Foreign citizens and companies can establish various types of structures in Italy, including trusts. Even if no specific legislation provides for the establishment of trusts, both local and foreign trusts are recognized in Italy, as this country was of the first signatory members of The Hague Convention which covers the creation of trusts. Furthermore, the tax authorities have enabled a law which provides for the taxation of trusts.
Under the international legislation, trusts are independent entities which can be used for various purposes, one of the most common one being estate planning. Our company formation agents in Italy can offer more information on the recognition of trusts in this country.
The main element of the trust is the document through which the entity is created. Also known as a deed, the document which establishes the creation of a trust must contain information about the person or company setting up the trust, the person in charge with the administration of the trust (also known as the trustee), and the beneficiary or beneficiaries. It should be noted that the estate can refer to various assets including money, real estate, titles of ownership or shares in a company.
Our Italian company formation advisors can offer more information on the legal requirements to set up a trust in this country.
As mentioned above, under the Italian legislation trusts can be set up by nationals or local citizens, case in which they are called resident trusts, and trusts which are registered by foreign citizens or companies which are not deemed taxable in Italy, case in which they are known as non-resident trusts.
There is another way in which trusts can be categorized in Italy:
Transparent trusts provide information about the beneficiaries of the assets administered by the trustees, which opaque trusts do not state clearly who the beneficiaries are.
For taxation reasons, Italian trusts are required to register with the authorities, obtain a tax and VAT number.
For assistance in setting up a trust in this country, please feel free to contact our company incorporation consultants in Italy.