High performers may benefit from the Dutch system, where the effective tax rate on large gains is lower than 26%.
Property investors should note Italy's 5-year exemption rule — a significant advantage over the annual Box 3 charge in the Netherlands.
High-net-worth individuals relocating to Italy should explore the €200,000 flat tax regime.
Always consider the double taxation treaty to avoid paying tax in both countries.

Ultimately, the "better" system depends on your investment style, asset types, income level, and residency plans. Use our free calculators to model your specific situation:

This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.