Italy plans mandatory domestic insurance for foreign-registered vehicles to halt tax evasion
A draft reform to the Italian Highway Code will require foreign-plated vehicles driven steadily in Italy to carry insurance from companies authorized to operate domestically.
Draft highway code targets foreign plate evasion
The Italian government has drafted amendments to the Highway Code requiring foreign-registered vehicles used permanently in Italy to hold insurance policies issued by Italian companies or insurers authorized by IVASS. Under the draft text prepared by the Ministry of Infrastructure and Transport and the Ministry of the Interior, vehicles enrolled in the foreign vehicle registry (REVE) must meet Italian insurance requirements to operate on domestic roads. The measure specifically addresses 'esterovestizione,' a scheme where Italian residents register vehicles abroad to bypass domestic motor liability tariffs, local car taxes, and automated traffic penalties. Industry and sector associations have until 13 September 2026 to submit formal observations on the draft provisions before the final legislative procedure begins.
Enforcement crackdown begins in Naples
In response to the concentration of foreign-plated cars, Naples Prefect Michele di Bari ordered targeted police inspections across the city and metropolitan area on 21 August 2026. Figures reported by Corriere della Sera indicate that 35,000 of Italy's estimated 53,000 foreign-registered vehicles circulate in Naples. Local authorities plan to intercept fictitiously registered two- and four-wheeled vehicles, levy statutory monetary fines, and carry out administrative vehicle seizures. The operational measures follow a 13 August circular from the Ministry of the Interior that gave Italian law enforcement direct digital access to Polish government portals, enabling real-time verification of vehicle registration papers, Polish third-party insurance policies, and driving licences.
Mechanics of registration schemes and foreign rentals
The practice of registering vehicles abroad has evolved geographically over recent years, shifting from German, Bulgarian, and Romanian registrations to Polish and Czech plates. Drivers in southern regions, particularly Campania, face some of Italy's highest insurance premiums due to elevated regional claim frequencies. While some motorists use fictitious foreign ownership, others utilize cross-border corporate rental contracts where a foreign company purchases the vehicle, insures it locally, and rents it back to the Italian driver. Although rental vehicles must be registered in the REVE system if operated in Italy for more than 30 days in a year under Article 93-bis of the Highway Code, the proposed draft aims to eliminate financial arbitrage by subjecting all registered vehicles to Italian insurance standards.
Tullio Ferrante, Undersecretary at the Ministry of Infrastructure and Transport, detailed the government's approach to closing these loopholes:
The improper use of cars with foreign license plates is a widespread phenomenon, especially in the South, where cases of fictitious foreign registration to evade required obligations are increasingly numerous. As the MIT, we intend to intervene decisively on this issue, in compliance with international conventions, to ensure a sacrosanct principle. Anyone who uses a foreign-plated vehicle permanently in Italy must be traceable, therefore having Italian insurance coverage or coverage authorized in our country, and register the vehicle or enroll it in REVE, the Register of Foreign Vehicles.
Regulatory framework and next steps
The forthcoming requirements build on previous legislative interventions, starting with the 2018 Security Decree that prohibited Italian residents from operating foreign-registered cars they owned. That framework was amended under Article 93-bis of the Highway Code, which established a three-month residency threshold for ownership bans and created the 30-day REVE registration rule for foreign-owned cars. Under the new draft rules, foreign registration alone will no longer permit the use of foreign domestic policies that lack IVASS authorization. Further operational strategies and inspection schedules for the Naples region will be reviewed during an upcoming session of the Provincial Committee for Public Order and Security.
