Entrepreneurs and their families, as well as clients, increasingly turn to Private Banking or Wealth Planning services to diversify their investments in Italy and abroad. The tax variable plays an important part in the success of these investments. Investors and Private Banking and Wealth Planning operators may choose to seek tax advice from a tax law firm. Tax advisers therefore become key points of contact of investment managers in discussing the tax consequences of, for example, foreign financial investments, M&A transactions, inheritance planning, the taking out of life insurance policies and when purchasing property abroad.
Tax legislation and taxation procedures applied in Italy and abroad are in constant evolution, and involve delicate aspects affecting assets and the individual. Alongside Private Banking services dedicated to HNWIs, Wealth Planning services are now frequently requested by small and medium sized businesses and families, giving rise to a new investment management model focused on the objectives that clients consider important in their lives and the work environment they are confronted with on a daily basis. Foreign investments not only have consequences in terms of personal income taxes (IRPEF), i.e. substitute taxes on financial returns (12.50% and 26%), but also in terms of property taxes on financial assets and real estate (IVAFE and IVIE) and, above all, in terms of declaratory requirements related to tax returns (Modello Unico and Quadro RW).
The weave between Italian domestic regulations, foreign regulations, double taxation treaties and EU legislation, renders the preliminary examination and the consequences deriving from foreign investments and the related tax declaration thereof particularly complex. Furthermore, the possibility of using taxes paid abroad is greatly limited by procedural, qualitative and quantitative constraints found in Italian legislation. AeA Tax Law assists investors in all the necessary steps to evaluate, and avoid where possible, the application of international double taxation. Such issues are particularly relevant to foreign real estate investment and shareholdings.
Among the formal requirements of IRPEF, the completion of Quadro RW for tax monitoring purposes is crucial in order to correctly establish the applicable tax rate, so early assessment by a tax law firm specializing in individual taxation is advisable. AeA Tax Law offers a tax advisory service in Milan, based on years of experience of financial investments in Italy and abroad, and assists clients in planning their investments in the light of their personal and financial motivations.