Selling a
BTP (Buono del Tesoro Poliennale) at maturity is a simple operation and involves several considerations. Here's what to know:
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Automatic Redemption
- At Maturity: When a BTP reaches its maturity date, the nominal value of the security is automatically reimbursed to the investor. There is no need to sell the security; the payment is made directly by the Italian government.
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Coupons
- Receiving Coupons: During the life of the BTP, the investor receives semi-annual coupons. Even at maturity, in addition to the repayment of the principal, you will receive any final coupon payments.
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Yield
- Fixed Yield: The total return you get from the BTP at maturity is determined by the coupons received and the nominal value reimbursed. There are no price fluctuations to consider, since the reimbursement is guaranteed at maturity.
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Taxation
- Withholding Tax: Interest (coupons) is subject to a 12.5% withholding tax. There are no capital gains to tax, since the repayment occurs at the nominal value.
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Final Considerations
- Final Planning: Holding a BTP until maturity can be an advantageous strategy for those seeking stability and predictable income.
- Investment Objectives: Make sure that your decision to hold the BTP until maturity is in line with your financial objectives and your liquidity needs.
Conclusion
Selling a BTP at maturity is an automatic and safe process, which allows you to receive the nominal value of the security and the coupons.