Isee: Should You Declare the Cash You Keep at Home?

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Understanding ISEE Calculation and Home Savings

The calculation of the ISEE value not only takes into account incomes, but also the net worth, including both movable and immovable assets.
This raises the question: should the cash kept at home be included in the ISEE? What are the risks if it’s omitted?

Italians are known for being savers; however, many, particularly older individuals, lack trust in banks due to frequent reports about forced withdrawals and taxes on savings.
As a result, some choose to keep their savings under the mattress, potentially to hide their wealth and lower their ISEE assessment.

The Risks of Not Reporting Wealth

If you fail to declare the actual wealth of your household in the ISEE, as it may be physically kept at home, legal implications could arise.
It’s crucial to understand the laws regarding asset declaration and what risks are associated with underreporting.

The ISEE indicator has become pivotal for eligibility for bonuses and benefits, making it essential for many to reduce its value for higher benefits, such as the universal allowance, which increases with a lower ISEE.

Cash at Home and ISEE Reporting

Many Italians are withdrawing funds from their bank accounts to prevent these sums from affecting their ISEE.
If you do not have someone trusted to hold the money in bank deposits, the solution often becomes withdrawing cash and keeping it at home.
Amounts withdrawn from bank accounts do not impact the ISEE for two years thereafter.

However, what remains unrecognized is that the Revenue Agency is aware of the financial wealth via shared databases, as bank balances are usually included automatically in the pre-filled ISEE.

What to Include in ISEE

The regulatory framework states that each family member must report their incomes and assets in the DSU (Dichiarazione Sostitutiva Unica), which includes:

• Real estate properties
• Land
• Bank accounts
• Saving books
• Foreign bank accounts
• Stocks
• Government bonds
• Shares in non-listed companies

Interestingly, cash at home does not need to be reported in ISEE since the law does not specify cash holdings, focusing instead on financial products and relationships.

Withdrawal Risks

Those eager to reduce their ISEE might impulsively withdraw all funds.
However, withdrawing over €10,000 in a month triggers anti-money laundering regulations, leading banks to report these transactions.
This could alert the Revenue Agency to investigate your assets.

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