An investigative report from October 2026 reveals that an estimated 40,000–60,000 Italian motorists have registered vehicles in Poland through shell companies to avoid Italy’s annual circulation tax (bollo auto) and higher insurance premiums. The scheme exploits EU freedom of establishment rules: an Italian resident incorporates a Polish LLC (sp. z o.o.) for €1,200, registers the car in Warsaw, and pays Polish rates (€50–100/year vs. €300–800 in Italy). Italy’s Ministry of Economy and Finance estimates annual revenue loss at €85–120 million. A draft decree, expected to take effect 1 January 2027, will require proof of genuine Polish residency or business activity for foreign-registered vehicles kept in Italy >6 months/year, with fines up to €3,000 and vehicle seizure.
Key Takeaways
- Mass-Scale Arbitrage: Tens of thousands of vehicles operate under Polish plates despite being garaged and driven exclusively in Italy.
- Legislative Response Imminent: Italy’s 2027 Budget Law includes anti-abuse provisions targeting “letterbox companies” used for vehicle registration.
- EU Law Tension: The measure must comply with ECJ precedent (e.g., Case C-231/18) on freedom of establishment, risking infringement proceedings if deemed disproportionate.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement