Italy: Grace period for “no-deal” Brexit

A decree law granting an 18-month transitional period post “no-deal” Brexit was approved by the Italian government and published on 25 March 2019 in the Official Gazette no. 71.

This grace period starts from the exit date of United Kingdom (UK) from the European Union (EU), provided that an agreement has not been reached.

Based on this Decree, eligible UK residents may continue, during these 18 months, to apply and obtain the reduced tax rates on dividends from Italian equities, as granted by the Italian domestic legislation for EU residents being corporations or pension funds.

We remind customers that the eligibility for tax exemption on interest paid for Italian bonds subject to the Decree Law 239/1996 is not based on the EU residency. Therefore, no changes should intervene for interest due to Brexit, at least until further notice from the Italian government.

We continue to monitor the Italian market for new developments and will provide more information as it becomes available.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A. its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.