January 14 2019

Taxation of individuals registered in Campione d’Italia – clarifications issued

Source: IBFD Tax Research Platform News

On 11 January 2019, the Italian Tax Authorities (ITA) issued Ruling Answer No. 4/2019 providing clarifications on the favourable tax regime applicable to individuals registered in Campione d'Italia.

Under article 188-bis of Presidential Decree No. 917 of 22 December 1986, qualifying individuals registered with the municipality of Campione d'Italia are subject to Italian income tax, but the computation of the part of their income that is earned in Swiss francs (for a total amount not exceeding CHF 200,000) is based on a favourable exchange rate agreed upon periodically by the competent authorities. In addition, pension and employment income earned in euros is included in taxable income only for the part exceeding EUR 6,700.

The ITA clarified that, in order to benefit from this favourable tax regime, an individual must:

  • be registered in the civil registry of the municipality of Campione d'Italia; or
  • be registered in the civil registry of non-resident Italians (Anagrafe degli Italiani Residenti all'Estero, AIRE) of the municipality of Campione d'Italia and be a resident of Canton of Ticino (Switzerland), provided that he previously was a resident of Campione d'Italia and currently has his tax domicile there.