The Italian Government has for many years operated a white list of jurisdictions that the Italian authorities consider as being cooperative tax jurisdictions and have in force adequate tax information exchange agreements with Italy. Companies and other entities registered in jurisdictions that appear on the white list enjoy the benefit of various tax reliefs and tax breaks in Italy.
The white list has recently been updated and now includes the British Virgin Islands (BVI) and the Cayman Islands. The addition of these two jurisdictions recognises the bilateral tax information exchange agreements both countries have entered into with Italy as well as implementation by them of the OECD Common Reporting Standard for the automatic exchange of information.
As a result of inclusion on the white list companies, investment funds and other entities registered in BVI and Cayman can now invest in Italian assets, including bonds and securities, certain real estate, investment funds and securities lending transactions, and will qualify to receive interest payments exempt from certain Italian taxes.
The tax exemption will be from Italian tax on interest, premiums and similar payments received by the holders of bonds and other securities.
For those considering investing in Italian capital markets, investment fund transactions and structured finance, the use of BVI and Cayman Island registered corporate vehicles will now be more attractive with the benefit of Italian tax breaks that were previously denied to them.
At Rosemont in Monaco we have the expertise and experience to provide a full incorporation and compliant administration services for BVI and Cayman Islands companies and entities. Contact us for further information on p.brigham@rosemont-mc.com