International Taxation

The international tax system presents countless types of  feedbacks and variables tax payers must take into account, therefore an appropriate case-by-case classification can hardly be framed for declaratory purposes in Italy. Underlying the compelling phenomenon of fiscal monitoring, Lexperto & Partners assists its customers, RESIDENT and NON-RESIDENT in all  matters related to international taxation; for this reason, in compliance with the principle of global income, any Italian resident with ownership of investments abroad, in all forms of real estate held in European and non-European countries, or of precious objects or art, and of movable property registered in public foreign registers, both of company shareholdings, is required to declare their detention during the tax period, in its own Italian Unico (combined) model; even if the investment is no longer held at the end of the year, the same must be indicated in the RW, which must therefore be duly completed, determining the VAT or IVIE due.

Therefore, we would like to remind you that depending on the foreign country where the property is owned, the referenced tax base will vary depending on the cadastral value or the historical cost or the market value of the property.

As a final point regarding the holding of foreign bank accounts, we remind that the regulatory change, approved on December 4, 2014, has precisely raised the threshold within which there is no declaratory obligation in the RW framework from 10,000 euros to 15,000 euros

Our professionals, once analyzed the existing bilateral agreements, will identify the correct taxation and the consequent foreign financial obligation, avoiding the double taxation phenomena and modulating the due tax credits.

Below we briefly indicate the legal requirements to be a resident in Italy:

For income tax purposes, those who for the most of the tax period, i.e. for at least 183 days (184 for leap years), are not listed in the municipal registries and do not have neither domicile (country or place where a person has his/her fixed or legal address, or permanent residence, and to which he/she intends to return if currently residing elsewhere) nor residence (habitual residence) on italian territory. If only one of these conditions is missing, the concerned taxpayers are considered residents. Non-residents who have produced income or possess assets in Italy are required to pay taxes to the Italian State, subject to exceptions provided for by any Conventions to avoid double taxation between the Italian State and the State of residence.

Nevertheless residents are considered, unless otherwise proven, Italian citizens canceled from the registers of the resident population and emigrated to states or territories which grant a privileged tax regime, identified by the Decree of the Minister of Finance of May 4, 1999. Citizens who have moved their residence to one of the countries indicated in this list, if they are actually resident there, must be ready to provide proof of the real transfer abroad, and then prove that they do not have habitual residence in Italy or the complex of reports concerning business and interests (extended, as well as economic, family, social and moral aspects).

Main services

– Determination of the requested requirements for residence
– Registration in the Register of Italians living abroad (AIRE)
–  Assistance in the tax declaratory obligations for RESIDENTS and NON RESIDENTS
– Professional services for foreign companies with permanent establishment in Italy
– Study of tax transparency among WHITE LIST COUNTRIES and fulfillment of declaratory obligations for transactions with BLACK LIST COUNTRIES
– Analysis of matters regarding tax inversion