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The short answer
IVAFE is charged at 0.2% of the value of foreign financial assets, but current accounts pay a fixed €34.20 a year instead, and nothing at all if the average annual balance across your accounts with the same bank is €5,000 or less. Assets in listed tax-haven states pay 0.4% from 2024. Even when no IVAFE is due, the account must still be reported in quadro RW.
IVAFE, the "imposta sul valore delle attività finanziarie detenute all'estero", is the Italian tax on financial assets held abroad. It was introduced by article 19 of decree-law 201/2011 and has applied since 2012. For a Nigerian in Italy with a naira salary account, a domiciliary account and perhaps some shares, the rules give very different results for each.
The three rules that decide most cases
| Asset | IVAFE | Note |
|---|---|---|
| Current account | €34.20 a year (individuals) | Nothing due if average balance with that intermediary is €5,000 or less |
| Other financial assets (shares, bonds, funds, many deposits) | 0.2% of market value | Basis varies by instrument |
| Assets in listed tax-haven states | 0.4% | Higher rate in force from tax year 2024 |
These figures come from Money.it's IVAFE guide of 1 April 2026. Whether Nigeria is on Italy's list of tax-haven states is something to confirm with your adviser rather than assume either way.
The €5,000 threshold: per bank, not per account
The threshold is measured on the average annual balance (giacenza media) across all current accounts you hold with the same intermediary, not account by account. So a naira account and a dollar domiciliary account at the same Nigerian bank are added together. Two accounts at two different banks are tested separately.
Worked examples (illustrative exchange rates)
- One naira current account. Average balance ₦6,000,000. At an example ₦1,700 to €1 that is about €3,529, below €5,000: no IVAFE. It still goes in quadro RW.
- Two accounts, same bank. Naira account averaging €3,000 equivalent plus a dollar domiciliary account averaging €4,000 equivalent: combined €7,000, above €5,000. If both are current accounts, IVAFE is the fixed €34.20.
- Two accounts, different banks. The same €3,000 and €4,000, but at different banks: each is below €5,000, so no IVAFE on either.
- Shares through a Nigerian broker. A portfolio worth €10,000 equivalent at the valuation date: 0.2% gives €20.
For holdings that started or ended during the year, or that you own jointly, ask how the RW instructions apportion the tax; the guide we used does not cover those cases.
Credit for wealth taxes paid abroad
Wealth taxes already paid abroad on the same asset can be deducted, but the credit cannot exceed the Italian IVAFE. Nigeria does not have a general tax on bank balances in the sources we read, so in most cases there is nothing to deduct. Do not confuse withholding tax on interest with a wealth tax: interest is dealt with separately, as we explain in declaring naira fixed deposit interest.
Paying IVAFE
IVAFE follows the IRPEF payment calendar, with a balance and advances. The June advance is 100% of the amount shown in RW for the previous year. The F24 codes are:
- 4043
- IVAFE balance (saldo)
- 4047
- First advance
- 4048
- Second advance or single advance
Exchange rates and values
The IVAFE base is market value in euros, which for a naira account depends heavily on the exchange rate used. Ask your commercialista which rate applies; the guide we read refers to the TUIR exchange-rate rules without spelling them out. A weaker naira lowers the euro value of a naira balance, which can bring an account under the €5,000 threshold even if the naira balance rose.
Mistakes that change the answer
- Testing each account separately. Current accounts at the same bank are added together for the €5,000 test.
- Using the year-end balance for the threshold. The test uses the average balance over the year, not the figure on 31 December.
- Treating every product as a current account. The fixed €34.20 is for current accounts; shares, funds and many deposits pay 0.2% of value instead.
- Leaving zero-tax items out of RW. An account below the threshold owes no IVAFE but still needs reporting.
- Forgetting the advance. Because the June advance is 100% of the previous year's RW amount, a first year of IVAFE can mean paying the balance and the next year's advance together.
What to check first
- List every Nigerian account and investment, grouped by bank or broker.
- Get average balances for current accounts from statements, and year-end values for everything else.
- Convert to euros at the rate your adviser confirms.
- Apply the rules above, then fill quadro RW for every item, including those with no tax.
Forgot an earlier year? Read Quadro RW penalties and ravvedimento. For the overall picture, see IVAFE on Nigerian bank accounts. This is information, not tax advice.
Where Pryme fits
If you keep naira, euros and dollars in one place, a single statement makes this exercise easier. A Pryme multicurrency account shows each currency balance, and you can generate statements, including verifiable ones through VerifyDoc.ai, for your adviser (receipts and statements). Ask your commercialista how a multicurrency account held through Pryme should be reported.
Questions people ask
What is the IVAFE rate on foreign bank accounts?
Current accounts pay a fixed €34.20 a year; other financial assets pay 0.2% of value, or 0.4% in listed tax-haven states from 2024.
Do I pay IVAFE on a small Nigerian account?
No IVAFE is due if the average annual balance across your current accounts at the same bank is €5,000 or less, but the account still goes in quadro RW.
Is the €5,000 IVAFE threshold per account?
No. Money.it's 2026 guide says it is measured across all accounts with the same intermediary.
What is the F24 code for IVAFE?
4043 for the balance, 4047 for the first advance and 4048 for the second or single advance.
Sources
- Money.it: IVAFE 2026, imposta sulle attività finanziarie estere (1 Apr 2026) · accessed Oct 2026
- Fiscoinvestimenti: Quadro RW, sanzioni e ravvedimento 2026 (updated 17 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.