ISP (Individual Savings Plans)

February 7th, 2018 Posted by Uncategorized 0 thoughts on “ISP (Individual Savings Plans)”

The 2016 Stability Law introduced the ISPs, namely, investment plans that, following certain rules provided for by the law, allow for complete tax relief (capital gains, dividends, succession and donation).

The main objective is to catalyze investor savings towards small and medium Italian companies. ISPs already exist abroad, especially in Great Britain and France. Sector growth estimates are expected to reach 18 billion by 2021. According to the result analysis concerning the collection of these first months, the estimate could be conservative.

What are the rules to comply with?

– Limited to natural persons;
– Each person can own at most one IRP.
– Maximum annual and total investment limits.
– Investment focus (bond or equity) on Italian companies;
– 21% of the total must necessarily be in Italian Small and Mid Cap (stock exchange index).
– Compliance with the rules for at least 5 years.
– An allocation change must be made over a period of 90 days.

What are the current problems?

ISPs are “packages” in which to insert tools suitable to comply with constraints. In theory, they cannot be funds. In practice, there are still considerable difficulties in opening a separate securities account that allows you taking advantage of benefits. At the moment, the only possibility permitted to leverage benefits is to purchase an ISP-compliant mutual fund. Banks do not allow the purchase (with enjoyment of tax benefits) of all ISP funds in circulation.

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