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Bloomberg
2 days ago
- Business
- Bloomberg
Elkanns Agree to Pay €175 Million in Italy Tax Case
The Agnelli family's John Elkann and his siblings, Lapo and Ginevra, agreed to pay about €175 million ($204 million) to Italy's revenue authority as they seek to settle a probe over alleged tax evasion, according to people familiar with the matter. A spokesperson for the siblings confirmed Sunday that they've come to an agreement with Italy's Revenue Agency, as reported in the local press. The representative didn't confirm the total amount paid. The figure was disclosed by people who spoke on condition of anonymity, because they're not authorized to speak publicly.
Bloomberg
3 days ago
- Business
- Bloomberg
Elkann Siblings Agree to Pay €175 Million to End Italy Tax Case
By and Daniele Lepido Save The Agnelli clan's John Elkann and his siblings, Lapo and Ginerva, agreed to pay about €175 million ($204 million) to Italy's revenue authority as they seek to settle a probe over alleged tax evasion, according to people familiar with the matter. A spokesperson for the siblings confirmed Sunday that they've come to an agreement with Italy's Revenue Agency, as reported in the local press. The representative didn't confirm the total amount paid. The figure was disclosed by people who spoke on condition of anonymity, because they're not authorized to speak publicly.
Local Italy
27-06-2025
- Business
- Local Italy
What you can and cannot do as a non-resident in Italy
Foreigners in Italy are considered Italian residents for tax purposes if they spend at least 183 days out of the year in the country. Anyone not in this position is considered a visitor – and if you just enjoy coming to Italy on short visits, you'll probably want to keep things as they are. But if you own property in Italy and spend a significant amount of time here, you may be wondering whether it's worth taking the plunge and becoming a resident (for non-EU nationals, this will involve making a successful visa application). To help with your decision, here's a breakdown of the major things that you can and can't do as a non-resident foreigner in Italy. What can a non-resident in Italy do? Get a codice fiscale A codice fiscale is a 16-character personal identification code similar to a Social Security Number in the US or National Insurance Number in the UK. It's essential not only for completing bureaucratic tasks like paying taxes and registering for public healthcare, but also for things like buying and selling property in Italy or claiming an inheritance. Fortunately, it's relatively easy to get hold of, and shouldn't cost you anything. As a non-resident, you can apply through your nearest Italian embassy or consulate (some allow you to apply online). Alternatively, you can delegate an Italian resident to apply on your behalf by going in person to a Revenue Agency office. Buy property Non-EU foreign citizens are allowed to purchase property in Italy provided their country offers the same rights to Italian citizens; this applies regardless of residency status. This system is based on reciprocity, with Italy mirroring restrictions imposed by other countries. Canadians, for example, may run into more issues than people of other nationalities when buying property in Italy due to Canada's 'Prohibition on the Purchase of Residential Property by Non-Canadians Act'. Citizens of EU or European Economic Area countries have the same rights as Italian citizens when it comes to buying Italian property, regardless of their residency status. Bear in mind that owning property in Italy does not give you the right to stay in the country long term. Rent property Non-EU citizens from countries that come under the Schengen Zone's '90 day rule' can theoretically rent property in Italy for up to 90 days at a time. In practice, however, you'll struggle to persuade a landlord to sign a rental agreement if you can't produce evidence of your right to stay in the country beyond this period, such as a work permit or student visa. EU nationals can enter into the same rental contracts as Italian citizens without specific restrictions or the need to be an Italian resident, though landlords are likely to want to see proof of income. Apartment buildings in Prati neighbourhood in Rome. Securing a rental contract may be more difficult if you are not yet an Italian resident. Photo by Marie-Laure MESSANA / AFP Open a bank account It's possible to open a bank account in Italy as a non-resident, though you'll face a number of restrictions that residents don't have to deal with. Any foreigner aged 18 or over can open a bank account in Italy, but the full range of account types, from regular bank accounts (conti correnti) to savings and deposit accounts, is generally only available to legal residents. Non-Italian residents can only open international accounts (known as conti internazionali or conti correnti per residenti stranieri), which often come with a number of limitations regarding the banking services and operations that holders have access to. Take out a mortgage Again, there are no rules against non-residents taking out a mortgage in Italy, though getting a mortgage from an Italian bank is likely to be a complicated affair. Italian banks do not advertise non-resident mortgage products: you'll almost certainly require the services of a specialist mortgage broker in order to access this information, as well as to apply. As non-EU nationals without permanent residency are considered a greater risk by lenders, there are also more paperwork requirements and checks in place throughout the process than for residents. Pay taxes For those who own property or generate income in Italy, this is a legal requirement, even if you're not an Italian tax resident. Any money generated in Italy, such as rental income from a holiday home, must be reported to Italy's Revenue Agency (Agenzia delle Entrate). Even if you don't make any money in Italy, as a property-owning non-resident you'll still have to pay the IMU property tax (Imposta Municipale Unica), which is owed by all owners of second homes in Italy, and the TARI waste disposal tax. What can't a non-resident do? Stay for more than 90 days at a time as a non-EU citizen Non-EU citizens without Italian residency can't stay in the country for longer than 90 days at a time (this could be less, depending on your nationality and visitor visa conditions). If you come to Italy on a long-term visa, you are required to register as a resident. EU citizens can stay as long as they want, but are required to register as a resident after three months. Have the right to work if you're from outside the EU Being a non-resident and owning Italian property doesn't give you any working rights in Italy if you're from a non-EU country. According to Italian law firm Mazzeschi Legal Counsels, people in this position can legally perform a very small amount of remote work during a short stay in Italy – but it would have to be a 'marginal' amount accounting for 'less than 5% of the worker's regular working time and/or less than 5% of his/her overall remuneration.' If you're from the EU or the EEA, you have freedom of movement and aren't subject to these rules. You can also apply for and be offered a job in Italy, but you'll then after three months. Register with the national health service As a non-resident foreigner in Italy, you won't be able to register with the country's national health service (Servizio Sanitario Nazionale, or SSN). As a non-EU visitor, you'll have access to emergency or urgent healthcare treatment in Italy, though any service you use will come at a cost. If you're from an EU country you can apply for the European Health Insurance Card (EHIC), which covers the costs of medically necessary, state-provided healthcare during a temporary stay in Italy. If you're from the UK, you can apply for a UK Global Health Insurance Card (GHIC), which also allows you emergency healthcare here. In either case, this doesn't replace a full insurance policy, and travellers with either the EHIC or GHIC are advised to take out comprehensive travel health insurance as well. Buy a car If you don't have residency in Italy – even if you own property in Italy or have business interests in the country – you are not legally allowed to buy a car. According to the Italian highway code, you need to have registered your residency with an Italian municipality to be able to buy a new or used vehicle in Italy. While you might find a friendly neighbour willing to sell you their old motor regardless, you would need to register the change of ownership with the Motor Vehicles Office (Ufficio Motorizzazione Civile) and the Public Vehicle Registry (Pubblico Registro Automobilistico or PRA), which requires a residence permit or, for EU citizens, a residency certificate. Vote This one may seem obvious, but non-resident foreigners have no voting rights in Italy. By contrast, EU citizens who are resident in Italy can vote in both local and European parliamentary elections (though not national or regional ones, which are reserved for Italian citizens).
Local Italy
13-05-2025
- Business
- Local Italy
How does Italy's 'impatriate' tax rule work in 2025?
If you're a person of working age who's considering moving to Italy, you may want to look into its lavoratori impatriati or 'inbound workers' tax regime. The scheme, which was introduced in 2015, provides significant tax breaks for highly-qualified workers who relocate to Italy after being out of the country for at least three consecutive tax years. It was watered down in 2024 but still offers some fairly substantial savings for those who qualify under the new rules. The regime primarily targets Italians who've gone abroad for work, which is why it's alternatively known as the Regime per il Rientro dei Cervelli or 'Reverse Brain Drain' scheme. But there's nothing stopping foreign nationals with the right to work in Italy from taking advantage of it. According to Italy's Revenue Agency, the scheme currently offers the following benefits: Bear in mind that these tax incentives only apply to income derived from employment (including self-employment), and not other sources, such as rent or capital gains. To qualify under the current rules, you should not have been resident in Italy for at least the previous three tax years, and must commit to moving your tax residency to Italy for at least four years. If you move away from Italy before the four years are up, you'll be required to repay the savings with interest. The length of time beneficiaries must have lived outside of Italy increases to six tax years for those continuing to work for the same group of companies after moving to Italy, and seven if the worker previously worked for that same group in Italy. Italian citizens are considered to have been resident abroad if they were registered with AIRE (Anagrafe Italiani Residenti all'Estero) or were resident in a country with which Italy has a double taxation agreement. While there were previously no restrictions around a beneficiary's level of education or qualifications, as of 2024, they must meet the definition of 'highly qualified' under Italian law. That means having a three-year degree that is recognised by Italy, and a professional qualification that falls within Level 1, 2 or 3 of the Italian Institute of Statistics' official jobs classification. To claim the benefit, employees should make a written request to their employer showing that they meet the requirements; the discounted tax rate will then be applied to monthly salary instalments going forward. If you file the request after the tax year has already started, you can ask Italy's revenue agency to reimburse you for the months for which the discount was not applied when you submit your annual tax return. Self-employed people can claim the benefit when they file their tax return. If you were planning a move to Italy and qualify under the new rules, taking advantage of the regime seems like a no-brainer. As things stand, however, the benefits may not be enough to actively incentivise people to relocate; this is particularly true for self-employed workers, whose incomes are subject to steep social security payments before tax. It's also important to bear in mind that the regime is only available to people who already have the right to live and work in Italy - that is, EU citizens or people with visas that allow the holder to work.
Local Italy
07-05-2025
- Business
- Local Italy
The bumper Italian tax guide for 2025
2025 tax deadlines Late spring is generally the busiest time of year for Italian taxpayers as that's when the window to file the yearly income tax declaration (or dichiarazione dei redditi) opens. Barring some rare filing exemptions, anyone who's considered an Italian resident for tax purposes (also known as 'fiscal resident') is required to file income taxes in Italy. Italian law defines a tax resident as anyone who lives in Italy for at least 183 days per calendar year (184 days in leap years). That includes anyone formally registered as a resident of Italy or simply residing here unofficially for more than half the year. But even if you're not an Italian tax resident, you may still have to file and pay Italian taxes on any income generated in Italy. Depending on your personal tax situation and income source, you'll have to file one of two forms. You can find the official deadlines for this year HERE. late filing and failure to file. Besides income tax deadlines, there are two other key dates you need to be mindful of if you own property in Italy. The first instalment of Italy's tax on second homes IMU (Imposta Municipale Unica) is due by June 16th, whereas the second instalment is due by December 16th. You can find these and other key tax dates in our calendar. First-timers If this is your first time declaring tax in Italy, your first task will be to get a codice fiscale (a personal identification number similar to an American Social Security Number or a British National Insurance Number) if you don't already have one. Find a guide to doing that HERE. The 2025 income tax declaration covers the 2024 tax year, which runs from January 1st, 2024 to December 31st, 2024. This means that if you moved to Italy after January 1st, 2025, you won't have to complete the declaration until next year (unless, of course, you generated income in Italy in 2024). On the other hand, IMU payments are always relative to the year when you make the payments (this is often referred to as anno corrente in Italian) – in this case 2025. This is also where taxpayers can find a pre-compiled version of tax return form 730 (or modulo 730) – the income tax declaration form generally used by employees and retirees in Italy. Though most tax declarations can be filed online, there are provisions for people who don't have internet access or are not comfortable completing tasks online. In this case, you can visit or call your local branch of Italy's Revenue Agency and request paper versions of the forms, which you can then submit at the same office. Italy's tax assistance centres (Centri di Assistenza Fiscale, CAF) can also provide tax declaration forms in paper format, as well as instructions and guidance on how to fill them out. partita Iva holders, but not those on the flat tax rate) and pensioners. The Italian government cut the number of available tax brackets from four to three in December 2023. This means that your 2024 taxable income will be taxed based on the three-bracket system below: Up to €28,000 of taxable income: 23 percent Up to €50,000: 35 percent Over €50,000: 43 percent Like income taxes in many other Western countries, Italy's Irpef is a progressive tax, meaning that you only pay the higher rate on the portion of your income that's over the relevant threshold (for instance, 43 percent on the portion of income exceeding 50,000 euros). Foreign income It's not unusual for foreigners in Italy to have some or all of their income coming from outside of Italy – whether that is a pension paid from a foreign country, remote working for a non-Italian company or rental income from a property abroad. If you're an Italian tax resident, you'll be required to declare your global income, meaning income generated not just in Italy but anywhere in the world. It's important to note, however, that declaring your foreign income does not necessarily mean you'll have to pay taxes 'twice' on it. Italy has dual taxation agreements with most countries, including the UK and the US. These agreements mean that if you've already paid tax on income generated in another country, you won't be taxed on it again – though you'll still have to tell the Italian taxman about it. A full list of double taxation agreements can be found on the Italian Treasury's website (currently available only in Italian). Given the complexity of the rules and provisions included in most reciprocal agreements, Italian tax residents with foreign income are strongly advised to seek the help of a qualified tax expert (commercialista) when filing their Italian decorations. Foreign assets and bank accounts Italian tax residents who hold financial assets abroad – this includes real estate, financial investments, unit trusts, and even foreign bank accounts – are required to declare them by completing the foreign assets section of their yearly tax return form (section W of form 730 and section RW of form Redditi PF). Depending on the types of assets you own abroad, you may have to pay Italy's tax on foreign real estate (IVIE) and/or a tax on foreign financial activities (IVAFE). It's worth noting that retirees who've opted for Italy's special seven-percent flat tax rate are exempt from the requirement to declare (and pay) IVIE and/or IVAFE on foreign assets. You can find further info about declaring foreign bank accounts HERE. Tax breaks Italy has a number of tax breaks to help taxpayers, especially those with low incomes, reduce their tax bill each year. These are generally divided between tax deductions (deduzioni fiscali), which lower your taxable income, and tax reductions (detrazioni fiscali), which lower your final tax bill. Tax reductions for 2025 apply to anything from rent to public transport to education expenses and include a 19-percent tax break on medical expenses applicable to amounts exceeding €129.11. You can find a quick overview (in Italian) of tax deductions and reductions here. It's also worth noting that Italy offers a number of favourable multi-year tax regimes for residents – these include the seven-percent flat rate for foreign pensioners and the so-called 'impatriate' tax scheme. Taxes for second-home owners If you live outside of Italy but own property in the country that you use as a second home or holiday home, there are a few things to be aware of, with the first being whether or not you are an Italian tax resident. If you use your Italian property just for holidays then you probably won't be. But if you tend to spend a significant amount of time at your Italian property, you should keep in mind that Italy's tax office will consider you a tax resident if, for at least 183 days a year, you are registered with Italy's National Registry of the Resident Population (Anagrafe) or have your place of 'residence or habitual residence' in Italy. The other thing to consider is whether you have any Italian income through renting your property, including on Airbnb. If you do, you will need to declare this income in Italy. Finally, if you're not an Italian tax resident and don't generate any income in Italy, you'll still have to pay the IMU property tax (Imposta Municipale Unica), which is owed by all owners of second homes in Italy, and the TARI waste disposal tax. You can find more details about Italy's IMU tax and this year's deadlines HERE. Getting help If you're completely daunted by the Italian tax system, don't panic: help is available. If you have a fairly simple tax situation (e.g. you have a single employer and no other sources of income) and speak some Italian, you may be able to get the help you need at one of Italy's tax assistance centres (Centri di Assistenza Fiscale, or CAF). If, however, you are self-employed, are starting or operating a business, earn income in multiple countries, or simply find the whole process too difficult, you may need the help of a qualified tax expert (or commercialista in Italian). Please note: all commercialisti in Italy must be registered with national association CNCDEC (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili). The association's website allows you to look for registered professionals in your area by entering your postal code (CAP). As with most things in Italy however, word of mouth is key, so make sure to ask friends and family for recommendations if possible. Alternatively, online forums and message boards for foreign nationals in Italy often share the names of professionals who have experience with assisting international residents. Please note that The Local is unable to advise on individual cases.
