In Sardinia, the Guardia di Finanza discovered 100 foreign yachts that had not been declared to the Italian tax authorities.
Guardia di Finanza (Italian Finance Police) operations in Sardinian ports: vessels flying foreign flags but traceable to Italian-resident owners are under observation. Their total value exceeds €48 million.
The issue of "flagging out" is back in the spotlight in Italian yachting. The Guardia di Finanza (Financial Police) in Cagliari has concluded Operation "Red Jack," a sweep that involved several Sardinian ports and led to the identification of 100 vessels flying foreign flags, but belonging to individuals tax resident in Italy and not declared in the RW section of the tax return.
The investigation began in 2025 with an inspection at sea and was subsequently extended to include checks at the island's marinas. At the heart of the investigation is the phenomenon of flagging out, a widespread practice in the nautical sector that involves registering yachts and pleasure craft in foreign registries. This practice may be related to operational, insurance, or management reasons, but in some cases it is also used to avoid compliance with tax monitoring requirements under Italian law.
According to the investigations, the identified vessels were formally registered abroad, despite being owned by Italian residents. Regulations require that registered movable property held outside of Italy be reported in the RW section. Failure to do so results in penalties proportionate to the value of the property. The investigation was coordinated by the Cagliari Naval Station and involved various Guardia di Finanza units across Italy to reconstruct the owners' tax positions. The investigations were conducted through direct inspections at ports and cross-referencing data contained in tax and asset databases.
According to investigators' estimates, the total value of the vessels exceeds €48 million, while the administrative fines could reach approximately €23 million. The operation confirms how monitoring international recreational boating is becoming increasingly crucial in Italy, especially in areas like Sardinia, where a significant portion of the Mediterranean fleet of large yachts gathers during the summer season. For the nautical industry, the issue of the correct use of foreign flags remains one of the most sensitive issues in the relationship between international competitiveness, taxation, and transparency.
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