International tax law
International corporate structures
We develop shareholding and holding structures for projects with a link to Italy, considering tax consequences, financing, liability and ongoing administrative effort together.
Service area International tax law
What matters to you
Whether a South Tyrolean company sets up a sales company in Germany, an Austrian entrepreneur invests in Italy or a family pools its shareholdings in a holding company: the chosen structure determines how profits, distributions and later sales are taxed.
It is not just about tax rates. Economic substance, liability, financing, succession and administrative effort are just as important. We develop structures that meet these requirements and implement them together with notaries and partners abroad.
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Holding companies and shareholdings
A holding company can pool shareholdings and make financing or succession within a group easier. We examine how dividends and later share disposals are taxed in the planned structure and which reliefs apply in the specific case.
Different requirements apply to dividends and capital gains. We therefore look separately at the size of the shareholding, the holding period, the activity and the residence of the companies involved.
Companies abroad
Foreign subsidiaries of Italian companies are subject to special rules. Controlled foreign company (CFC) rules can attribute the profits of a low-taxed foreign company with mainly passive income directly to Italy.
In addition, a company incorporated abroad may be deemed resident in Italy if it is actually managed from Italy (esterovestizione). Anyone setting up a foreign company should therefore clearly establish where decisions are made and who makes them.
- Place of management and corporate bodies
- Local substance: staff, premises, decision-making powers
- Financing and interest deduction within the group
- Withholding taxes on dividends, interest and royalties
Foreign investors in Italy
Investors from Germany, Austria or Switzerland must choose between an Italian company, such as a limited liability company (S.r.l.), a branch or a direct shareholding. Each option has consequences for liability, bookkeeping, income taxes (IRES and IRAP) and the taxation of distributions abroad.
Within the EU, distributions to parent companies can be made free of withholding tax if the conditions of the Parent-Subsidiary Directive are met. In relations with Switzerland, the double taxation agreement and bilateral agreements apply.
Cross-border restructuring
Cross-border mergers, transfers of registered office or contributions are possible but require careful planning. If a business or company leaves the Italian taxing jurisdiction, an exit tax may be due on hidden reserves.
We review the tax consequences in advance, prepare the necessary documents and coordinate the steps with the advisers involved in both countries.
Step by step
How we work together
Clarify goals
We discuss what the structure needs to achieve: expansion, ring-fencing liability, financing or succession.
Compare options
We compare possible structures and their tax and organisational consequences and make a recommendation.
Implementation
We handle incorporation, articles of association, registration and contracts, coordinating with the notary and foreign advisers.
Ongoing support
We handle bookkeeping, tax returns and regular reviews of whether the structure still suits your business.
Frequently asked questions
Answers on holdings, foreign companies and shareholdings.
Is a holding company worthwhile for a medium-sized business?
It may be, for example if several shareholdings are held, profits are to be reinvested or a succession is coming up. However, a holding company involves additional administrative effort. We work out the pros and cons for your case.
Can I set up a company abroad to save tax?
Incorporating abroad does not in itself shift taxation. Key factors include the actual place of management, the activity carried out locally and the relevant Italian rules. We review the planned structure and its business rationale before incorporation.
Which legal form suits a subsidiary in Italy?
A limited liability company (S.r.l.) is often the right choice. Depending on scale and financing, a joint-stock company (S.p.A.) may also make sense. We compare capital requirements, organisation and ongoing obligations.
Is withholding tax due on dividends paid from Italy to a German GmbH?
Under certain conditions, withholding tax may be waived or reduced. Before the distribution, we review the relevant Italian provisions, the Parent-Subsidiary Directive and the double tax treaty, as well as the required documentation.
How can we help you?
In the initial meeting, we clarify your request and discuss what support you need.