Italy mulls flat tax to bring private gold holdings into formal economy

Italy is considering a flat tax on households to declare gold off the books, an amendment to the 2026 budget law showed, in a move that could potentially net the state more than 2 billion euros ($2.3 billion).

The proposal would allow people to pay a 12.5% ​​tax to certify the market value of bullion, gold jewelry and collectible coins for which purchase records are missing, the same rate as for government bonds. Certification must be completed before June 2026.

Under current rules, failure to provide proof of purchase can result in a 26% tax on the full sales value, rather than just the actual capital gain.
This has discouraged people from selling their inherited gold on the official market and pushed some transactions to informal or undeclared channels, limiting market liquidity and tax revenues, lawmakers from the co-ruling League and the Forza Italia party said.

Some estimates put the gold in private hands in Italy at between 4,500 and 5,000 metric tons, worth approximately €500 billion at current prices.
The Italian network of “Compro Oro” stores (businesses that buy and sell gold) has seen a sharp increase in activity as prices reached record levels. Sales of used gold increased about 25% in 2025, with more than 1.2 million transactions per month, driven by households exchanging antique coins and jewelry, according to Metropolitan Magazine, an Italian publication.

Under the proposed measure, taxpayers who choose to participate would declare their holdings at market value, pay the substitute tax in one or three annual installments and obtain an increased tax value base for future sales. The process would be supervised by authorized intermediaries and advisors, with strict anti-money laundering controls.

Supporters say the move could generate significant one-off revenue for the Treasury, while improving transparency in a market long characterized by opaque holdings and informal family transfers. Assuming that 10% of private investment gold is certified, the project estimates additional income of up to €2.08 billion.

The proposal also seeks to encourage the “legal circulation” of gold by eliminating what stakeholders see as a punitive regime for people who cannot document purchases made years (or generations) ago. The amendment still needs to pass parliamentary scrutiny and government inquiry.