VEHICLES WITH ITALIAN LICENSE PLATE FOR NON-RESIDENTS
Since the early 1990s, Joost van der Heijden has provided legal services for real estate transactions to Dutch and other non-Italian clients who are not residing in Italy. Many of these clients, who have purchased second homes in Italy, often inquire about owning a vehicle with an Italian license plate.
According to the Italian Highway Code (Codice della Strada), only residents in Italy can own such vehicles. Being a resident means being registered in the registry of the Italian Municipality where one resides.
However, most clients prefer not to become residents to avoid the obligation of filing yearly tax returns and paying income tax on their global income in Italy. This led to the search for an alternative solution.
Car ownership through a legal entity
Founding an Italian legal entity (a simple association) with a statutory purpose allows the association to buy and/or import any kind of vehicle with an Italian license plate.
This method is popular among clients from the Netherlands, other EU member states, the United Kingdom, Scandinavia, the United States, and Australia.
How to Set Up the Legal Entity
To set up the entity, the following steps are required:
- Two founders are needed, preferably married partners or members of the same family, both with an Italian fiscal code and at least one being the owner of a second home in Italy.
- One of the founders will act as the president and legal representative of the association.
- The procedure usually takes around 6 weeks (excluding holiday periods) once all necessary documents are submitted to my accountant in Italy.
Required documents:
- Photocopies of the passports of the two founders.
- Certificate of the Italian tax code for both founders (assistance available if needed).
- Copy of the first two pages of the deed of sale of the house in Italy.
- Addresses of the founders in their home country and the address of their house in Italy, which will serve as the registered office of the association.
No Recurring Costs
The deed of incorporation is registered with the tax authorities in Italy, and the association will receive a fiscal code but not a VAT code. It will not be registered with the Chamber of Commerce or any other registry. The association is not required to compile and publish annual accounts or file a tax return, resulting in no recurring costs.
The only expenses involved are the one-off costs of incorporation, in total €2,500, including €264 for registration taxes; the remaining part covers the fee for the professional services of me and my Italian accountant, general expenses and VAT.
Change of Ownership and Import
Once the deed of incorporation is registered, the association can buy and import any desired vehicle, whether new or used. The change of ownership requires assistance from the ACI (Automobile Club Italia) and the Motorizzazione, part of the Italian Ministry of Transport. These offices are available throughout Italy. Importing foreign cars also requires prior permission from the tax office of the province where the association’s registered office is located.
Car Insurance
Car insurance in Italy can be relatively expensive, with rates partly depending on the location of the association’s registered office. A no-claim bonus will need to be built up from the beginning. It is advisable to request an insurance offer before establishing the association, and to consider an insurance company that allows contract suspension during periods when the car is not used for extended times.
Further information
For more details or to arrange a meeting, please don’t hesitate to get in touch. A Teams meeting can also be arranged if preferred.