Cashing in an Italian life insurance policy — the tax due
When an Italian life insurance policy is surrendered or matures, only the return is taxed — the difference between the capital you receive and the premiums you paid — through a 26% substitute tax withheld by the insurer. Surrendering for 60,000 euros after paying 50,000 euros of premiums gives a 10,000 euro return and 2,600 euros of tax. If you get back less than you paid in, nothing is due.
2026 rules — verified on September 25, 2026Free, no account
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Sources and assumptions
- Gazzetta Ufficiale — DL 24 aprile 2014 — tax year 2026, verified on September 25, 2026
Excerpt from the source : « Le ritenute e le imposte sostitutive sugli interessi, premi e ogni altro provento di cui all'articolo 44 del testo unico delle imposte sui redditi, di cui al decreto del Presidente della Repubblica 22 dicembre 1986, n. 917, e sui redditi diversi di cui all'articolo 67, comma 1, lettere da c-bis) a c-quinquies), del medesimo testo unico, ovunque ricorrano, sono stabilite nella misura del 26 per cento. »
Calculation assumptions
- The beneficiary is an individual resident in Italy, acting outside any business; the insurer applies the substitute tax when it pays out.
- The share of the return earned on Italian government bonds and equivalent securities is taxed more lightly by the insurer: this calculation does not apply that reduction, so it shows the maximum tax.
- Full surrender or maturity of the contract. A partial surrender, which requires working out the share of premiums attributable to the amount withdrawn, is not calculated.
- Capital paid to beneficiaries on the death of the insured person follows its own rules and is not calculated.
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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.