Luxembourg Life Insurance advantages for Italian Residents

  • No taxation on payments is due
  • No taxation on unrealised capital gains and if no redemption is made
  • Possibility of guaranteeing the contract
  • Possible losses on one vehicle are offset against gains on others in the event of total or partial redemption, with no time limit
  • Income received as a result of redemption is taxed at 26% (12.5% for government bonds), regardless of the nature of the investment. Therefore, there are no cases of taxation at marginal IRPEF rates, as in the case of direct investment in non-harmonized investment funds.
  • A way of passing on assets:
    • Free designation of the beneficiary or beneficiaries at any time.
    • The passing on assets is simplified and secured thanks to the beneficiary clause.
    • Estate planning is effective through the nominative designation of beneficiaries.
    • No inheritance tax is payable by the beneficiary of the contract in the event of death: life insurance does not enter the estate and as such does not consume the €1 million allowance.2
    • In the event of death, the transfer of capital to the beneficiary or beneficiaries is fast compared with the time required for the transfer of assets in ordinary estates.
  • SOGELIFE is not a Sostituto d’Imposta (withholding agent), which means that policyholders may choose the most appropriate ownership scheme

For natural persons:

  • If a life insurance policy is held via a financial intermediary operating in Italy, reporting and tax payment obligations are delegated to the intermediary.
  • If a life insurance policy is held directly by the natural person, reporting obligations are simplified by including the policy on the RW form and in the annual wealth tax on financial assets (IVAFE) payment (0.20% of the policy’s value at 31/12).
  •  SOGELIFE is not subject to the mathematical reserve tax of 0.6 percent (0.5 percent from 2024); therefore, it does not levy it on the policyholder

For legal entities:

  • SOGELIFE does not deduct 0.20 % stamp duty on the Unit-Linked portion of the policy, which is therefore not due.
Our offer for legal entities 

Accounting and administrative simplification: in the event of subscription of a life insurance by a legal entity, the value of the contract is simply reported in the annual accounts at fair market value or on a nominal basis depending on the accounting rules applied. Outside a life insurance policy, the legal entity is obliged to register each transaction on a daily basis.