According to the Revenue Agency, acts executed abroad, for use in Italy, must be legalized and deposited with a notary or the district notarial archive.
The relief applies to all acts, documents, and provisions that spouses undertake to regulate the legal and economic aspects of divorce proceedings or the cessation of civil effects of marriage
In a recent response to an inquiry, the Revenue Agency provided clarifications regarding the tax benefits associated with divorce agreements. Specifically, in response to inquiry No. 351 of 2023, the focus was on a divorce agreement executed abroad concerning real estate properties located in Italy.
Case in point
The taxpayer presented the following scenario to the Revenue Agency:
In 2017, they purchased real estate properties in Italy with their partner.
Subsequently, a divorce was granted through a judgment issued in Spain, and the parties regulated their financial relationships through a notarial deed called the “Matrimonial Convention – Distribution and Allocation of Joint Assets and Termination of Joint Ownership.”
However, because the Matrimonial Convention prepared in Spain for properties located in Italy did not include the necessary “urban planning information” and data regarding cadastral compliance, it became necessary to deposit an act containing the missing information with an Italian notary.
In light of this, the taxpayer inquired whether the tax relief provided by Article 19 of Law No. 74 of March 6, 1987, would apply to the deed to be drawn up by the Italian notary.
The tax relief
As clarified by the Revenue Agency:
Furthermore, Circular No. 27/E of June 21, 2012, clarified that, from an objective standpoint, the exemption provided for in Article 19 of Law No. 74 of 1987 applies to all acts, documents, and provisions that spouses undertake to regulate the legal and economic aspects of divorce proceedings or the cessation of civil effects of marriage. The rationale behind this exemption is to facilitate access to legal protection, preventing tax burdens from further complicating the resolution of marital crises.
The Court of Cassation subsequently specified that the exemption extends to all acts, documents, and provisions related to the personal separation proceedings of spouses to ensure compliance with the obligations assumed by separated spouses in order to restructure their economic interests.
Specifically, the relief applies to acts and agreements aimed at regulating the financial relationships between spouses following the dissolution of the marriage or personal separation, including agreements that involve the recognition or transfer of ownership of movable and immovable assets to either spouse.
The Agency’s solution
The Revenue Agency notes that acts executed abroad, for use in Italy, must be legalized and deposited with a notary or the district notarial archive. The obligation to request registration of the notarial act depositing the foreign deed falls upon the notary who receives the document for deposit.
To transfer the real estate properties located in Italy from one spouse to the taxpayer, the “Matrimonial Convention – Distribution and Allocation of Joint Assets and Termination of Joint Ownership” must be deposited with an Italian notary, who will include the necessary urban planning and cadastral compliance information.
Therefore, this act constitutes a necessary requirement for the transfer of real estate properties, as mandated by national legislation.
Considering the specific case, taking into account that the parties have judicially dissolved their marriage and that, as stated by the taxpayer, the deposit with the Italian notary is a “condition for implementing the divorce agreements,” it is believed that the taxation of the related act can be carried out in accordance with the aforementioned Article 19 of Law No. 74 of 1987, i.e., exempt from stamp duty, registration tax, and any other fees applicable to acts, documents, and provisions related to the cessation of civil effects of marriage.
