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Tax Pills

  • Mortgage Loans Report 2022. Online the publication of the Revenue Agency Observatory of the real estate market

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    The latest edition of the Mortgage Loans Report, a statistical work elaborated by the Observatory of the Real Estate Market (OREM) of the Revenue Agency, is now available on the Agency's website.

    The 2022 Report - The study, which covers 2021 data and trends, analyses all loans granted in the face of a mortgage guarantee on real estate and provides some information on their intended use. In particular, the Report analyses the main data for 2021 regarding the flow of new mortgages (thus not including the so-called subrogation) and reports the evolution of the time series.

    The data analysed - The Report illustrates statistics on mortgage loans (number of mortgaged properties, capital disbursed, interest rate applied to the first instalment), through a classification by "type of deed" and by "geographical areas". It also contains statistics on the destination of the loan disbursed and furtherly highlights how much of the debt capital 'extracted' from the mortgaged property actually returns to the property market. This analysis is carried out by territorial areas (North, Centre and South) and by the eight largest Italian cities by resident population.

    Data focus – A total of approximately 456,000 mortgage deeds were signed and registered in 2021. The real estate units mortgaged as a guarantee for loans amount to 1,017,087 and are up by 25.8% compared to 2020. The value of the mortgages signed last year is above 101 billion euro, or 5.7% of Italy's GDP, marking an increase of 29.5% compared to 2020. For a correct understanding of these increases, it should be considered that the 2021 figures are compared with those of the 2020, that was marked by the Covid-19 pandemic shock on the economy.

    Grouping the mortgages by geographical areas - The analysis of mortgaged properties and capital is also detailed by geographical areas. A further aggregation, called 'multi-area', has been added to the usual territorial breakdowns, representing all deeds with mortgaged properties located in different geographical areas. The territorial coverage concerns all real estate units registered in the urban cadastre and mortgaged, located in the national territory with the exception of those where the system known as “tavolare” is in force for real estate advertising. In 2021, as in previous years, has been revealed a strong concentration, especially in terms of number of properties, in the northern regions where in terms of the quantity of mortgaged real estate and of 'drawn' debt capital, has seen a general increase in volumes in 2021. Indeed, the increase in mortgages is more pronounced in the Central and Northern areas, while the rise in debt capital is more marked in the Central and Southern areas.

    Stefano Latini

    URL: https://www.fiscooggi.it/tax-pills/articolo/mortgage-loans-report-2022-online-the-publication-of-the-revenue-agency
  • Italy Revenue Agency issued a new Circular letter clarifying taxation of income received from Trusts

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    After public consultation, the new Circular on trusts in its final version is now available on the Revenue official-website. The first thing to emphasise is that the Trust planning is now easier after the latest clarifications published by Revenue Agency. That is because this last explicatory step finally makes the relationship between taxation and trusts more homogeneous and organic and therefore makes the rules easier to apply. Indeed, with the Circular No. 34/E, issued on 20 October, the Italian Revenue Agency fixed the lines to follow on the direct and indirect taxation of income received from trusts located in preferential tax jurisdictions.

    The most important points addressed by the Circular – Particularly, the interpretative document explains: a presumption in favour of taxation of income attributed to Italian residents when the trust fails to identify the taxable income; income tax treatment of assets contributed to trusts; taxation of beneficiaries in Italy for the income of resident and non-resident trusts; the application of inheritance and gift taxes to trust contributions and tax monitoring requirements.

    Wealth Taxes (IVAFE and IVIE) for Italian tax resident trusts - The Circular grasps also the opportunity to clarify the functioning of the “Property Tax on Real Estate Held Abroad – IVIE) and on “Net Wealth Tax on Financial Assets Held Abroad – IVAFE). Since 2020, Italian resident individuals, non-commercial companies (i.e. società semplice) and entities (i.e. trusts) are obliged by law to pay a wealth tax also for assets held abroad. The Italian Tax Authorities clarify the impact of the tax residence rules on foreign trusts and that attention must be given to non-white-list foreign trust receiving an immovable assets (or related rights) from Italy.

    Tax Monitoring obligation for Italian tax residents - On the issue of the monitoring obligation for beneficiaries of foreign opaque trusts in their role of beneficial owners, the Agency, following the publication for consultation, has taken into account the numerous comments received (point 5 of the Circular). In brief, the subjective scope of application has been reduced compared to the original draft version of the document and it has been clarified that the beneficiaries of discretionary trusts, on the basis of the available information, such as the case in which the trustee communicates his decision to allocate the income or capital of the trust fund to him, are obliged to indicate in the RW panel the amount of the relevant claim against the trust, in addition to the investments and financial assets held abroad.

     

    Stefano Latini

    URL: https://www.fiscooggi.it/tax-pills/articolo/italy-revenue-agency-issued-new-circular-letter-clarifying-taxation-of-income