Our website uses  cookies for statistical purposes.

Our Articles

Open a Trust in Italy

Open a Trust in Italy

Foreign citizens and companies can establish various types of structures in Italy, including trusts. Even if no specific legislation provides for the establishment of trusts, both local and foreign trusts are recognized in Italy. The country was one of the first signatory members of The Hague Convention which covers the creation of trusts. Our company formation agents in Italy can offer more information on the recognition of trusts in this country, plus assistance in starting a business in Italy.

Requirements related to the creation of a trust in Italy

The main element of the trust is the document through which the entity is created. Also known as a deed, the document that establishes the creation of a trust must contain information about the person or company setting up the trust, the person in charge with the administration of the trust (also known as the trustee), and the beneficiary or beneficiaries. It should be noted that the estate can refer to various assets including money, real estate, titles of ownership, or shares in a company. Our Italian company formation advisors can offer more details on the legal requirements to set up a trust in this country.

Who can set up trusts in Italy?

Both natural persons and company owners can set up trusts in Italy, with complete support offered by our team of company formation agents in Italy. There are many entrepreneurs interested in protecting personal assets and delimitating them from the ones related to the company. This way, the company owners will not be obliged to pay the company debts from their personal assets. Our specialists can help you open a trust in Italy and tell you more about the rights involved and about how to set up a company in Italy. If you are interested in starting a company in Italy, please feel free to solicit our support and guidance.

Types of trusts in Italy

As mentioned above, under Italian legislation trusts can be set up by nationals or local citizens, cases in which they are called resident trusts, and trusts that are registered by foreign citizens or companies that are not deemed taxable in Italy, case in which they are known as non-resident trusts. There is another way in which trusts can be categorized in Italy:

  • transparent trusts;
  • opaque trusts.

Transparent trusts provide information about the beneficiaries of the assets administered by the trustees, while opaque trusts do not state clearly who the beneficiaries are. For taxation reasons, Italian trusts are required to register with the authorities, obtain a tax and VAT number.

What are the rights of the trust settlor?

The settlor of a trust in Italy has many rights and most of them refer to the ways in which the management is made. All the incomes, expenses, or investments must be established in complete agreement with the settlor. If at a certain moment, the trust suffers from breaches or unpredictable problems, the trustee must notify the settlor and give a helping solution. There are also cases of gross negligence if the trust is wrongfully handled. Luckily, our team of consultants has experience in the management of trusts, so you can talk to us and find out more about the entire mechanism.

Beneficial owners of trusts in Italy

There can be several beneficiaries of a trust in Italy, and among them are recognized settlors, trustees, and protectors on behalf of the trustee in question. Moreover, according to Italian legislation, beneficial owners can also be other persons who exercise control over the trust. Also, we emphasize here that other individuals eventually exerting control over a trust or comparable arrangement assets using direct or indirect ownership, can be beneficial owners of a trust in Italy.
However, a broad definition of beneficial owners of an Italian trust can be provided by our local team of agents. They can also explain how the taxation of trusts made in Italy is to be fully compliant.

Accessing information on beneficial owners of a trust in Italy

The beneficial owner’s information linked to a trust in Italy can be accessed by the following:

  • specific Italian public authorities without any restraint;
  • private parties holding a significant interest for a specific trust in Italy, under certain conditions. In such a case, a satisfactory indication must be delivered;
  • judicial authorities in Italy, in accordance with their recognized supremacy;
  • authorities in charge of fighting tax evasion in Italy, following strict systems and regulations;
  • persons who are subject to Know-Your-Customer responsibilities, upon accreditation.

However, in special circumstances, the access to beneficial owner information of a trust in Italy can be excepted if it would expose the owner in question to varied risks. More about trusts in Italy and disclosing information about beneficial owners can be discussed with our team of Italian agents.

Failing to report beneficial owners leads to penalties

In Italy, it is mandatory to report beneficial owners of a trust. Otherwise, administrative penalties may be imposed. Also, false reporting of beneficial owners of trusts in Italy can be penalized.

Making investments in Italy

Italy is a great option for starting a business and making investments and that because of many advantageous options and opportunities. The tourism, food industry, and the real estate sector are quite prosperous in Italy, due to the large number of companies activating in this field, plus the profits generated. The government sustains foreign investments in Italy through all sorts of tax deductions, incentives, and other encouragements. Also, the following facts and figures highlight a good part of the economic direction of Italy:

  • Around 0.9% was the economic growth recorded in Italy in 2023.
  • The same economic growth of 0.9% is estimated for the end of 2024, going up to 1.1% in 2025.
  • The estimated inflation for 2024 is 1.6%.
  • A positive contribution to Italy’s GDP growth will be provided by net exports in 2024.

Opening a trust in Italy is not a complicated procedure, but it is recommended to have an idea about the general rules that apply. This is where our team of company formation representatives in Italy can intervene and provide complete legal assistance and guidance when registering a trust. Our specialists can also act as trustees.

We remind you that in addition to legal advice for opening a trust, our agents can also help you with company formation in Italy. So, if you want to open a company in Italy, you can opt for our services. Moreover, we are here if you need a team of accountants in Italy or payroll services in Italy. Company incorporation in Italy has come to the attention of our specialists. For assistance in setting up a trust in this country, please feel free to contact our company incorporation consultants in Italy.