Unimpresa warns: Italian banks enjoy a light tax burden compared to businesses and workers. A fairer system is urgently needed.
A feather-light tax burden for the banks
In 2024, Italian banks posted net profits of €46.5 billion but paid only €11.2 billion in taxes. That equates to an effective tax rate of 24.2%—far below the 40%+ typically faced by workers and small businesses. This data comes from a report by Unimpresa’s research center, highlighting a growing tax disparity.
The comparison is stark: while SMEs struggle under a crushing tax burden, banks benefit from a regime that feels like a fiscal paradise.
Seven years of record profits and low taxation
Between 2018 and 2024, Italian banks generated a total of €162 billion in net profits, on which they paid €33.9 billion in taxes, averaging a 20.9% tax rate. Total revenue for the sector reached €626.3 billion, with €391.3 billion in costs and €331.2 billion in net interest margin—the profits from lending activities.
Bank profitability has surged, especially in the last two years, driven by the interest rate hikes from the European Central Bank, which widened profit margins without significantly increasing costs.
2020: The pandemic anomaly
Only one year stood out from the trend: in 2020, amid the pandemic, net profits dropped to €2.2 billion, but the tax rate spiked to 61.5%—a result not of higher taxation, but of drastically lower profits.
In the other six years, tax rates stayed below 25%, with minimum levels in 2018 (13.6%) and 2021 (13.8%).
It’s not about legality, but fairness
According to Unimpresa, this situation is largely due to legal tax benefits, the carry-forward of past losses, and other legitimate tax optimization strategies. But legality doesn’t equal fairness: should one of the most profitable sectors contribute so little to the system?
As Unimpresa’s vice president Giuseppe Spadafora states: “This is not about blaming banks, but opening a real conversation on fiscal justice.”
Can we redistribute the tax burden more fairly?
Unimpresa is not calling for sudden new taxes, but rather a transparent fiscal reform that doesn’t punish those who produce, invest, and create jobs. Otherwise, warns Spadafora, the gap between finance and the real economy will only grow wider.
FAQ
- What was the tax rate for Italian banks in 2024?
24.2% on €46.5 billion in net profits. - How much did banks pay in taxes in 2024?
€11.2 billion. - What is the average tax rate from 2018 to 2024?
20.9% on €162 billion in cumulative net profits. - How does this compare to SMEs?
SMEs often face tax burdens exceeding 60%. - Why was the 2020 tax rate so high?
Profits dropped drastically due to the pandemic. - What role did the ECB play?
Interest rate hikes boosted banks’ lending margins. - Is this tax avoidance?
No—it’s legal tax optimization, but still raises equity concerns. - What is Unimpresa proposing?
A political debate for a fairer tax redistribution system. - What is the net interest margin?
Profits from banks’ lending operations. - What’s the risk for the economy?
A growing divide between the financial sector and real economy.