Trusts and Fiduciary Companies in Rome
Establishment and administration of trusts, foundations and fiduciary structures.
In Brief
Establishment and management of trusts in Rome. Asset ring-fencing, asset protection, fiduciary mandates and succession planning. Marzo Associati.
Trusts and Asset Ring-Fencing Structures
Establishment of Trusts:
Analysis of requirements and drafting of trust deeds for domestic and foreign trusts.
Trust Taxation:
Advice on recent legislation (e.g. "opaque" vs "transparent" trusts) and the taxation of distributions to beneficiaries.
Mandati Fiduciari:
Assistance with managing shareholdings and assets through fiduciary companies to ensure confidentiality and professional management.
Compliance:
Review of tax reporting and monitoring obligations for settlors and beneficiaries.
The Firm has in-depth expertise in trust law, an essential tool for asset protection and the management of specific interests (e.g. "Dopo di noi", charitable purposes and family asset management).
Trust e strutture fiduciarie a Roma: segregazione patrimoniale su misura
The trust is the most flexible and powerful estate planning tool available under Italian law. Unlike a family asset fund (fondo patrimoniale) — which is limited to meeting family needs and exposed to creditors' claims in many circumstances — a trust allows genuine asset segregation: the assets transferred cease to belong to the settlor and cannot be pursued by the settlor's creditors (subject to actions to set aside transfers in the cases provided for by law).
The 2024 Tax Reform: What Has Changed
D.Lgs. 139/2024 has redefined trust taxation in Italy by introducing art. 4-bis del Testo Unico Successioni e Donazioni: inheritance and gift tax applies when assets are transferred to beneficiaries (taxation "on exit"), superseding the view that tax is immediately payable upon segregation of the assets. The settlor — or the trustee in trusts established by will — may alternatively opt to pay the tax in advance when the assets are transferred into the trust, with final effect and no right to a refund: this choice allows asset values, rates and tax-free allowances to be fixed. The rates are those applicable to gifts: 4% (spouse/children, tax-free allowance of €1,000,000), 6% (siblings, tax-free allowance of €100,000), 6% for other relatives up to the fourth degree, and 8% for unrelated persons. The Firm assesses with the client which of the two methods is consistent with the objectives of the structure.
"Dopo di Noi" Trusts: An Area of Specialisation
Legge 112/2016 provides for a preferential tax regime for trusts established for people with severe disabilities (art. 3 L. 104/1992). Transfers into these trusts are exempt from inheritance and gift tax, and the settlor's annual contributions are deductible up to €750 per year. The Firm Marzo Associati has developed specific experience in this area, assisting families in structuring solutions that ensure continuity of care after the parents' death.
The 1985 Hague Convention and the Recognition of Trusts in Italy
The legal basis for trusts in Italy is the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition, ratified by Italy through L. 364/1989. L'art. 2 of the Convention defines a trust as the legal relationship created by a person (the settlor) by an inter vivos instrument or on death, whereby assets are placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose. Theart. 11 sets out the effects of recognition: the trust assets constitute a massa distinta and do not form part of the trustee's personal estate; the assets cannot be pursued by the trustee's personal creditors; the trustee has standing to bring legal proceedings in that capacity. The Italian legal system has progressively consolidated the recognition of trusts, including domestic trusts, through case law extending the Convention's principles to trusts whose elements have no connection with foreign jurisdictions. The choice of governing law (English, Jersey, Swiss or San Marino law) determines the operational features of the trust and must take account of the settlor's objectives and the beneficiaries' circumstances.
Trust Taxation After D.Lgs. 139/2024: The New Regime
An D.Lgs. 139/2024, implementing the tax reform authorised by L. 111/2023, has codified the point at which tax becomes payable for trusts in the new art. 4-bis TUS (D.Lgs. 346/1990): l'imposta sulle successioni e donazioni is payable upon the transfer of assets to beneficiaries, rather than upon segregation of the assets. However, the legislature has provided an option to pay the tax in advance: the settlor (or the trustee, for trusts established by will) may pay the tax when the assets are transferred into the trust or when succession opens, based on the value of the assets and the rates and tax-free allowances in force at that time. The option is irrevocable in its effects and the tax paid is non-refundable, but it provides certainty as to the structure's tax burden. The rates and tax-free allowances are the ordinary ones applicable to gifts (4%, 6% or 8% depending on the relationship between settlor and beneficiary, with tax-free allowances of €1,000,000 for children and spouses and €100,000 for siblings). For trusts for people with severe disabilities ex L. 112/2016 ("Dopo di Noi"), the applicable regime remains that of esenzione dall'imposta sulle successioni e donazioni, with the settlor's annual contributions deductible for personal income tax (IRPEF) purposes up to €750 per year. It is advisable to check that all formal and substantive requirements for access to the relief are met, as the Italian Revenue Agency (Agenzia delle Entrate) has interpreted them restrictively in its circulars.
How to Establish a Trust in Practice: The Process
Establishing a trust involves a multi-stage process. First, planning advice is provided to define the objectives (asset protection, intergenerational succession, beneficiaries), choose the governing law (Italian law or that of a foreign jurisdiction such as Jersey, Guernsey or the Cayman Islands), and identify a professional trustee. This is followed by drafting the trust deed, which must be meticulously prepared to avoid future challenges by the Italian Revenue Agency (Agenzia delle Entrate) or creditors. The deeds transferring assets to the trustee are then handled (together with the associated tax obligations: registration tax, mortgage tax, cadastral tax or gift tax), and finally ongoing compliance is organised (trust tax returns, the RW section of the tax return, communications to beneficiaries). The Firm supports the client at every stage, from initial advice to day-to-day administration.
The Firm in the Salario District, Rome
Based at Via Ancona 20, Roma, the Firm is easily accessible from Parioli, Trieste and the capital's most exclusive residential areas. We assist business-owning families, professionals with substantial assets and families requiring structured asset protection throughout Italy.
Domande Frequenti — Trusts & Fiduciary Companies
What Is the Difference Between an Opaque and a Transparent Trust for Tax Purposes?
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A trust is 'opaque' when the settlor cannot revoke the trust or benefit from the income generated, and the trustee acts at their discretion. In this case, the trust is liable to corporate income tax (IRES) and pays tax on its income in its own right. A trust is 'transparent' when the beneficiaries are identified and have an established entitlement to the income: this is taxed directly in the hands of the beneficiaries on a transparent basis. The choice between the two structures has significant tax consequences and depends on the settlor's objectives. The Firm assesses the optimal structure on a case-by-case basis.
How Does a Fiduciary Mandate Work and What Benefits Does It Offer?
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A fiduciary mandate is a contract under which the principal (the actual owner) entrusts a fiduciary company with holding legal title to assets (typically shareholdings or current accounts) in the company's own name but on the principal's behalf. The main benefit is confidentiality: the principal does not appear as the owner in public registers. For tax purposes, the income remains attributable to the principal. Confidentiality does not remove tax monitoring obligations (the RW section of the tax return). The Firm assists with both the establishment and the day-to-day administration of fiduciary mandates.
What are the tax obligations of settlors or beneficiaries of a foreign trust?
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Italian residents who are settlors or beneficiaries of a foreign trust are subject to tax monitoring obligations: they must report assets held through the trust in the RW section of their tax return and pay IVAFE (on financial assets) or IVIE (on foreign property). For inheritance and gift tax purposes, art. 4-bis TUS — introduced by D.Lgs. 139/2024 — places the taxable event at the time assets are distributed to beneficiaries, with the option to pay the tax in advance when assets are settled into the trust; territorial scope rules linked to the settlor's residence and the location of the assets are also relevant. Penalties for failure to comply with tax monitoring obligations are significant. The Firm assists with regularising past tax positions and ensuring proper ongoing management.
Is it still worthwhile setting up a trust following the 2024 tax reform?
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Yes. D.Lgs. 139/2024 did not bring taxation forward to the time assets are settled into the trust: it confirmed taxation at the time of distribution to beneficiaries (art. 4-bis TUS), leaving the settlor the option to pay in advance. A trust remains a useful instrument in many situations: protecting assets against future risks, planned intergenerational transfers, managing assets for vulnerable individuals (Legge 'Dopo di Noi'), and business continuity. The reform has reduced interpretative uncertainty and, for trusts benefiting children and spouses, tax-free allowances of €1 million per beneficiary remain applicable. Whether a trust is worthwhile depends on the circumstances and requires an individual assessment.
Specialist Professionals
Trusts & Fiduciary Companies — Where We Operate
Our Firm provides services in trust & fiduciarie from our office in Rome to clients throughout Italy. We also assist businesses and individuals in Milan, Naples, Florence, Turin, Bologna and the main cities in Lazio.
Do you need assistance?
Our team is available for a tailored consultation.