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Italy

ITALY

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New Developments
  • Decisions in 2010-2011 confirmed that the transfer of assets into trust is taxed with a fixed rate of Registration Tax.
  • Circular No. 61 of 27 December 2010, Central Tax Office, specifies that the Italian system does not recognise trusts where the trustee's powers are controlled or conditioned by the settlor or the settlor benefits from trust assets or trust income or has a right to the assignment of trust assets or has a right to change beneficiaries or to revoke the trust. Further Circular No. 61 specifies that trust income received by an Italian tax resident from a trust resident abroad is taxed as capital income (20 per cent).
  • The tax authorities have indicated in Atto di Indirizzo, 17 May 2011 that a trust can enjoy the fiscal benefits granted to charitable organisations if it satisfies the conditions to be considered as a charitable organisation.
  • The Senate has approved the bill before the Camera dei Deputati for a law delegating the government to issue legislative decree with provisions to govern a 'contratto di fiducia', that is a contract that would introduce in the Italian system a structure equivalent to trust.

1. Introduction

Italy, a democratic republic as of 1946, is a charter member of the North Atlantic Treaty Organisation (NATO) and the European Economic Community (EEC). The Italian legal system is a civil law system.

The currency of Italy is the euro (EUR).

Editorial Board
Antonia Marsaglia TEP
Studio Legale Marsaglia, Milan, Italy

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