The donation of money deposited at the time of the act of generosity in a foreign bank account, made through a bank transfer by a citizen residing abroad to a beneficiary residing in Italy, does not matter for the application of the donation tax in Italy
In a recent response to an inquiry, no. 7 of 2024, the Revenue Agency provided clarifications regarding the taxation on a donation of money deposited in a foreign bank account.
The Principle of Territoriality
The Revenue Agency, referring to the specific case concerning the interest of an Italian citizen purchasing a property through money received as a donation from a relative living abroad, highlights that:
- according to the provisions of art. 2 of Legislative Decree 346/90, the tax is due in relation to all property and rights transferred, even if existing abroad. However, if at the date of the succession or donation the deceased or donor was not a resident in the State, the tax is due only on the assets and rights existing there.
It follows that if the donor is a resident in Italy, the tax applies to all transferred assets or rights, including those existing abroad. On the other hand, if the donor is a resident abroad at the time of the donation, the tax is due only for assets and rights ”existing” on the Italian territory (the so-called ”principle of territoriality”).
Presumption of Existence in the State territory
According to the aforementioned rule, the following are considered to exist in the State territory:
- Shares or quotas of companies, as well as participation quotas in entities other than companies, that have their legal headquarters or administration headquarters or main purpose in the State territory; bonds and other series or mass securities different from shares, issued by the State or companies and entities, credits, bills of exchange, promissory notes, and checks of all kinds, if the debtor, the drawer, or the issuer is a resident in the State.
The Agency’s Response
In light of the above, it is understood that for the application of the donation tax, with respect to acts performed abroad by a non-resident donor, it is necessary to assess whether the donated assets are to be considered ”existing” or not in the State territory.
More specifically, with reference to the case at hand, it is necessary to examine whether the object of the donation, money, can be considered as an ”existing” asset in the State territory.
Referring to a judgment by the Court of Cassation, no. 8175 of March 24, 2021, the Agency emphasizes that:
- for the principle of territoriality of the tax for the taxability of the economic transaction in Italy, it is necessary to verify whether the economic phenomenon of the donation occurred within the Italian territory.
- The money donated by a citizen residing in Switzerland, through a bank transfer, although intended for a beneficiary residing in Italy, is not presumed to be an existing asset in the State territory, since the donor was a resident abroad and, in any case, before the disposal act, the money was deposited in a Swiss bank account. Consequently, lacking the territoriality requirement, the related donation act does not matter for the application of donation tax in Italy.
Furthermore, if the donor is a resident abroad at the time of the donation, it is subject to tax only in relation to the location of the donated asset or right in the national territory (according to the connection identified in the list established by the legislator).
Therefore, it can be concluded that the donation of money deposited at the time of the act of generosity in a foreign bank account, made through a bank transfer by a citizen residing abroad to a beneficiary residing in Italy, does not matter for the application of the donation tax in Italy.
