How wealth tax works in Italy
Italy does not levy a general annual net wealth tax on an individual’s worldwide balance sheet. Instead, residents report foreign real estate and foreign financial investments and pay IVIE and IVAFE where applicable.
IVIE is 1.06% on foreign real estate for Italian tax residents, with a EUR 200 minimum. IVAFE is 0.2% on most foreign financial assets and 0.4% for assets in privileged-tax jurisdictions, subject to the current exclusions.
{ "Italy also has practical asset taxes and charges": "bank statements can attract a fixed stamp duty, and Italian-held financial products are usually subject to a 0.2% stamp tax withheld by the bank." }
Tax rates at a glance
- Net wealth tax
- 0%None
- IVIE
- 1.06%
- IVAFE
- 0.2%
- IVAFE on privileged regimes
- 0.4%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHigh earnersFamily officesExpatsRemote founders
Watch out for
- No general wealth tax does not mean no reporting. Italian residents still need to disclose foreign assets and pay IVIE or IVAFE where the rules apply.
- The lump sum regime for new residents can replace IVIE and IVAFE on foreign assets if the taxpayer validly opts in.
- Bank-account stamp duty is separate from wealth tax and can still apply even if the average balance is modest.
- If you are tax resident elsewhere, your home country may still tax the same assets even when Italy does not.
Frequently asked questions
Does Italy have a wealth tax?
Italy does not have a general net wealth tax, but residents can owe IVIE on foreign real estate and IVAFE on foreign financial assets.
Are foreign assets taxed in Italy?
Yes, if you are an Italian tax resident. Foreign real estate and foreign financial investments can be in scope through IVIE and IVAFE.
Is there an annual filing?
Yes. Foreign asset reporting is part of the Italian tax return, and the relevant wealth taxes are settled through that filing.