The Italian rules for the reporting of a foreign pension or retirement benefits schemes are vague and Italian centric. This leads, for many taxpayers to uncertain positions where they transfer residence to Italy benefitting from or participating in such schemes.
The fundamental starting point is that, in the Italian context it is the Sate that takes on provision of retirement benefits for most Italian workers. Other forms of retirement benefits schemes, with some exceptions, are viewed as “supplementary” or ” complimentary to the State scheme.
Reporting Foreign Financial Assets – General Rules
Under Italian tax law, foreign financial assets held by Italian tax residents must be reported in Quadro RW of the Modello Redditi PF, and may be subject to IVAFE (Imposta sul valore delle attività finanziarie detenute all’estero), a wealth tax levied at 0.2% annually on the value of such assets.
It is clear from the instructions that foreign pension schemes generally fall within the obligation to report. Indeed there is a specific category code (12) for ” Forme Di Previdenza Gestite Da Soggetti Esteri” i.e. Pension Funds Managed By Foreign Entities.
The Italian Tax Agency have provided guidance, and note that it is only guidance, not necessarily law on when Foreign Pensions Schemes do not need to be reported. Underlying this guidance seems to an acceptance of a non discrimination argument, to the effect that foreign nationals, under most of Italy’s double tax treaties, should not be subject o a dissimilatory tax treatment comparted to Italian nationals. That principle is evidently developed in the context of the Italian pension scheme environment where as mentioned above the State, via the national welfare institute INPS, takes responsibility for Italian workers’ pensions.
A 2013 Tax Agency Circular states that there are exceptions to the general rule:
Exceptions
When Foreign Pensions Are Not Reportable and/or liable to Wealth Tax
1. Foreign State Pension Schemes
Such schemes which are analogous to a pension managed by INPS
Schemes with Mandatory Contributions by Law
Foreign pension schemes managed by non Italian institutions are not subject to RW reporting or IVAFE if:
Amounts paid by legal obligation into supplementary pension schemes organized or managed by foreign companies or institutions are not subject to fiscal monitoring.
- The object of scheme is to make provision for the retirement of the worker within the workplace
- Contributions were made under legal obligation (i.e. they were voluntary contributions)
- The taxpayer does not have direct management right over funds held within the pension scheme
Source: Circolare n. 38/E (2013), §1.3.1
Conclusion: Such schemes are excluded from Quadro RW and not subject to IVAFE, as they do not constitute reportable financial assets.
2. Schemes Established by National Collective Agreements
Pension schemes established by national collective labor agreements (contratti collettivi nazionali) are also exempt, provided:
The scheme arises from a collective agreement, not an individual contract of employment arrangement
The contributions are mandatory under employment terms
This exemption is difficult to apply in many Anglo-Saxon jurisdictions, where collective agreements are rare outside the public sector. Most UK workplace pensions (e.g., Nest) are established by statute, not collective bargaining. Whether a workplace pension scheme – or 401k
Supporting Interpelli
Interpello n. 471/2020
Focus: Swiss second pillar pension (LPP)
Conclusion: Not reportable in RW; not subject to IVAFE during accumulation
Reasoning: No direct availability or control by the taxpayer
Application to UK Nest Pension
The Nest pension is a UK workplace pension:
Established under the Pensions Act 2008
Contributions are mandatory for eligible employees and employers
It is not a voluntary investment account
Conclusion: Nest aligns with the category of mandatory workplace schemes and is therefore not reportable in RW and not subject to IVAFE, provided no voluntary contributions or direct investment control exist.
Conclusion
I
IVAFE
The question then arises as to whether a foreign pension scheme is subject to IVAFE, the wealth tax on foreign financial assers.
The tax on the value of financial assets held abroad (IVAFE) applies to financial assets such as current accounts, deposits, securities, shares, mutual funds, life insurance and capitalization contracts held abroad by individuals resident in Italy.
The Agenzia delle Entrate has acknowledged that certain foreign pension schemes may be exempt from IVAFE, particularly when they mirror the structure and regulatory treatment of Italian pension funds, set up pursuant to Legislative Decree No. 252 of 5 December 2005 (“Disciplina delle forme pensionistiche complementari” – Regulation of Complimentary Pension Schemes”). Art. 13, (2-ter) of the Italian stamp duty tariff Tarif – Parte 2, Annex D.P.R. 642/1972 states:
“The tax is not due for supplementary pension schemes governed by Legislative Decree No. 252 of 5 December 2005.”
It follows that pension funds governed by D.Lgs. 252/2005 are exempt from the imposta di bollo on the value of assets under management. This exemption is grounded in Article 13, paragraph 2-ter of the tariff annexed to D.P.R. 642/1972.
This logic is supported by Circular 38/E (2013) and reinforced in Interpello 14/2024.
While pension schemes are not explicitly listed, the circular establishes a broad definition of “attività finanziarie” that includes any foreign-held financial instruments unless specifically excluded.
Thee is no general exclusion for foreign pension schemes. It appears from Tax Agency guidance that structured as financial assets such as retirement savings schemes life insurance back (e.g., SIPPs, personal pensions) are subject to IVAFE, whereas mandatory occupational schemes may be excluded — a position later clarified in Circolare 38/E (2013) and various interpelli.
Interpello no. 5/2024
“Il valore della posizione pensionistica non è soggetto ad IVAFE, in applicazione dei chiarimenti forniti dalla Circolare 2 luglio 2012, n. 28.”
Translation:
“The value of the pension position is not subject to IVAFE, in accordance with the clarifications provided in Circular 28/E of 2 July 2012.”
This confirms that regulated foreign pension vehicles, such as UK SIPPs, are excluded from IVAFE, provided they meet the criteria of being structured retirement schemes and not directly held financial assets.
Legislation
Article 4, DL 167/1990 (monitoraggio fiscale)
Article 19, DL 201/2011 (IVAFE)
Tax Agency Website
Tax Agency Circular no. 28/E (2012)
Tax Agency Circular no. 38/E (2013)
Reply no. 471 – Income tax regime applicable to benefits paid by a form of
social security attributable to the so-called ‘Swiss third pillar’ – Article 17,
paragraph 1, letter a) of the Consolidated Income Tax Law (Tuir)
The value of the pension position held in a UK SIPP is not subject to IVAFE, referencing the principles laid out in Circolare n. 28/E (2012).