Contents
Who must report
Individuals who are Italian tax residents during the year must report their foreign-held assets for monitoring purposes, even if no income is produced. Form RW belongs to the annual income-tax return (for employees it can also be handled via the 730 “Quadro W”). If you moved mid-year, reporting usually applies from the first day you became resident; if in doubt, get a case-by-case check.
Two frequent misconceptions: (1) an asset being taxed abroad doesn’t exempt it from Italian monitoring; (2) using an EU/EEA fintech or a “multi-currency” account still counts as a foreign asset if the account is formally held outside Italy.
What you must include
Think broadly: if it’s an account, instrument, policy or property held outside Italy, it likely belongs in RW. Typical expat items include:
- Bank/payment accounts and e-money (e.g., foreign bank IBANs, multi-currency apps like Wise/Revolut if the account is abroad, PayPal balances tied to non-Italian entities); custody/dossier with stocks, bonds, ETFs, funds.
- Brokerage platforms (e.g., IBKR, DEGIRO) and financial policies issued by non-Italian companies; crypto-assets held on foreign exchanges or self-custody; real estate abroad (owned directly or via certain vehicles).
Items held through Italian intermediaries follow different rules (often monitored by the intermediary itself). Trusts, foundations, joint ownership and powers of disposal require special attention—flag them to your advisor early.
RW vs IVAFE vs IVIE at a glance
| Item | Purpose | What it covers | Tax base & rate (general) |
|---|---|---|---|
| Form RW | Monitoring (reporting) | Foreign accounts, investments, policies, crypto, real estate | No tax by itself; it’s a disclosure that also computes any IVAFE/IVIE due |
| IVAFE | Wealth tax on financial assets abroad | Deposits, custody accounts, portfolios, many financial products | Generally a percentage of asset value; special rules for bank accounts; higher rate may apply to assets in certain non-cooperative jurisdictions |
| IVIE | Wealth tax on real estate abroad | Houses, apartments, land located outside Italy | Percentage of property value determined by law; pro-rated for ownership period and quota |
Notes. Rates, thresholds and “black-list” rules are subject to change, and municipalities/States abroad often have their own valuation standards. Always check the current year’s instructions and whether a tax treaty or foreign levy grants a credit in Italy.
Common expat scenarios (and how they’re handled)
Multi-currency app + foreign IBAN. If your Wise/Revolut account is formally held with a non-Italian institution, it is usually a foreign financial asset: report it in RW and assess any IVAFE due. Keep annual statements and official balance certificates for the whole year.
Foreign broker from pre-Italy days. Many expats keep their IBKR/DEGIRO account after moving. That portfolio is typically reportable in RW; market value is used for the IVAFE computation. Dividends/capital gains are also taxable in Italy (net of treaty relief) and belong in the income sections of the return.
Crypto on exchanges or self-custody. Crypto-assets held with non-Italian platforms, or in self-custody, are generally monitored via RW. Be ready to provide acquisition cost, historical wallets/exchange reports, and end-of-year balances. Special events (forks, airdrops, staking) may have separate income/tax treatment—document everything.
House abroad, rented or vacant. Foreign real estate is monitored in RW and subject to IVIE. The taxable value depends on the property’s jurisdiction and the Italian rules for converting it to an IVIE base. If you pay a property wealth tax abroad, you may be entitled to a foreign-tax credit against IVIE (case-specific).
Accounts held via an Italian bank or fiduciaria. If assets are effectively administered by an Italian intermediary, the monitoring rules may differ (the intermediary can apply domestic withholding and handle reporting). Ask your bank for a written statement of how they will treat your positions.
How to get it right (and avoid penalties)
Start early and treat RW as a documentation exercise. Your advisor will need consistent data across assets, currencies and time periods. Prepare a single folder with year-end balances, statements for the full year, and any tax vouchers issued abroad. If this is your first Italian return, also include your arrival date and proof of residency registration.
- For accounts/brokers: year-end statements, average balances if relevant, official valuation of securities at year-end, transaction history for dividends/gains.
- For real estate/crypto: title/valuation and local tax paid (property), cost basis and end-of-year balances (crypto), wallet/exchange reports and a chain of ownership that matches your IDs.
If you missed a prior year, Italy allows voluntary correction with reduced fines when you fix it before an audit (ravvedimento). Do not guess: a short review with a specialist is cheaper than back-calculating years of assets across multiple countries.
Where the rules live (official)
For the exact definitions, rates and filing mechanics, consult the Italian Revenue Agency’s official pages for IVAFE and IVIE. Each year’s return instructions also detail how to complete RW (or the 730 “Quadro W”) and what values to use. If your structure is complex (trusts, foreign partnerships, mixed custody), have a professional map it—and keep all year-end statements in one place.
