Cross-border transfer of shares: The Case of Italy and France

The double taxation treaties, in the case of the sale of shares, generally set forth for the exclusive taxation of any capital gains produced in theState which the alienator is resident, whereas the Treaty between Italy and France, the protocol set forth a case of double taxation.

Therefore, the capital gain, arising from the sale of French Real Estate Company shares by an alien resident in Italy, will be subject to double taxation (French-Italy).

Instead regarding industrial company, the capital gain realized by the French company, which sold the  Italian subsidiary, should be taxable only in France. This does not happen in practice.

The taxation also in the State of the residence of the subsidiary is, however, a peculiarity of the Treaty between Italy-French and it must be looked carefully.

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