Family office in ItalyOverview
Italian family offices range from a few professionals inside a family holding to independent multi-family offices that serve several families. Neither form has a legal definition. Article 18 TUF reserves investment services provided professionally to the public to banks, investment firms (SIMs) and other authorised intermediaries; a single-family office managing only the family's own assets, typically through entities the family owns, does not offer services to the public and needs no financial licence. An MFO that manages portfolios on a discretionary basis for unrelated families needs a SIM authorisation under article 19 TUF; one that only gives investment advice can register as a financial advisory company on the OCF register under article 18-ter TUF, which does not permit holding client money or securities. Purely administrative, reporting and coordination services fall outside the TUF.
The most distinctive Italian vehicle is the società semplice, a simple partnership that cannot carry on commercial activity but can hold shareholdings, real estate and other assets. It is tax-transparent, keeps the family's ownership in a private contract rather than corporate statutes, and is widely used as the top holding for a family business, often with rules on transfers, voting and succession. Where the family reinvests rather than distributes, a holding S.r.l. or S.p.A. is used instead: under the participation exemption in articles 87 and 89 TUIR, 95% of qualifying dividends and gains on holdings held for at least 12 months are exempt from corporate income tax (IRES, 24%).
Trusts are recognised under the Hague Convention, ratified by Law 364/1989, and are used for succession, protection of vulnerable beneficiaries and the separation of business control from economic benefit. Legislative Decree 139/2024 reorganised the inheritance and gift tax treatment of trusts from 2025, taxing transfers in principle when assets pass to beneficiaries, with an option to pay at settlement. Transfers of family businesses and controlling stakes to descendants or a spouse can be exempt from inheritance and gift tax where control is held for at least five years, and the patto di famiglia allows an entrepreneur to transfer a business to chosen descendants during their lifetime.
The new-resident regime under article 24-bis TUIR replaces Italian tax on all foreign-source income with an annual lump sum. It was EUR 100,000 when introduced in 2017, rose to EUR 200,000 for those moving after 10 August 2024, and the 2026 Budget Law raised it to EUR 300,000 for those transferring residence from 1 January 2026, with EUR 50,000 for each family member included. It lasts up to 15 years, requires non-residence in Italy for at least 9 of the previous 10 tax periods, and also exempts foreign assets from wealth taxes on foreign holdings and from inheritance and gift tax while the option is in force; gains on qualifying holdings realised in the first five years are excluded.
Key benefits
- Elective lump-sum tax on foreign income for new residents, with family members included at a lower amount
- Exemption from Italian inheritance and gift tax on foreign assets while the new-resident regime applies
- Inheritance and gift tax at 4% between spouses and lineal relatives above a EUR 1 million allowance per beneficiary, and an exemption for qualifying transfers of family businesses
- Società semplice: a transparent, contract-based holding with no commercial activity, suited to long-term family ownership
- 95% participation exemption for corporate holding structures
- Recognition of trusts under the Hague Convention and a codified tax regime after the 2024 reform
- Access to a strong private banking, fiduciary and professional ecosystem in Milan, Rome and other centres
Requirements
- TUF perimeter review: no investment services to the public without authorisation; SIM authorisation under art. 19 TUF for discretionary portfolio management; OCF registration for an independent advisory company
- Formation of holding entities by notarial deed and registration with the Companies Register of the competent Chamber of Commerce
- Effective management in Italy where the holding is to be Italian tax resident, and attention to the reverse rule for foreign holdings managed from Italy
- For the flat tax: non-residence in Italy in at least 9 of the 10 prior tax periods; election in the tax return for the year of transfer or the following year, with an optional prior ruling
- Beneficial ownership reporting for companies and trusts under the AML decree: the register was suspended pending EU proceedings; the Court of Justice of the EU upheld the framework on 21 May 2026 and reactivation was awaiting implementing measures — confirm the current filing position
- AML/CFT duties under Legislative Decree 231/2007 for licensed intermediaries, fiduciary companies and professionals involved
- CRS and FATCA classification of holdings, fiduciary mandates and trusts, with reporting by financial institutions to the Revenue Agency
- Foreign asset reporting (RW form) and wealth taxes on foreign holdings for resident individuals outside the flat-tax regime
- Annual accounts for corporate holdings and accounting records for trusts with Italian-resident trustees
- Trust deed drafting consistent with the 2024 trust tax reform and with the forced-heirship rules of the Civil Code
Structure designs
Società semplice as family holding
Suits families holding a controlling stake in a family business or a real estate portfolio. Ownership, voting and succession rules sit in the partnership agreement, the partnership is transparent for tax, and it is a common platform for gifting shares to the next generation.
Holding S.r.l. or S.p.A. with participation exemption
S.p.A.: EUR 50,000 share capital
Suits families that reinvest, because 95% of qualifying dividends and gains are exempt from IRES. It can also employ the family office team and coordinate investments across operating companies.
Trust for succession and protection
An Italian or foreign-law trust under the Hague Convention, with a professional or family-controlled trustee, separates control from benefit, protects vulnerable beneficiaries and can hold the family holding's shares. Tax follows the 2024 reform.
Fiduciary company mandate
A regulated fiduciary company holds assets in its own name on behalf of the family, adding confidentiality towards third parties while beneficial ownership is still disclosed to authorities and obliged entities.
New-resident flat tax with a foreign structure
EUR 300,000 a year (EUR 50,000 per family member)
For families relocating to Italy whose wealth is largely held abroad. The flat tax covers foreign income, while foreign holdings, trusts or a Swiss, Luxembourg or Monaco family office continue to manage the assets. Italian-source income is taxed normally.
Step-by-step process
- 1
Family, residence and asset review
Map family members, their tax residence history, Italian and foreign assets, and expected succession or liquidity events.
- 2
Regulatory and tax design
Confirm the services stay outside the TUF reserve or plan for authorisation, choose between società semplice, holding company and trust, and model inheritance tax, participation exemption and flat-tax outcomes.
- 3
Flat-tax planning for relocating members
Check the 9-of-10-year non-residence test, decide which family members to include, and consider a ruling request to the Revenue Agency before or after the move.
- 4
Formation and contribution
Execute the notarial deed or trust deed, register the entity, open bank and custody accounts, and transfer assets with attention to gift tax and registration duties.
- 5
Governance and compliance
Adopt a family agreement, investment policy and investment committee; complete beneficial ownership, CRS/FATCA and AML formalities.
- 6
Ongoing review
Annual tax filings and payment of the flat tax by the ordinary deadline, accounting and reporting, and periodic review of the structure against legislative changes.
Typical documents
- Passports, tax codes (codice fiscale) and proof of address for family members, directors and trustees
- Evidence of prior tax residence for the 9-of-10-year test
- Family tree and ownership chart down to the ultimate beneficial owners
- Source-of-wealth and source-of-funds evidence
- Draft partnership agreement, articles of association or trust deed
- Valuations of contributed companies and real estate
- Family agreement and investment policy
- CRS and FATCA self-certifications
- For a licensed MFO: SIM application or OCF registration file, business plan and fit and proper documentation
How Legal Wealth helps
Legal Wealth helps families decide how Italy fits their plan — as a place to live under the new-resident regime, as the seat of a family holding, or both — and coordinates Italian notaries, tax advisers and trustees to implement it. We check the regulatory perimeter, compare società semplice, holding and trust structures against succession goals, prepare the flat-tax analysis and ruling materials, and connect the Italian structure with offices and assets in other jurisdictions — discreetly and with compliance first.
Enquire with Legal WealthFrequently asked questions
Does a single-family office in Italy need a licence?
Not if it manages only the family's own assets and does not offer investment services to the public. A multi-family office needs SIM authorisation for discretionary portfolio management, or OCF registration as a financial advisory company if it only gives investment advice.
How much is the Italian flat tax for new residents in 2026?
For individuals transferring tax residence to Italy from 1 January 2026, the 2026 Budget Law sets EUR 300,000 a year on foreign-source income, plus EUR 50,000 for each family member included. Earlier entrants opted at EUR 100,000 or EUR 200,000.
Why do Italian families use a società semplice?
It is a transparent partnership that cannot carry on commercial activity but can hold shares and real estate, so it suits long-term ownership of a family business with succession and transfer rules set out in a private agreement.
Are trusts recognised in Italy?
Yes, through the Hague Trust Convention ratified by Law 364/1989. Since 2025, Legislative Decree 139/2024 taxes trust transfers for inheritance and gift tax in principle when assets reach beneficiaries, with an option to pay at settlement.
Can a family business pass to the children free of inheritance tax?
Transfers of businesses and controlling shareholdings to descendants or a spouse can be exempt where the recipients keep control or continue the business for at least five years. Other assets benefit from a EUR 1 million allowance per child or spouse, with 4% tax above it.
Does a family office give residence rights in Italy?
No. Non-EU family members need a visa and residence permit, for example Italy's investor visa, an elective residence visa for those with sufficient passive income, or a work permit for staff. The flat tax is a tax election, not a residence permit.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
Sources
- Fiscal Focus — Neo-residenti, la Manovra 2026 alza l'imposta sostitutiva sui redditi esteri a 300.000 euro
- Diritto.it — Il regime fiscale dei neo-residenti dopo la legge di Bilancio 2026
- FiscoeTasse — Antiriciclaggio: la Corte UE sblocca il registro dei titolari effettivi
- InformazioneFiscale — Titolare effettivo, il punto sulla comunicazione
