Italy’s financial transaction tax, often referred to as the “Tobin Tax,” has seen its rates increased for both the transfer of ownership of shares and related high-frequency trading, effective January 1, 2026. The changes, enacted through the 2026 budget law, raise the tax on share transfers from 0.2% to 0.4% and the levy on high-frequency trading from 0.02% to 0.04%, according to an update from the Italian Revenue Agency dated January 16, 2026.
The tax applies to the transfer of property of shares and other participatory financial instruments issued by companies resident in Italy, as well as securities representing them, regardless of the issuer’s residency. The rate is halved for transfers resulting from transactions concluded on regulated markets or multilateral trading systems. Originally introduced in 2013 through the Stability Law (Law 228/2012), the tax also covers transactions on derivatives and high-frequency operations.
The initial 2013 rates were set at 0.2% for share transfers, reduced to 0.12% for those occurring on regulated markets and multilateral trading systems. The current increase represents a significant adjustment to the original framework. The implementation details of the 2013 law were outlined in a decree issued on February 21, 2013, published in the Official Gazette on February 28, 2013.
The financial transaction tax is levied on the purchaser of the operation, even though it is withheld by financial intermediaries resident in Italy. The concept behind the tax, initially proposed by Nobel laureate James Tobin in 1972, aimed to curb speculation and stabilize markets, originally focusing on currency transactions. The European Council had discussed a broader application of such a tax across Europe, but its effectiveness hinged on widespread adoption to prevent investment from shifting to countries without the levy.
Transfers of property occurring through inheritance or donation are exempt from the tax. The tax applied to transfers of property of shares that occur as a result of the conversion of bonds.
