TERRITORIALITY IN ITALY OF DONATION ACTS CARRIED OUT BY A SUBJECT RESIDING IN SWITZERLAND

The Italian Revenue Agency has confirmed, in line with the prevailing jurisprudence of the Court of Cassation, that to determine whether a donation act with a bank transfer by a donor residing abroad should be subject to taxation in Italy, it is necessary to examine whether the donated asset (money) can be considered as an asset existing within the territory of the State.

In the case under consideration, the money subject to donation by a citizen residing in Switzerland, through a bank transfer, although intended for a beneficiary residing in Italy, is not presumed to be an asset existing within the territory of the State. This is because the donor was residing abroad, and in any case, before the disposal act, the money was deposited in a bank account with a Swiss institution. Consequently, lacking the prerequisite of territoriality (art. 2 Legislative Decree 346/1990), the related donation act does not have relevance for the purposes of applying the gift tax in Italy.

Our staff is available to provide you with further information on this matter.