Are you clear about your tax position in Italy?


  Are you clear about your tax position in Italy?

In February I wrote about the Voluntary Disclosure program in Italy and now that program is drawing to a close.

I feel however that many people are only just realising the full impact of    what’s expected of them   by Italian tax authorities. Many enquiries have arrived ‘kind-of late’ in the program’s timeframe.

The program was scheduled to end 30 September however some key legal amendments affecting the framework of the program were only completed in August/September, and given the complaints of  overburdened tax and audit firms being so busy filing documentation, the program was extended to end November.

Initial government estimates suggest more than 10,000 applications have been filed and taxes plus penalties raised of approximately €3.8 billion. Although this is far below original hopes, the success of the Voluntary Disclosure program seems to be assured.

It’s important to note for non-disclosure of foreign assets just related to the 2014 tax year,  you can decide to utilise the voluntary settlement approach (so called “ravvedimento operoso,”) which allows you to file the RW Form for foreign assets 90 days later that the 2014 tax return deadline and just pay a penalty amounting to €258.

If you haven’t availed yourself of the Voluntary Disclosure program related to past years, then the system reverts to pre-Voluntary Disclosure, and you should chat with your commercialista about how to present your situation to authorities regarding any outstanding taxes and penalties related to previous years of non-disclosure.

What is a tax-effective structure for your current and future investments or assets?

Anything that allows you legally to reduce the total amount of taxes you would otherwise pay by declaring in your own name in your annual tax lodgement all your income and local and foreign assets and investments, is potentially a tax-effective structure. Italy is quite strict these days on foreign-held assets, especially where it may appear they are constructed to solely reduce tax. However they do approve and regulate authentic investment funds managed in a collective way, especially by EU-compliant money managers, who report to Italy about their operations and their Italian business.

If you would like to know more, and start to think about setting up your finances and investments to be more tax-effective, but at the same time operate within the law and aim to have piece of mind in the process, then contact me to discuss it over a no-obligation chat together.

For further information contact

Daniel assists clients to create and implement personal financial plans that are long-term, flexible and consider all areas of financial life.  Specialist advice is provided to expatriates and clients moving between various countries or retiring abroad. 


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All thoughts are my own. The information contained here is not personal financial advice tailored to individual needs.