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By Gareth Horsfall
This article is published on: 21st April 2026
I admit it. I have been confused for years about the rendita catastale. I have never been entirely sure about its role in the Italian economy or how it benefits the individual or the system as a whole. Until now. A recent deep dive into some economic analysis finally made the penny drop.
IMU – (Imposta Municipale Propria) – The tax on second + properties and houses, which are considered luxury properties (Class A/1, A/8, A/9)
Imposta di registro, Ipotecaria e Catastale – the taxes when buying and selling property (not market value!)
Imposta di successione e donazione – the value of property is calculated using the rendita catastale for the purposes of inheritance tax. https://spectrum-ifa.com/how-can-i-save-on-inheritance-tax-in-italy
The rendita catastale represents the amount of “theoretical rent” that a householder pays to him or herself as a measure of economic consumption. It is an imputed figure — a notional income — that reflects the benefit you receive simply by living in a property you own. In other words, if a householder owns their home outright, with no mortgage or debt, then that person is considered both a consumer and an investor of the invisible rent money they would have received had they been renting out a similar property. This money is assumed to be spent, reinvested, or otherwise circulated back into the economy.
Economists consider this a growing financial benefit that property owners enjoy from not having to pay rent. It is a silent contribution to economic activity, even though no cash actually changes hands. And in a country like Italy, where home ownership is culturally and economically significant, this imputed value plays a surprisingly large role.
During the financial crisis 2008/9, the Italian economy shrank dramatically. GDP fell, unemployment rose, and many sectors contracted sharply. Yet property, proportionately, made up more of the gross domestic product. The weighting of property in Italian GDP increased despite falling house prices and fewer transactions. That gives you an idea of how severe the declines were in other parts of the economy. Even when the market was weak, the imputed value of housing — the rendita catastale — continued to represent a stable and substantial component of national wealth.
This helps explain why successive governments treat property taxation so delicately. When the financial benefit from housing takes up a larger proportion of a property owner’s economic position, it becomes politically sensitive. It is no coincidence that governments have repeatedly adjusted or abolished taxes on the prima casa, recognising that Italian homeowners’ spending habits are more important to the domestic economy than the behaviour of foreign buyers. Italy’s economic engine is fuelled by its own residents, and the majority of them live in homes they own.
The Italian economy relies heavily on home ownership. Simply by residing in debt‑free housing, paying no rent, living in family homes, or paying below‑market rents, Italians contribute a significant share to national GDP through this imputed rental value. In a country where more than seventy percent of the population live in owned residences, this contribution is not only substantial but essential. It has grown over time, rising as a share of GDP, and continues to act as a stabilising force even when other sectors fluctuate.
Understanding the rendita catastale also helps explain why property taxation in Italy often feels disconnected from market reality. The cadastral values used for tax purposes are based on an old system that does not reflect current market prices. Yet these values continue to underpin calculations for IMU, taxes on buying and selling properties, inheritance tax, and other assessments. The system persists because it provides predictable revenue for the state and a predictable burden for homeowners, even if it bears little resemblance to actual property values.
There have been discussions for years about reforming the cadastral system, modernising valuations, and aligning them more closely with market prices. But such reforms would have enormous political and economic consequences. Updating cadastral values would instantly increase the taxable base for millions of households, and no government has been willing to take that risk. So the rendita catastale remains, outdated but deeply embedded, shaping everything from tax bills to inheritance planning.
What becomes clear is that the rendita catastale is not just a quirky Italian administrative concept. It is a structural pillar of the economy, a silent indicator of wealth, and a key reason why property taxation is handled with such caution. It reflects the reality that Italians’ relationship with property is not merely financial but cultural, generational, and deeply tied to economic stability.
And now that you finally understand it, you can see why it matters — not just to economists, but to anyone living, buying, inheriting, or planning their financial future in Italy, including us.
By Gareth Horsfall
This article is published on: 21st April 2026
You may not be aware, but from an inheritance tax point of view, Italy is actually considered more like a fiscal paradise. After you have picked yourself up off the floor because I just called Italy a “fiscal paradise”, you might want to read on. If your estate, or part of it, is likely to be subject to Italian inheritance tax on your death, then the current rules may interest you.
Italian inheritance tax law dates back to the Napoleonic period.
It requires parents, on death, to leave a major proportion of their wealth to their children instead of just their spouse. This system of forced heirship still exists today and continues to shape how estates are distributed in Italy.
If the estate is passed to your spouse or relatives in a direct line, such as children, they are required to pay 4% on the value of the inheritance that exceeds one million euro per beneficiary. Brothers and sisters must pay 6% with an allowance of one hundred thousand euro each. Other relatives must pay 6% or 8% depending on the degree of relationship, but without any allowance. Non‑relatives pay 8% with no allowance.
However, there is a term called ‘eredi legittimi’ meaning that only certain relatives have an absolute right to the share of your estate on your death. These are your children and, spouse. If you don’t leave any children then your parents and brothers and sisters have a legal right to a share in your estate and only in the event that there are none of the above, would your other relatives up to the 6th degree have a legal right to a percentage of your estate.
For foreigners (non- Italians) living in Italy at the time of death they have a right to nominate the law of their home country as a way to distribute the assets from your estate on death, instead of being forced to adopt the Italian forced succession rules. (If you are from the UK, this could create significant IHT planning opportunities). It mean you are taxable in your home country (depending on the IHT rules there) but simply means you may be able to distribute your assets according to a last will and testament, if that is your choice. One exception does apply, where you have spouse of children who are resident in Italy at the time of your death, and in this https://spectrum-ifa.com/rendita-catastale-in-italy/ case, they may be legally entitled to their fair share of your estate regardless of your will. If you are in any doubt it is always best to consult a legal professional to discuss the options.
Despite Italy having a large number of people who are subject to inheritance tax each year, the tax collection is relatively small. This is due to the high allowances and also the fact that succession for a property is based on the valore catastale, not the market value. The cadastral value is often significantly lower than the real value, which reduces the taxable amount.
There has been periodic political discussion about increasing inheritance tax in Italy, but as of 2026 no changes have been implemented. The current system remains one of the most generous in Europe, especially for spouses and children. However, this does not mean that planning is unnecessary. On the contrary, understanding how your assets are treated under Italian succession law can make a significant difference to what your heirs ultimately receive. The new UK Statutory Resident rules https://spectrum-ifa.com/new-uk-inheritance-tax-rules/ for inheritance tax mean that many more UK nationals living in Italy may be able to avoid UK and Italian IHT altogether with some clever planning.
As part of any inheritance tax or succession planning that you may undertake, you may want to look at ways in which you can hold assets in a more tax‑efficient manner. The polizza assicurativa — or life assurance bond — meets exactly that criteria. Any money that you hold in one of these tax‑efficient accounts is completely free from Italian inheritance tax and is kept outside of the estate when the value is calculated. This can be particularly useful for those who wish to leave assets to beneficiaries who are not in the direct line, or who wish to avoid the constraints of forced heirship within the limits permitted by law. It is also outside the Italian equivalent of probate (successione) and so will not get potentially tied up for any length of time in administration or legal affairs, potentially saving thousands in legal fees as well.
The not‑so‑good news is that if the majority of your estate is in your property, this cannot be placed inside the tax‑protective structure. However, any other invested or investable assets can be, generally from around €250,000 upwards. One of the great advantages is that there is no upper limit to contributions. You can protect a large part of your estate from Italian inheritance tax easily and with maximum flexibility to access the capital and any income from it during your lifetime.
By Gareth Horsfall
This article is published on: 21st April 2026
If you are buying a house in Italy and are intending on benefitting from the system of detractions and deductions for the costs of building and renovating your property, then here are 5 things which we learned in our home restoration.
By Jeremy Ferguson
This article is published on: 21st April 2026
It has certainly been an eventful start to the year from a financial perspective – it’s never dull for long, that’s for sure, in economics and in financial planning. It’s impossible to ignore what’s been going on in the world, more so when it starts impacting our day-to-day lives, such as with rising oil prices when we fill up our vehicles.
Since I last wrote an article, the world is in a very different place due to the situation in Iran. As I have always said when people ask me about what I think will happen to their investments in the days, weeks or months ahead, my answer is always I simply don’t know, as what is going to happen next on the global stage is not anything that can be predicted.
The one thing I do know however, is that rather than trying to predict, it is best to simply be prepared and fully understand what you are invested in and why. Anyone with a well-structured portfolio should be aware of the risks involved, which is an important part of what I do. In simple terms, I like to use the eggs in a basket analogy, as when things like the Iran situation pop up, there tend to be winners and losers. The price of oil and gas may have risen, creating issues with prices in the stock market, but if you hold shares in oil and gas companies, these may well have increased.
Conversely there is now upward pressure on inflation, which may well mean interest rates no longer continue to fall, with the possibility of rises again in the future. This is good news though if you have money on deposit, as your savings interest is less likely to decrease, and will possibly increase. If you are invested in many different types of assets, as in the above two simple examples, when one loses, quite often another will win (so to speak).
All of this reminded me of the importance of regularly communicating with clients, particularly when ‘worry’ is prevalent in the press and news due to significant events such as those we are witnessing at the moment. It is also a reminder of how important it is for clients to fully understand what they are invested in.
Almost no clients have contacted me worried about their investment values recently, which led me to reflect on the reasons why.
Importantly they understand markets go up and down periodically but in the long term their portfolios should increase in value. When we started working together, we undertook a thorough due diligence process to understand the investment journey they wished to go on and set up the strategy accordingly.
I provide clients with knowledge and understanding of what we are doing, what can happen, and what is most likely to happen. Essentially, a lot of time is taken at outset to inform and educate them in the solution being proposed, warts and all.
Many of my clients have been working with me for a long time, as a result of which we have been through many of these ‘ups and downs’ before, as well as other life events. They trust my process and advice.
All of this means people don’t tend to worry about their portfolios because they know they are in safe hands. With all the other stresses in life, this is something you cannot put a price on, particularly in retirement.
If you are at all worried about your financial arrangements, please feel free to get in touch for an impartial review.
By Matthew Green
This article is published on: 17th April 2026
For many Americans, moving to Spain is about more than a change of scenery – it’s about improving quality of life, reducing living costs, and enjoying a better pace of living. The Non-Lucrative Visa (NLV) offers a clear pathway to residency, but in our experience, the financial planning behind the move is where the real challenges, and opportunities lie.
The NLV allows non-EU citizens to live in Spain without working locally (including remote work), provided they can demonstrate sufficient financial means to support themselves.
2026 Financial Requirements
To qualify, you’ll need to show:
– Main applicant: ~€28,800 per year
– Each dependent: ~€7,200 per year
– Evidence: bank statements, investment accounts, pensions, or passive income (income is generally viewed more favorably than savings alone)
What Qualifies as Income?
Most commonly accepted sources include pensions, Social Security, investment income, and rental income
Beyond the Visa: The Real Financial Challenge
While many focus on meeting the visa requirements, fewer consider what happens next. Once you become a Spanish tax resident, your worldwide income may be taxable in Spain—while you also remain subject to US taxation. Without proper planning, this can lead to unnecessary tax exposure and complexity.
Common Mistakes We See
– Relying solely on US-based advice
– Holding non-compliant investments (such as PFICs)
– Overlooking Spanish wealth tax
– Structuring income inefficiently
– Ignoring currency considerations
How to Prepare
The most effective strategies we see clients implement before moving include:
– Restructuring investment portfolios
– Planning the timing of income and withdrawals
– Reviewing exposure to Spanish taxation
Ideally, this planning should begin 6–12 months before your move.
There has been a noticeable shift toward individuals relying on online sources and AI-generated guidance for financial decisions. While accessible, this information is often generic and not tailored to individual circumstances—particularly when dealing with complex cross-border tax rules between the US and Spain.
We have seen cases where individuals, acting on incomplete or misinterpreted information, faced unexpected tax liabilities or held unsuitable investment structures. Regulated financial advice is different. It is personalized (with a “z”) to your specific situation, compliant with regulatory standards, and comes with accountability—ensuring recommendations are suitable and aligned with your long-term objectives.
If you are considering a move to Spain, the earlier you plan, the better your financial outcome is likely to be.
We work with US clients relocating to Spain to help structure their wealth efficiently, avoid common pitfalls, and navigate both US and Spanish tax systems with confidence.
If you would like a personalized review of your situation or to discuss your plans in more detail, feel free to get in touch for an initial consultation.
Meeting the visa requirements is straightforward—but getting your financial planning right is what ultimately protects and enhances your wealth over the long term.
By Craig Welsh
This article is published on: 16th April 2026
The final round of the Spectrum Nations Cup brought the competition to a thrilling conclusion, with momentum swings and decisive performances shaping another dramatic finish.
Entering Sunday with a 1.5-point lead, the Rest of the World team looked well placed to secure the title. However, Great Britain & Ireland refused to play a supporting role. Producing their strongest performance of the tournament, GB & I stormed to an emphatic 5–1 victory, dismantling RoW’s advantage and reopening the race at the top.
While GB & I disrupted the standings, Scandinavia & Nordics showed the composure expected of defending champions. Facing a determined Malta side, they secured the result they needed, drawing 3-3. It proved decisive. In a competition defined by fine margins, a half-point made all the difference.
Finishing just half a point clear at the top of the standings, Scandinavia & Nordics retained the Nations Cup title, underlining their resilience and ability to deliver under pressure.
The Spectrum IFA Group once again proudly supported the tournament, with Craig Welsh & Jozef Spiteri present throughout the event. Their continued backing helps sustain a competition built on quality, sportsmanship, and drama.
The trophy remains with Scandinavia & Nordics — see you next year for more drama!
The Nations Cup is organised by the Royal Malta Golf Club
By Chris Burke
This article is published on: 15th April 2026
If you’re investing in Spain, how your withdrawals are taxed can make a huge difference to how much you actually keep. Even when everything else stays the same – the investment, the growth, and the withdrawals – the final outcome after tax can vary significantly.
This sets the foundation for comparing how different tax treatments affect your income.
There are TWO main ways your investment could be taxed in Spain:
Tax: €4,080
Net income: €15,920
Each withdrawal is proportionally split between:
• Return of capital (tax-free)
• Gain (taxed only on the profit proportionally against the original capital invested)
Example (Year 1):
• €200,000 ÷ €415,786 × €20,000
• €9,620 tax-free
• €10,380 taxed
Tax to pay:
• €6,000 @ 19%
• €4,380 @ 21%
Total tax €2,060
Net income: €17,940 per year
Over time, these differences compound – lets look at how the two approaches compare over 15 years:
| Regular Investment | Spanish-Compliant | |
| Net per year | €15,920 | €17,940 |
| Total received | €238,800 | €269,100 |
| Total tax paid | €61,200 | €30,900 |
As you can see, the impact is substantial. The structure alone can lead to around €32,000 in tax savings and more than €2,000 extra income per year.
This outcome is not due to higher returns, but rather a more efficient tax structure. The key principles are:
-The taxable portion decreases
-The tax paid decreases
-Your net income increases
Naturally, the larger the investment, the greater the potential benefit. For example, with a €400,000 investment using the same parameters of a 5% return per year:
After 15 years, withdrawing €30,000 per year:
| Regular Investment | Spanish-Compliant | |
| Net per year | €23,820 | €26,851 |
| Total received | €357,300 | €402,765 |
| Total tax paid | €92,700 | €47,235 |
With a larger portfolio, the savings become even more pronounced – around €45,465 in tax saved and over €3,000 additional income per year.
At this point, an important takeaway becomes clear. Most investors focus on returns, but in Spain, the tax structure can be just as important in determining your final outcome.
In summary, by using a Spanish-compliant structure, you can significantly improve your financial results. This approach allows you to:
There are also other potential benefits such as mitigating tax for inheritance planning and passing on gains/wealth to children.
I’m here to help you get organised and take those financial worries away.
If you’d like to discuss any of these topics in more detail or arrange an initial consultation to explore your situation, you can do so [here].
You can also [read independent reviews of my advice and service here].
By Andrew Lawford
This article is published on: 14th April 2026
Many of you will recall that in 2019 Italy introduced a preferential tax regime for pensioners taking up residency in certain areas of Southern Italy.
Over the years there have been a few tweaks made to the rules, but these have generally had the effect of making it more accessible (unlike what has happened to some other tax regimes available for new residents).
Recently, a further change has been made to the regime by raising the population ceiling for eligible municipalities from 20,000 to 30,000 inhabitants, thereby opening up a broader range of towns across the eligible regions of Southern Italy.
Qualifying individuals pay a flat 7% substitute tax on all foreign-source income, in place of ordinary progressive IRPEF rates. They are also exempt from the IVIE and IVAFE wealth taxes on foreign assets and are relieved of the foreign asset monitoring obligations that would otherwise apply in the RW schedule of their Italian tax return.
The core requirements remain unchanged. The applicant must hold a pension paid by a foreign entity, must have been tax resident outside Italy for at least five consecutive tax years prior to the year in which the option takes effect, and must be moving from a country with which Italy has an administrative cooperation agreement in place. The regime covers only income considered to be produced abroad.
Geographically, the transfer must be to a municipality in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia, or to certain municipalities affected by the 2009 or 2016 earthquakes. The population of the chosen municipality — assessed using ISTAT figures as at 1 January of the year before the option first applies — must not exceed the new 30,000 threshold.
Sound like it might be of interest to you? Feel free to get in touch for an initial consultation.
By Gareth Horsfall
This article is published on: 8th April 2026
Living in a foreign country is never easy, but have you thought how complicated it would be for your family if you die suddenly?
(Apologies for the subject matter around Easter, but if you are anything like me, I like to try and organise my annual tax paperwork for the commercialista around this time and so it is also a good moment to think about putting parts of your financial paperwork in order)
This article is one which I prepared years ago and have been sending out infrequently because on my travels and in the conversations I have, it is ever apparent that most people do not have all their financial paperwork in order in case anything happens to them.
Ensuring that your papers are in order in the event of your sudden death is incredibly important when living in another country. It will provide you with peace of mind that your loved ones will not have too much difficulty in administering your estate, and your family will be thankful that you did it for them.
The big problem is that we often have documents spread across multiple locations: the office, a house in another country, with family members and in that old box that no-one dares look in.
The purpose of this article is to outline a proven way of organizing your affairs to reduce stress on the family in the event of your death.
It is a single file (digital or physical) where you keep all of your important personal and financial information together. It allows easy access to these documents in the event that you are no longer around to deal with these things. It is really important to have it in place where one family member takes the lead on the family finances (as I do in our household). That includes paying bills, managing accounts and storing documents.
Well, I think it is worth the effort. I did mine a while ago and it gives me peace of mind more than anything else. I also told a few people about its location and left a note of who my wife should contact in the event of my death.. A time of loss can be stressful enough without having to try and piece the financial affairs together.
Preparing ‘THE’ folder is much more than avoiding stress as well. If you leave behind an administrative nightmare you could also delay access to the inheritors’ funds and potentially cost a small fortune in legal fees.
To give you an example of this, the UK Department of Work and Pensions estimate that there is currently more than £400 million sitting in unclaimed pension pots in the UK.
Approximately 1 in 7 Americans are estimated to have unclaimed property, such as forgotten bank accounts, insurance proceeds, or unclaimed inheritances
This comes down to personal preference. It can be done by either creating an electronic file that survivors can access in the event of death. This file can then be stored on your main computer, in the cloud or on an external hard drive. Alternatively you can use a physical folder to keep all of the important information together.
For what it’s worth, I decided to do both when building mine because my wife prefers paper and so is happier with hard copies of everything. I prefer digital. I have also shared the digital folder with some trusted family members.
Birth, marriage and divorce
You can download free copies of your Italian documents, and copies with the ‘bollo’ (for €16) from the Italian national register website, here: https://www.anagrafenazionale.interno.it/ You will need to access it with your SPID or CIE.
Gifts which have been made many years ago can be hard to track down and so it’s important that when you make a gift to a family member or anyone else, that you keep a copy of the bank statement showing the amount paid, on what date and to whom.
If you made a larger gift, in Italy, then it will likely have been made through a notaio and so paperwork should be available. Keep these documents safe.
(so they can be maintained if necessary or cancelled if not. Essentially list the fixed costs which would need to continue after death)
Firstly, it is sensible to note the date that it was last reviewed so that anyone using it has an idea of how up-to-date the details are.
Going forward, reviewing the file on an annual basis should be sufficient.
I think it’s safe to say that this is the most problematic part of the whole process because we have so many passwords nowadays and need to change them all the time.
f you are not comfortable keeping these in your hard copy folder, consider using a password management program. A password manager allows you to save all account usernames and passwords in one place. They are then protected using one master key. There are a number of them available. Don’t forget to leave note of how to access the password manager though!
This may, however, be a step too far for you given the data breaches that seem to happen often and I appreciate that and if you are not comfortable in using such an app then its important to have a physical record some where that can be accessed in the event of your death.
This may seem like common sense but our lives now revolve around our phones and so ensuring that you leave details of not just your password to access the phone / PIN or line drawing shape, but also the PIN or access codes when the phone has been switched off AND your PUK code in the event that they get blocked out. If you use fingerprint authentication then you may also want to ensure that you leave open another access possibility, such as the PIN so that the phone can be opened without the need for your fingerprint, when that is no longer possible.
As per the above, do the same for your computer.
It’s probably worth a note about your SPID (Sistema Pubblico di identità digitale) and / or your CIE ( carta d’identità abilitata). These are digital identities accessed via apps and are now arguably some of the most important phone apps to access important financial and legal information held by the Italian state and therefore ensuring that you leave details of your passwords to access the apps could help your beneficiaries resolve estate issues without needing to engage or financial professionals to communicate with the various agencies on your behalf and at great cost.
Lastly, be sure to tell someone about it. There is little point going to the effort of creating such a folder if no one knows of its existence / where to find it.
By Katriona Murray-Platon
This article is published on: 4th April 2026
March has been a rather long and hectic month not just in terms of workload but also due to the ongoing geo-political situation. Since the joint US and Israeli strikes on Iran on 28th February, we have faced soaring oil prices and persistent market volatility. With no clear exit strategy, investors remain nervous.
The investment landscape has changed significantly. One fund manager recently shared that while his career began with decisions based on technical data and analysis, he now finds himself monitoring Truth Social for indications of policy direction. The traditional “quiet weekend” has been replaced by the risk of late-night social media updates from the US President that can pivot global markets come Monday morning.
Despite a consensus that Iran needs to de-escalate to alleviate the economic pain felt by its regime and populace, and that US troops on the ground would be highly risky with no guarantee of success, both sides continue to match each other’s threats. Just last night President Trump seemed to suggest that the war would continue for another couple of weeks.
Oil and gas price rises have continued to rise over the past few weeks. Brent crude oil was 63.3% higher for the month, the largest monthly percentage rise on record over recent decades.
The markets remain understandably pre-occupied by the Middle Eastern conflict, and specifically the impact on energy prices. This could also affect inflation expectations leading to central banks possibly raising interest rates.
Turning to France, tax season will soon begin as the online tax declarations will commence from 9th April. If you want to make a start on your tax return, now is the time to ensure that all the papers and information are ready to be entered into the declaration.
The MaPrimeRenov website is now back up and running (since 23rd February). Lower income households can obtain financial help for just one type of improvement, but other households will have to plan to do several renovations. A back log has built up due to the site closure, so expect delays. There is also a new requirement that you must speak to a MaPrimeRenov adviser before the work begins.
You can now choose whether you would prefer that your investment income be taxed at the flat tax rate or at your marginal rate. Previously by ticking the box 2OP on the tax declaration, your interest, dividends and capital gains would be subject to your marginal rate and not the flat tax of 31.4%. This choice was irreversible even if the taxpayer later realised that it was not beneficial. As from next year, taxpayers will be able to change this option. However, for income received in 2025 and declared in 2026 this does not apply.
The thresholds for micro-entreprises will increase for income earned in 2026, 2027 and 2028 to €203,100 for Micro-BICS for sales of goods and holiday rentals and to €83,600 for other micro-BICs (furnished rentals, services and arts) and for micro-BNC businesses. However, the threshold remains at €15,000 for “meublé de tourisme non classé”.
After a strong start to 2026, gold’s “safe haven” status is being called into question. Traditionally seen as a less volatile asset class that can hold its value in times of crisis, hedging against equity market falls, since the conflict escalated in March, gold prices have fallen steadily. In France, there are two types of tax on gold, either a 11.5% on the sale price or at 36.2% on the gain with tapered relief based on the duration of ownership and full exemption after 22 years.
After the Easter weekend I will be back at work but then will take the second week of the school holidays to spend time with family. If you have any questions about your finances or taxes in France, please do get in touch to arrange a free, no obligation, phone call or meeting.
