Italy
The Italian tax and legal system is different from that in the UK and many other countries and so people who have moved to Italy or are planning to do so can find it all rather complex. They also tend to just accept the system as it is and do not realise that they may be able to take advantage of Italian tax compliant opportunities to protect their assets from taxation in Italy.
As with any wealth and estate planning, the starting point is to understand what the rules are and then establish if there are ways to minimise the personal impact of them and if you can use the rules to your benefit.
ITALIAN TAXES
From a tax perspective, the starting point is whether you are Italian resident or not. If you are an Italian tax resident or you will become one then, in common with most other countries, you will be liable to Italian income tax and capital gains tax on your worldwide income and gains. Your worldwide assets will be subject to Italian inheritance tax if you are resident in Italy at the date of death.
You may still be liable to UK inheritance tax if you are a UK domicile. If both local and UK inheritances taxes are payable on the same assets, you will be able to credit the overseas taxes against the UK tax.
The use of trusts can be an effective means of reducing your tax liabilities in Italy.
UK RESIDENTS WITH ASSETS IN ITALY
If you are not an Italian tax resident or have chosen not to become a tax resident of Italy you may still be liable to income tax and capital gains tax in Italy on your Italian assets. The same income or gains may also be taxable in the UK, with a credit for the taxes paid in Italy.
You may also be liable to Italian inheritance tax on your Italian assets. This could result in you paying inheritance tax in Italy on the first death.
For more information on Italian taxes CLICK HERE to download our free tax guide to Italy.
Italian succession law decrees how your assets should devolve upon your death, with a certain portion of the estate passing automatically to the spouse and the children. The laws stipulate the reserved portions depending on the number of children. However, these rules may not apply to you if you are not an Italian national, provided you have a Will valid under Italian law.
WHY CHOOSE BLEVINS FRANKS?
- We are able to provide initial and ongoing advice to help you reduce tax on your wealth and help you structure your assets in the most efficient manner, whether you are at the planning stages of moving to Italy, or you are already living in Italy, or if you are considering a return to the UK.
- Blevins Franks Financial Management Limited is authorised in the UK by the Financial Services Authority (FSA) for the conduct of investment and pension business. We are authorised to give advice in Italy through the EU Insurance Mediation Directive (IMD).
- We have up to date knowledge of the ever changing Italian tax regulations, as well as the opportunities available to reduce your tax liabilities.
- We offer Trustee services through Blevins Franks Trustees Limited, which is based at our Head Office in Malta.
- We take a holistic approach to protecting your wealth as we are able to give you integrated advice covering your Italian assets, your UK assets and any assets you own elsewhere.
- We provide a personal, ongoing, customer focused service and do not treat our clients as account numbers.
- So far we have been providing trusted services for over 35 years. We are here to guide you and your wealth today; in the future as your circumstances and objectives change, and eventually to help your spouse/partner and family when they inherit your assets.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.
