{"id":123552,"date":"2026-01-09T09:01:40","date_gmt":"2026-01-09T09:01:40","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=123552"},"modified":"2026-01-09T09:01:40","modified_gmt":"2026-01-09T09:01:40","slug":"italy-private-client","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/italy-private-client\/","title":{"rendered":"Italy: Private Client"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-123552","comparative_guide","type-comparative_guide","status-publish","hentry","guides-private-client","jurisdictions-italy"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">SLCLEX<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/01\/SLCLEX-LOGO.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">SLCLEX<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/01\/SLCLEX-LOGO.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Private Client laws and regulations applicable in Italy<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which factors bring an individual within the scope of tax on income and capital gains?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax status of an individual is the starting point for applying the correct taxation in Italy. According to the Italian Tax Code, both Italian-resident and non-resident individuals are subject to taxation on income and capital gains in Italy, although on a different basis.<\/p>\n<p>Non-resident individuals are subject to Italian Personal Income Tax (\u201cIRPEF\u201d) only on income sourced in Italy. Therefore, foreign-source income and capital gains are not relevant for Italian tax purposes.<\/p>\n<p>Italian tax residents, instead, are liable to IRPEF on their worldwide income, regardless of where it is produced. As a consequence, foreign-source income and capital gains also fall within the Italian tax net.<\/p>\n<p>Starting from 2024, the Italian Government has introduced significant changes to the connecting factors for determining tax residency, as provided for under Article 2 of the TUIR (Italian Tax Code).<br \/>\nAn individual is considered an Italian tax resident if, for the greater part of the tax year (i.e., more than 183 days), he\/she:<\/p>\n<ul>\n<li>Is physically present in the Italian territory. Even part of a day counts as a full day; thus, if an individual spends only one hour in Italy, it is still considered a full day for tax purposes.<\/li>\n<li>Has the \u201ccentre of vital interests\u201d in Italy \u2013 defined as the centre of personal and family relations (e.g., spouse and close family).<\/li>\n<li>Has his\/her habitual abode in Italy.<\/li>\n<li>Is registered with the municipal register of the resident population (\u201cAnagrafe\u201d). This creates a rebuttable presumption, meaning that the individual may provide evidence to the contrary.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the taxes and rates of tax to which an individual is subject in respect of income and capital gains and, in relation to those taxes, when does the tax year start and end, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax is levied on the total income of the individual, which, for residents, consists of all income earned worldwide and, for non-residents, only of income produced in Italy.<\/p>\n<p>Individual income is classified into categories (Article 6 of the TUIR): real estate income, capital income, employment income, self-employment income, business income, and miscellaneous income (as listed under Article 67 TUIR).<br \/>\nGross tax is calculated by applying progressive tax rates to total income, net of deductible expenses. The IRPEF due by the taxpayer is then determined by subtracting from the gross tax the applicable tax credits and deductions provided by law. These include social security and welfare contributions, deductions for dependants (spouse and children), and expenses incurred during the year such as healthcare, education, mortgage interest, etc.<br \/>\nThe progressive IRPEF rates applicable from fiscal year 2026 are as follows:<\/p>\n<ul>\n<li>Up to \u20ac28,000 \u2013 23% of taxable income<\/li>\n<li>\u20ac28,000 to \u20ac50,000 \u2013 33% on the portion of income exceeding \u20ac28,000<\/li>\n<li>Over \u20ac50,000 \u2013 43% on the portion of income exceeding \u20ac50,000<\/li>\n<\/ul>\n<p>Individuals may also be subject to regional and municipal surcharges, depending on their place of residence. Regional surcharges range from 1.23% to 3.33% of taxable income, while municipal surcharges range from 0% to 0.9%. A typical example of a municipal tax is the waste tax (\u201cTARI\u201d), introduced to cover waste collection and disposal costs. It is payable by anyone who owns or occupies premises or open areas.<\/p>\n<p>Regarding capital gains taxation, this may apply to gains arising from the transfer of real estate or related rights, as well as from transactions involving financial instruments. In the case of real estate, a 26% tax applies to speculative gains (i.e., sales occurring within five years of acquisition). For financial instruments, the applicable tax rate is also 26%, except for certain Italian government securities, which are taxed at 12.5%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous tax regimes for individuals directly investing in or holding certain types of assets from an income tax or capital gains tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Italian special tax regimes are:<\/p>\n<ul>\n<li>the regime applicable to non-residents (see answer 13), and<\/li>\n<li>the so-called \u201cImpatriates\u201d regime<\/li>\n<\/ul>\n<p>The Impatriates Regime is a tax incentive designed to:<\/p>\n<ul>\n<li>attract highly qualified workers to Italy;<\/li>\n<li>encourage the return of individuals living abroad;<\/li>\n<li>promote the inflow of new skills into the Italian labour market.<\/li>\n<\/ul>\n<p>Under this regime, income treated as employment income, as well as self-employment income derived from the exercise of arts or professions and produced in Italy, up to an annual limit of \u20ac600,000, is included in the taxpayer\u2019s total taxable income only to the extent of 50% of its amount.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Withholding taxes are a mechanism whereby a withholding agent settles the taxes due by another party (the taxpayer). This substitution occurs when the withholding agent holds a gross amount that represents income payable to the taxpayer, who is the person legally liable for the tax.<\/p>\n<p>Withholding taxes are regulated under Articles 23 to 30 and Article 64 of Presidential Decree 600\/1972; additional, more detailed provisions are contained in Presidential Decree 917\/1986 (the TUIR).<\/p>\n<p>There are two types of withholding taxes:<\/p>\n<p><strong>Withholding on account (withholding as an advance payment):<\/strong><\/p>\n<p>This is an advance payment of the tax ultimately due by the taxpayer. In this case, the taxpayer must declare the income in the tax return, compute the actual tax liability, and deduct the amount of tax withheld at source. This is a form of partial withholding, typically applied by employers on salaries. The rate for withholding on account is generally 20% for residents. For non-residents earning income in Italy, the rate is 30%.<\/p>\n<p>Entities required to operate withholding taxes for IRPEF purposes include: limited liability companies, joint-stock companies, cooperative companies, European companies, public bodies, private entities and trusts, Italian-resident collective investment schemes, simple partnerships, limited partnerships, individuals carrying out professional activities, individuals engaged in commercial or agricultural activities, and condominiums.<\/p>\n<p><strong>Final withholding tax (withholding in full discharge):<\/strong><\/p>\n<p>This type of withholding corresponds to the full amount of tax due by the taxpayer and definitively extinguishes the taxpayer\u2019s obligation. Income subject to a final withholding tax does not need to be reported in the tax return. This applies, for example, to dividends or certain capital gains received by non-resident individuals.<\/p>\n<p>For Italian government securities, the applicable final withholding tax rate is lower, at 12.5% on the income or gains realised.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction approach the elimination of double taxation for individuals who would otherwise be taxed in the jurisdiction and in another jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy signed many treaties to avoid double taxation; those become part of the legal system at the end of a ratification process by Parliament followed by an ordinary law, which gives full and complete execution to the treaties.<\/p>\n<p>The updated list includes more than 100 bilateral treaties, most based on the OECD model.<\/p>\n<p>Under the Double Taxation Conventions, the taxpayer may request:<\/p>\n<ul>\n<li>a refund, by the source state, of any tax levied more than the limit established in the Conventions.<\/li>\n<li>the immediate application of the conditions specified in the Conventions.<\/li>\n<\/ul>\n<p>For states in which there is no double-taxation treaty in force, instead, residents in Italy are subjected to taxation on the worldwide income, this means also on the income produced abroad.<\/p>\n<p>Regarding the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting of 2016, Italy is a signatory state of the instrument, which however is still not ratified nor entered into force<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a wealth tax and, if so, which factors bring an individual within the scope of that tax, at what rate or rates is it charged, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Italy, there is no \u201cwealth tax\u201d; however, there is some taxation that affects certain property.<\/p>\n<p>The main types of assets taxed in Italy with wealth taxation are real estate and financial assets. They can be summarised as follows:<\/p>\n<ul>\n<li>IMU: it is levied on the cadastral value of real estate, except for main residences. The revenue is collected by local governments. The current basic rate is 0.86 per cent, but municipalities can raise it up to a ceiling of 1.06 per cent.<\/li>\n<li>IVIE: tax on the value of real estate located abroad, paid by resident individuals who own real estate abroad. The rate of 1.06 per cent is applied to the cadastral or market value of the property.<\/li>\n<\/ul>\n<p>Regarding wealth taxes on financial product, an example is the IVAFE, due by individuals, resident in Italy, who hold financial products, current accounts, and savings books abroad. The rate is 2\u2030 on the value of financial products held abroad. If such products are held in jurisdictions with privileged (low-tax) regimes, the rate increases to 4\u2030.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is tax charged on death or on gifts by individuals and, if so, which factors cause the tax to apply, when must a tax return be submitted, and at what rate, by whom and when must the tax be paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Gift and estate taxes are applied on transfers of property and rights, either gratuitously or by reason of death, to assets of the deceased or the donor resident in Italy at the date of the death, or donation. For non-resident deceased or donor, it applies only for assets located in Italy (save for some cases of assets registered in public registries).<\/p>\n<p>The gift tax applies to donations stipulated by public deed (Articles 769 and 782 of the Italian Civil Code), and, in general, to gratuitous transfers. The gift or inheritance tax base is the total net value of the assets donated to each beneficiary, considering deductibles that depends on the relationship between the deceased and the heirs.<\/p>\n<p>The tax rates amount to:<\/p>\n<ul>\n<li>4% of the transfer for heirs directly related to the de cuius or donor, with 1.000.000 euros deductibles each;<\/li>\n<li>6% of the transfer for siblings of the deceased or donor, with 100.000 euros deductibles each;<\/li>\n<li>6% of the transfer for relatives up to the fourth degree, with no deductibles;<\/li>\n<li>8% of the transfer for beneficiaries not related to the deceased or donor, with no deductibles.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax reliefs available on gifts (either during the donor\u2019s lifetime or on death) to a spouse, civil partner, or to any other relation, or of particular kinds of assets (eg business or agricultural assets), and how do any such reliefs apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For inheritance and gift taxes, the taxation rate is reduced in comparison with the rate for not relatives (see question 7).<\/p>\n<p>Heirs or donors that do not own a house can, after accepting the inheritance, take advantage of the first home tax relief (mortgage and cadastral tax at \u20ac200 fixed rate), if the requisites disciplined by law are met.<\/p>\n<p>As of 2006, the &#8216;family pact&#8217; was introduced. This institute derogates from Italian succession pact principles in order to allow greater movement of businesses and companies. This contract (which must necessarily be signed in front of a public notary) allows the entrepreneur to freely dispose of his company or the owner of company shares to dispose of them for the period after his death, provided that he agrees to this with his family members. In order to protect the excluded legitimates, it is stipulated that the assignees of the business shall liquidate the latter, if they do not renounce it in whole or in part, with a sum of money corresponding to the value of the legitimates, without prejudice to the possibility for the contracting parties to agree on a total or partial liquidation in kind. Transfers effected by means of family pacts as referred to in Articles 768-bis et seq. of the Civil Code in favour of descendants, of businesses or branches of businesses, of shares and of shares are not subject to inheritance and gift tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the tax laws encourage gifts (either during the donor\u2019s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Accordingly with the legislative decree n.117\/2017 (Code of the Third Sector, or CTS), the no-profit entities (such as Onlus, ODV and APS incorporated in the Registry for Entities of the Third Sector) are not subjected to inheritance or gift tax and to the mortgage and cadastral taxation for gratuitous transfers. This normative includes cooperatives and companies exercising activities for the exclusive pursuit of civic, solidarity and socially useful purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is real property situated in the jurisdiction taxed, in particular where it is owned by an individual who has no connection with the jurisdiction other than ownership of property there?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The transfer abroad, with AIRE registration, of the owner of a property means that the property itself is qualified as:<\/p>\n<ul>\n<li>&#8220;at disposal&#8221;: if the property is not rented out; this means that it is left at the free disposal of the owner and that no lease has been registered on it.<\/li>\n<li>&#8220;rented&#8221;: if the property is rented out.<\/li>\n<\/ul>\n<p>In any case, the property will be subject to IMU, to the extent defined by the municipality where the property is located, and to direct taxes if the property is leased. IRPEF is calculated on the basis of the progressive tax rate scale (see question 2); the &#8216;cedolare secca&#8217;, on the other hand, allows you to pay a fixed tax (21%) on the rental, freeing you from the tax rate.<\/p>\n<p>For other types of taxation, such as TASI (tax for indivisible services), levied on the basis of the value of the property, and TARI (tax on waste), the rate is defined by the municipality where the property is rented out, and may also be levied on non-residents. it is necessary to check the municipal regulations.<br \/>\nFor IMU purposes, if the real estate meets the requirements to be considered \u201cfirst home\u201d, the owner who resides outside of Italy can pay IMU with a benefit (2\/3 of the set rate). Municipalities can also allow benefitted rates for TASI and TARI.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any specific rules in relation to the taxation of digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Starting from 1 January 2026, the tax rate on capital gains and on income derived from the holding (staking) of crypto-assets is 33%. An exception applies to tokens pegged to the euro (MiCAR-compliant), which will be taxed at 26%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are taxes other than those described above imposed on individuals and, if so, how do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals are subjected also to indirect taxation, such as VAT, and some custom duties.<\/p>\n<p>The 4 VAT rates in force in Italy are:<\/p>\n<ul>\n<li>22%, ordinary rate applied in most cases;<\/li>\n<li>4%, reduced rate applied, for example, on food, beverages and agricultural products;<\/li>\n<li>5%, reduced rate applied on, for example, some medicals;<\/li>\n<li>10%, reduced rate applied, for example, on pellets and specific extraordinary maintenance work on public housing buildings.<\/li>\n<\/ul>\n<p>There are also services that are exempt from VAT (e.g., medical examinations, education, insurance services or specific financial services).<\/p>\n<p>Stamp duty is an indirect tax levied by the state for the registration of certain deeds and is governed by DPR No 131\/1986. It has the purpose of remunerating the State for the service it in keeping track of deeds to give them legal certainty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous special tax regimes for individuals from a wealth tax, inheritance\/estate tax or gift tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax regime for new residents is dedicated to individuals transferring their residence to Italy and envisages a substitute tax on their foreign income.<\/p>\n<p>This beneficial regime aims at enhancing investments and attracting to Italy high-net-worth individuals. This tax regime is available for &#8220;newly resident&#8221; individuals in Italy, who (regardless of their nationality or domicile) have been non-tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy.<\/p>\n<p>The incentive regime may also be extended to the family members of these individuals. High-net-worth individuals transferring their tax residence to Italy are enabled to apply a substitute tax to their foreign income, amounting to \u20ac200,000 for each fiscal year, in lieu of the Italian Income Tax.<\/p>\n<p>Therefore, this taxation represents an alternative to the application of the ordinary taxation and the option is valid for a period of 15 years. The election for the regime may be extended to family members through the payment on their foreign income of a substitute tax amounting to \u20ac25,000 per member.<\/p>\n<p>Starting from the year 2026, the transfer of the Tax residence to Italy will have higher costs for high-net-worth individuals, since the amount of the substitute Tax will be increased to \u20ac300,000, and the extension to other family members will require a substitute tax of \u20ac50,000 per member.<\/p>\n<p>Taxpayers may access to the regime submitting an\u202fadvance tax ruling\u202fto the Italian Revenue Agency or exercising the option for substitute taxation in their tax return. Individuals transferring their tax residence must pay inheritance and donation tax only for properties and assets existing within the Italian territory. The only exception concerns capital gains from foreign sources that are taxed in Italy for the first five years of new residence (but it is possible to apply for a ruling not to apply this taxation if one undertakes to remain resident in Italy for more than five years).<\/p>\n<p>The new resident, after paying the first year&#8217;s tax, receives the certificate of tax residence in Italy and can accede to all the network of international treaties against double taxation of which Italy is a member.<\/p>\n<p>As things stand at present, the rule does not require a minimum number of days in Italy for persons participating in this scheme<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Depending on the circumstances in which the individual is in, it should be evaluated if one of the schemes (see question 13) can be applied. Moreover, a tax advisor can help taking the right steps to move from abroad to Italy while reducing taxation using both national and international tax laws.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Once an individual has left (and is no longer connected for tax purposes with) the jurisdiction, does the jurisdiction charge any form of exit tax or retain taxing rights over the individual's directly held assets or structures which they created or have an interest in?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. In Italy there is no exit or retain taxation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main rules of succession, and what are the scope and effect of any rules of forced heirship? Do any forced heirship rules apply automatically, or is it necessary for heirs to bring claims to enforce their rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There may be two kinds of succession:<br \/>\n\u2022 testamentary succession, regulated by a will of the deceased and the mandatory rules of the Italian legal system;<br \/>\n\u2022 legitimate succession, regulated exclusively by law.<\/p>\n<p>A fundamental mandatory rule, that applies in both cases, is a forced heirship called \u201clegitimate quota\u201d. The people who have right on a quota of the deceased\u2019s estate are the spouse (or civil union party), the descendants, the ascendants and other people that share a strict kinship with the deceased.<\/p>\n<p>The legitimate quota is: 1\/2 for the single heir (spouse or only child); if concurrent are the spouse and a child the quota is 1\/3 each, and 1\/3 to the free disposal of the deceased; if there are two or more children, the legitimate quota is reduced to 1\/4 for the spouse and 1\/4 to be divided between children, while 1\/4 remains at the free disposal of the deceased.<\/p>\n<p>In the legitimate succession, the deceased\u2019s estate is divided following this rules: the spouse inherits the entire estate if there is no children; if children are present, the estate is divided between all children and the spouse, in equal part; if there are ascendants, brothers and\/or sisters, the spouse inherits the 2\/3 of the estate, the other concurrent parties divide the 1\/3; if there is no spouse, the estate is divided first between children (natural and legitimate); between ascendants.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Two property regimes are possible in Italy.<\/p>\n<p>The Civil Code provides that, if the spouses do not express any specific will, the legal community of property applies, which consists in the fact that the property acquired during the marriage becomes common to both spouses. Not only the assets but also the debts accumulated following the marriage are considered in the regime.<\/p>\n<p>The spouses may choose a different regime, such as the separation of property, whereby each spouse remains the owner of the property he or she owned before the marriage and that which he or she acquires thereafter.<\/p>\n<p>The spouses may also decide to enter a marriage contract or a matrimonial property trust, in order to freely regulate their property.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors cause the succession law of the jurisdiction to apply on the death of an individual?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Italy the EU Reg. No 650\/2012 is applied with all European member states except Ireland and Denmark.<\/p>\n<p>The EU Regulation guidelines states that the applicable law is the law of the country in which the deceased had his habitual residence at the time of death. It may be the law of either an EU or a non-EU country.<\/p>\n<p>However, if the deceased decides in the will that the applicable law shall be that of his or her home country, the same law applies to the entire succession, regardless<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction deal with conflict between its succession laws and those of another jurisdiction with which the deceased was connected or in which the deceased owned property?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As explained in question 18, the EU Regulation No 650\/2012 defines the rules applied in Italy regarding conflict of laws for both EU and extra-EU states. However, if it is proved that the deceased was more linked to another jurisdiction than the one in which he had habitual residence, then the law of that jurisdiction shall apply.<\/p>\n<p>The courts of the state of the applicable law are competent to rule on the whole of the succession (pursuant to art. 4 of EU Regulation No 650\/2012).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances should an individual make a Will, what are the consequences of dying without having made a Will, and what are the formal requirements for making a Will?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of an individual that dies without a will, the rules of legitimate succession apply (see question 16). The consequence is that, if an individual wants to regulate the transfer of his assets, maybe deciding which particular property goes to a specific person, a will is an extremely important tool.<\/p>\n<p>Regarding the rules of succession, the applicable law is the one defined by the EU Regulation No 650\/2012 even regarding real estate located in Italy; if the deceased has, as a sole connection to Italy, a property, a will is not necessary.<\/p>\n<p>A will can be made with:<\/p>\n<ul>\n<li>a public act, before a notary that writes down the individual\u2019s desires and in the presence of two witnesses;<\/li>\n<li>entirely by the individual, written by hand of the testator, dated and signed (called holographic will).<\/li>\n<\/ul>\n<p>There can be also different forms, e.g. secret will.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The succession is administrated by the heirs (testamentary or legitimate) of the deceased. It may be appointed an executor of the succession, that administrates the assets of the deceased before distribution to the heirs.<\/p>\n<p>The heirs called to the succession can decide if to accept it or not, and to accept it with or without the benefit of inventory. If accepted with the benefit of inventory, the debts of the deceased are satisfied with the assets, and the remaining amount is then divided among the heirs (in the prefixed quotas). In case the estate is accepted as a whole, the debts of the deceased merges with those of the heirs, who become liable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the laws of your jurisdiction allow individuals to create trusts, private foundations, family companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?<\/p>\n<p>Trust is recognised in Italy pursuant to the ratification of the 1985 Hague Convention. There are no specific national laws pertaining trusts. As a consequence, trusts are regulated by the foreign law chosen by the settlor, albeit with the limits provided by Article 15 of the Hague Convention on non-derogable matters.<\/p>\n<p>A structure that is commonly used for asset protection purposes is the societ\u00e0 semplice (simple partnership); this structure is particularly flexible, easy to manage and with high autonomy and privacy. Sometimes it is utilised also as a holding, for participations in family companies and groups.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are these structures constituted and what are the main rules that govern them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts are constituted by written unilateral act, that can be private (without a notary), or public (in front of the notary, with witnesses); it must be noted that, if the trusts relate to real estate or immovables, the constitution of the Trust in front of the notary is mandatory. In Italy there are no specific national laws pertaining trusts, and for this reason they are regulated by the foreign law chosen by the settlor, albeit with the limits provided by Article 15 of the Hague Convention, that sets the non-derogable rules of the Italian legal system.<\/p>\n<p>For simple partnership, the memorandum of association is not subject to any special formalities. The company contract is not subject to particular forms, except those required by the nature of the assets transferred. The written form is always required, pursuant to Article 1350 of the Civil Code:<\/p>\n<p>In the case of contribution of movable property or other rights in rem in immovable property;<\/p>\n<p>In the case of conferment of the use of the same for an indefinite period or in any case for a period exceeding nine years.<\/p>\n<p>No minimum capital is required. The social contract of the simple partnership has certain limitations, concerning the object of the company, as it cannot engage in commercial activities. The simple partnership is governed by the Civil Code starting with Article No. 2251 and ending with Article No. 2290, and by its own bylaws<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the registration requirements for these structures and what information needs to be made available to the relevant authorities? To what extent is that information publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts have no registration requirements in Italy; regarding the submitting of information on the beneficial owners, the Italian registry, supposed to enter into force in October 2023, is currently suspended.<\/p>\n<p>Regarding simple partnerships, the Civil Code does not require this type of company to be registered in the Commercial Register, pursuant to Article 2251 of the Civil Code. There is, however, an obligation to register in a section, known as &#8216;special&#8217;, of the Companies Register pursuant to Article 2 of Presidential Decree No. 558 of 14\/12\/1999, which, however, has the function of register certification and publicity-notification.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Regarding trusts direct taxation, the Italian tax regime identifies two types of trust:<\/p>\n<ul>\n<li>transparent trust, when the beneficiaries are appointed and generalised in the trust deed; the beneficiaries are subjected to taxation on their share of income with IRPEF rates;<\/li>\n<li>opaque trust, when the beneficiaries are not appointed; the taxation falls on the trust, with IRES (Corporate Income Tax, non-progressive) rate.<\/li>\n<\/ul>\n<p>Regarding indirect taxation, the Italian tax Agency clarifies that the transfer of assets and rights into trusts does not in itself constitute a taxable transfer but &#8220;represents a generally neutral act, which does not give rise to a transfer of wealth liable to indirect taxation\u201d. Therefore, the transfer of trust funds into the trust is subject only to a fixed tax of 200 Euro regardless of the value of the assets. Consequently, the inheritance and gift tax are due only in the moment of the effective transfers of the trust fund assets to beneficiaries. From 2025, the settlor have the option to pay the gift tax in advance (at the time the assets are transferred into the trust fund). This way, there will be no further taxation at the time of the subsequent distribution of the assets held in the trust.<\/p>\n<p>The simple partnership determines its taxable income as the sum of the individual income categories set forth in Article 6 of the TUIR.<br \/>\nThe income produced by the simple partnership is classified according to its source of production and contributes to the overall income as the sum of the income belonging to each income category net of deductible expenses, excluding income subject to withholding tax or substitute tax and exempt income. The total income determined in this manner is declared by the ordinary partnership in its own return, but the tax liability is based on the principle of imputation by transparency &#8211; i.e., directly to each partner in proportion to his share in the profits and independently of the actual receipt thereof<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign trusts, private foundations, etc recognised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign trusts are recognised pursuant to the Hague Convention, even when established and\/or domiciled abroad.<\/p>\n<p>Foreign private foundations \u2013 i.e. foundations that are regulated by the law of other States that are not Italy &#8211; are usually recognised.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign trusts follow the regulation of the Tax Agency on trust taxation (see question 25), although with disadvantages when the state of establishment is treated as a tax heaven. In this case, in fact, the trustee will have to keep accounts (according to Italian civil law rules) to distinguish whether any distribution is of &#8216;capital&#8217; or &#8216;income&#8217;. If such documentation does not allow the distinction to be made, the distribution will always be considered capital, with the application of higher taxation for the beneficiary.<\/p>\n<p>The treatment of foreign private foundation, instead, is usually defined on a case-by-case basis by the Tax Agency. In some cases, it follows the taxation as provided for foreign trusts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts, foundations, simple partnership and legal entities (such as limited liability companies) can be used for asset segregation purposes.<\/p>\n<p>However, when the conditions are met, creditors and other interested parties (such as legitimate heirs) can ask for the claw back action (\u201cazione revocatoria\u201d) to cancel the effects of the entity and the subsequent segregation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What provision can be made to hold and manage assets for minor children and grandchildren?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Italian legal system provides for several instruments aimed at preserving assets in the interest of the family: the most advantageous are the patrimonial fund and the trust. They have in common the creation of a separate patrimony but are distinguished by specific features that can be adapted to specific needs.<\/p>\n<p>The matrimonial property fund is a special type of agreement through which certain assets may be allocated to meet the family&#8217;s needs: the assets are earmarked for a specific purpose.<\/p>\n<p>Only immovable property registered movable property and securities may be included in the fund, and it may be set up by the spouses or by a third party (with the acceptance of both spouses).<\/p>\n<p>Registration, inheritance and gift taxes as well as cadastral and mortgage taxes apply to the patrimonial fund, depending on how the fund and the assets forming part of it are constituted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The best way to provide for future incapacity is by signing a power of attorney. An individual may create two types of power of attorney: general (for all activities considered ordinary), or special (only for certain activities, defined in the power of attorney act).<\/p>\n<p>For persons fearing loss of capacity, it is common to create a general power of attorney to be sure that their affairs will be managed when they no longer have the means. These powers of attorney remain valid even after the loss of capacity, until the mental incapacity is legally recognised by the judicial authority by a specific act (support administration, incapacitation or interdiction, acts governed by the Italian Civil Code).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common examples of non-profit organisations in our country are voluntary organisations, associations, care and research organisations, and public territorial bodies (i.e. state, regions, provinces and municipalities), as well as universities, foundations or bodies providing hospital care.<\/p>\n<p>As regards the legal persons disciplined by the Third Sector Code, there are the following forms: Voluntary Organisations (ODV), Non-Governmental Organisations (NGOs), Associations for Social Promotion (APS), social enterprises (including social cooperatives), mutual aid societies, philanthropic bodies and networks of associations.<\/p>\n<p>Each one has a particular process to be set-up, disciplined by the Italian Civil Code and\/or the Code of the Third Sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the jurisdiction's approach to information sharing with other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Please provide details of any beneficial ownership registers in force in your jurisdiction, including details of whether information on them is publicly available (with or without conditions) or not.<br \/>\nItaly currently is part of 24 bilateral administrative treaties on exchange of information, and 12 bilateral treaties on simultaneous tax audits, due to the application of both the CRS and the FATCA Acts, signed and ratified by Italy.<\/p>\n<p>Moreover, the Italian Tax Agency provides instructions for the implementation of the mandatory automatic exchange of information rules regarding cross-border mechanisms subject to the notification obligation.<\/p>\n<p>Legislative Decree No. 100 of 30 July 2020 implemented Directive (EU) 2018\/822 regarding the mandatory automatic exchange of information in the tax field. In particular, the Directive introduced the automatic exchange for cross-border mechanisms subject to notification requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What important legislative changes do you anticipate so far as they affect your advice to private clients?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The years 2024 and 2025 have been particularly impactful for private clients. In particular, the increase of the flat tax to \u20ac300,000 on foreign-source income for new residents was an unexpected development. Nevertheless, this regime remains advantageous for foreign individuals, who may also benefit from it even where complex structures such as trusts are involved.<br \/>\nAt present, no reforms are envisaged or reasonably foreseeable that would have a significant impact on private clients.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5973<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/123552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=123552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}