Will Italy Persist to Keep its Money in Switzerland?

• 02.26.2015, 17:00
•  Europe,  World

On Monday an agreement was signed between Italy and Switzerland to share tax information, Bloomberg reports. It enables Italy to come clean on undeclared Swiss funds while keeping here money in the same place. Italian undeclared assets are estimated at about 160 billion euro while there is no official data about the hidden money in Swiss banking system.

According to Schlichting estimation Italian clients will have to pay from 7 to 12 per cent of their assets in taxes and also penalties if the accounts are voluntarily disclosed for the authorities. For Switzerland the amount of the penalty will be 40 percent of the same cost if they do not reach an agreement.

Despite the offered conditions, Italian clients preferred to keep their money in the same place, because there is lack of trust towards the administration in Italy. On the other hand Switzerland is the world’s largest center for offshore fund, managing about 2.3 trillion dollar for non residents.