Italy: Tax ruling on withholding tax exemption for foreign investments in real estate

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The Tax Authority of Italy (Agenzia delle Entrate) has issued a tax ruling -Risoluzione n. 78/2017- on 27 June 2017. The ruling is related to certain foreign investment funds which wish to benefit from an exemption from withholding tax.

The tax ruling clarifies that to benefit from the withholding tax exemption measures, the foreign investment fund must satisfy the following conditions:

  • The foreign investment fund must satisfy the same substantial requirements and have the same investment purpose as an Italian investment fund
  • The foreign investment fund or its management company must be subject to supervision and for this purpose, a copy of the letter of authorization on establishing the fund, stating the law that requires such supervision will be deemed as sufficient.

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