Reporting fulfilments on property held abroad

The holding of property abroad implies some reporting obligations for holders of the ownership or other real rights and residing in Italy, included among fulfilments under art. 4 of Law Decree n. 167/1990 (so-called monitoraggio fiscale”, i.e. Italian taxpayers must indicate in the annual tax return possible investment or financial activities abroad, which could generate income being taxable in Italy). In the light of the changes introduced by Law Decree n. 193/2016 to the abovementioned art. 4, concerning that foreign property whose value has not changed during the fiscal year, this article analyses: (i) tax fulfilments provided for subjects residing in Italy holding foreign property, (ii) the abovementioned fulfilments concerning the reporting of property held abroad before and after the changes introduced to art. 4 by Law Decree no. 193/2016, (iii) the so-called “favor rei” principle applied in case taxpayers have not filled-in the suitable tax return model to report the holding of foreign property (RW model), as well as the effects within the voluntary disclosure bis procedure.

For further information, please contact Gabriele Labombarda and Carlotta Benedet.