Shipowners moving to Italy

It is clearly evident to everyone that, in recent years, Italy has become one of the most attractive countries for foreign individuals – whether from within or outside the EU – who decide to move to our country. The reasons for this may vary, often linked to the application of one of the many favourable tax regimes, or simply to the choice to live in one of Italy’s many beautiful, traditional locations – and, we might say, perhaps even unique in the world.

In light of this, two tax-related issues typical for yacht owners have recently come to the fore once again; we intend to outline them here, albeit briefly: the obligation to comply with tax monitoring requirements and the VAT regime governing the transfer to Italy of yachts intended for the personal use of those transferring to Italy.

As regards the first point, it should be noted that individuals who become tax residents in Italy are required to comply with the tax monitoring obligation, introduced by Decree-Law No. 167/1990, in relation to foreign investments and foreign financial assets held by way of ownership or other legal rights in real property. These include boats and pleasure craft registered in a foreign maritime register, regardless of whether their usual port of mooring or shipyard is in Italy or not. It should be clarified in this regard that not only the formal owners of such assets and investments held abroad are required to declare them, but also those who, whilst not being the direct owners, are considered the beneficial owners of the investment. Furthermore, where there are multiple rights over the same investment – such as, for example, bare ownership and usufruct – both the holder of the right of usufruct and the holder of bare ownership are subject to monitoring. It is, moreover, generally accepted – on the basis of the relevant principles – that the monitoring obligation also applies to foreign pleasure craft held under a leasing contract, where ownership of the asset is held by the leasing company but the shipowner resident in Italy is the actual user.

In order to comply with the obligations in question, individuals resident for tax purposes in Italy must complete Section RW of their tax return. Completing Section RW does not automatically result in the foreign investment being subject to taxation in Italy; rather, its purpose is to notify the tax authorities of the holding of foreign investments that may potentially generate taxable income in Italy.

Of special importance in this regard is Resolution No. 172/E of 3 July 2009, in which the Italian Revenue Agency clarified that foreign vessels and pleasure craft – that is, those registered in a foreign maritime register – are considered foreign assets of a capital nature and must be declared in Section RW. Indeed, the ownership of a foreign boat or vessel by a resident individual constitutes a potentially taxable source of income in Italy, as is the case, for example, in situations of occasional charter or leasing. With regard to the value to be declared in section RW, the taxpayer must refer to the purchase cost, as evidenced by the relevant supporting documentation, or to the market value.

In this regard, it should finally be noted that the aforementioned tax monitoring obligations do not apply to all new residents who have opted for the tax regime referred to in Article 24-bis of the TUIR, as clarified, amongst other sources, by the Italian Revenue Agency in Circular No. 17/E/2017.

Another matter of significant importance concerns the VAT regime applicable in cases where a non-EU shipowner moving to Italy intends to bring their yacht with them. In particular, the question has arisen as to whether, in such cases, the yacht owner must carry out a standard import procedure, with the corresponding payment of VAT, or whether they may benefit from the VAT exemption on importation for personal effects imported by persons transferring their residence to a Member State. When asked about this matter, the Italian Revenue Agency clarified the applicable regime in Ruling No. 105/2026. In particular, the Italian Revenue Agency establishes, as a preliminary point, that the exemption scheme in question is to be considered applicable even though EU Directive 2009/132/EC, which provides for its application, has not been formally transposed into Italian law.

Under the Directive, the VAT exemption therefore applies to goods intended for the personal use of a shipowner who is moving to Italy, and pleasure craft are expressly mentioned amongst these.

Furthermore, to prevent any abuse of the provision in question, it is provided that, in order to benefit from the aforementioned exemption, the new resident in Italy must have been in possession of and made use of the goods in their previous place of normal residence for a period of at least six months prior to the move. In this regard, in the aforementioned Ruling No. 105/2026, the Italian Revenue Agency has adopted an approach that is not strictly formal but rather more substantive, clarifying that “as regards the requirement of ‘possession’ of personal property, according to the case law of the Court of Justice of the European Union – to which reference must be made to ensure the uniform application of the Directive – this is to be understood as the economic availability of the property, that is, effective control over it”.

• The growing interest among foreign individuals in moving to Italy raises tax issues of great significance for those who own yachts for private pleasure use.

• Where a individual who moves to Italy continues to register their yacht in a non-Italian register, they will – in most cases – be required to comply with tax monitoring obligations and to notify the Italian Revenue Agency annually of their ownership of the yacht.

• Non-EU yacht owners are permitted to bring their yacht with them, as it is considered a personal property under the EU Directive, without having to pay import VAT.