How to Profit from the Italian Revenue Revaluation Bonanza!

Are you resident in Italy? Do you pay tax in Italy? Do you hold shares in a limited company, or own building land? Then read on...

It’s back! If you pay tax in Italy then you can take advantage of a very interesting offer from the Italian Revenue to revalue certain assets – basically shares and land.

“Rebasing” the value in this way means that you can effectively reduce, if not eliminate, the capital gain on any future disposal of these assets. This is very useful if you are thinking of realizing your investments in the not-too-distant future.

The assets which can be revalued in this way are building land and shares held in private (not quoted) limited companies. The huge advantage is that instead of paying Irpef at the usual rates on any capital gain, you pay only 2% or 4% on the revalued figure. If you later dispose of the assets, the initial value is replaced by the revalued figure. This drastically reduces or even eliminates any capital gain.

What to Do

1. 1. Check your eligibility. Your Italian accountant will help you here.
2. 2. Have the land or shares professionally valued.
3. 3. Have the valuation report sworn.
4. 4. Complete everything before 30th June 2012.

The tax you then pay is 2% or 4% on the sworn valuation figure, depending on the particular case (generally whether the shareholding is a majority one or not).

Overseas Companies

This opportunity is available to all those who pay tax in Italy and are an Italy resident. But take note of this: the shares which can be revalued can also be held in overseas companies. That may be of particular interest if you are a non-Italian living in Italy and hold shareholdings in, for example, UK or US companies. Over the past few years we’ve seen the Italian Revenue come forward with this offer for a limited period only. Each time the season closes we worry that it won’t return again and that some people may be missing out. Don’t let it be you. If you’re interested, please do get in touch. The revaluation bonanza can’t last forever!

To find out if this opportunity is suitable for you, click here. 

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