Tax rate on foreign bank interest or unit trust income?
Feb 19th 2019, 7:57 am
#1
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Thread Starter
Joined: Feb 2019
Posts: 42
Tax rate on foreign bank interest or unit trust income?
Hello all.
Hope you can help with this.
i receive monthly income from both foreign bank interest accounts and unit trusts, all located outside Italy.
As a resident of italy, would that foreign interest and investment income be taxed at the same progressive employment tax rates in Italy, or is there a special flat tax rate on foreign interest/investment income?
cheers.
Hope you can help with this.
i receive monthly income from both foreign bank interest accounts and unit trusts, all located outside Italy.
As a resident of italy, would that foreign interest and investment income be taxed at the same progressive employment tax rates in Italy, or is there a special flat tax rate on foreign interest/investment income?
cheers.
Feb 19th 2019, 8:55 am
#2
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Joined: Dec 2009
Posts: 2,513
Re: Tax rate on foreign bank interest or unit trust income?
Your accounts themselves fall under IVAFE tax rates - which depend on how much is in the accounts. ONthe income generated, if you dont pay tax on the interest in the country where the interest is earned, I would think it will be taxed at your normal tax band here in Italy - given that it is income.
Feb 19th 2019, 9:32 am
#4
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Joined: Oct 2016
Location: Ex Teramo, Abruzzo
Posts: 1,216
Re: Tax rate on foreign bank interest or unit trust income?
If there is one, I would look for the treaty paper with Italy and the country you are getting the income from e.g. this is the UK/Italy paper on the UK side (there is an Italian version of course). It looks complex to me, but there may be a 10% limit between these two?
Feb 22nd 2019, 1:55 pm
#5
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Joined: Dec 2011
Location: Parma
Posts: 1,489
Re: Tax rate on foreign bank interest or unit trust income?
If you are resident for tax purposes in Italy you will be subject to italian tax and therefore 26 pct on dividends , the treaty rates are be desgined to limit double taxation of dividends whereby you end up being taxed at source by country A and then on the income by country B . Reduced taxation is usually going to be accompanied by greater disclosure and you will need to inform both the instituiton paying you and the italian side that you are resident in Italy .
Feb 24th 2019, 7:51 pm
#6
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Joined: May 2010
Posts: 538
Re: Tax rate on foreign bank interest or unit trust income?
Also as a resident you are liable to 0.76% tax per year on the capital value of your holdings. (the IVIE / IVAFE wealth tax).
Last edited by Capo Boi; Feb 24th 2019 at 7:56 pm.
