You say 2008, and you've immediately said economic crisis. How could we forget it? It was one of the most severe financial crises in history, alongside those of 1929 and 1973. Its macroeconomic and microeconomic origins led to significant repercussions, including in Italy, where there was a notable tightening of the wealth tax. And it is precisely during times of crisis that discussions about wealth tax often arise.

But what exactly is the wealth tax? Do we really know it? Which assets are at risk of being taxed? And why is investing in gold advantageous in the face of a wealth tax? All the answers below..

What is the wealth tax?

To understand what a wealth tax is, it is first necessary to explain the difference between wealth and income. The latter corresponds to the wealth earned from one’s work. The situation is different for wealth, which refers to the total value of assets owned by an individual or an organization.

This, then, is the wealth tax: a levy imposed on citizens' assets, often used by governments as a measure to reduce public debt during severe economic crises. There are various types of wealth taxes, which are outlined below:

• Real: A tax that applies to a single component of the taxpayer’s wealth. An example is the IMU (Imposta Municipale Unica), which affects a portion of the taxpayer’s real estate assets.
• Subjective: A tax that applies to the taxpayer’s entire wealth, including both financial and real estate assets. Currently, there is no subjective wealth tax in Italy, though it exists in other countries.
• Ordinary: A tax applied annually as a structural part of the tax system.
• Extraordinary: A one-time levy, usually imposed in times of emergency (such as the forced withdrawals that have often been proposed—but rarely implemented—during financial crises).

Moreover, this type of tax can be fixed if it is paid by all taxpayers in a uniform fixed amount, or variable if it changes based on the taxpayers' assets. In the case of a variable wealth tax, a protection threshold, known as an exemption, is usually provided, within which no tax is levied..

What assets are at risk of being taxed?

In theory, a wealth tax can affect anyone who owns assets such as real estate (e.g., a house) or financial assets (e.g., stocks, bonds, or even a bank account), regardless of their income. For instance, simply owning a house would require the owner to pay a fixed-percentage tax, periodically calculated based on the property's cadastral value. This percentage is not linked to income but may depend solely on the characteristics of the property.

In Italy, some financial products are already subject to a form of wealth tax, namely the stamp duty. This applies to bank accounts, securities accounts, and postal savings bonds. But that's not all—there are other examples of taxes that target wealth. Consider, for example, the IMU (municipal property tax), which applies to second homes or luxury primary residences, as well as inheritance and gift taxes, which apply to assets transferred through inheritance or donation.

And what about gold? How does it fit into wealth taxation? Is there a tax on gold? Are there taxes on physical gold or on the sale of gold? Let’s explore these aspects below.

How to safeguard your savings? Diversify your portfolio with physical gold.

Well, yes: owning a percentage of physical gold—in bars, coins, or grams—means safeguarding part of your savings from a potential wealth tax. If you're wondering why investing in gold is a good idea, know that there are multiple reasons. Unlike other assets that savers turn to for allocating their funds, which are tied to the economic/monetary cycle and the credit cycle, gold is completely uncorrelated with the risks of the economic, financial, and political system.

Physical gold, in fact, is not subject to taxes, neither at the time of purchase (as no VAT is applied to gold) nor for its possession, as no declaration of ownership or management of any amount is required. Investing in gold is solely linked to fluctuations in the gold market.

But the advantages of gold go far beyond that. For instance, it is highly liquid, as gold can be resold at any time and anywhere, quickly converting the investment into cash. It also allows for diversified investments and scalable investments. By purchasing physical gold, one can divide the investment into different denominations according to individual resources and needs.