Outside license plates, tight on controls: recycling and bypassing in the sights

Italian authorities have intensified controls on vehicles registered abroad operating within the country, targeting practices linked to tax evasion, insurance fraud, and potential money laundering. The move follows a response from Minister of Infrastructure and Transport Matteo Salvini to an inquiry raised in the Senate by the far-right party Fratelli d’Italia. The inquiry was led by Senator Sergio Rastrelli and supported by associations including “Carlo La Catena,” which represents victims of duty-related crimes. The focus has been on Naples and its province, where the phenomenon appears particularly pronounced. According to data cited in the Senate inquiry, nearly 53,000 foreign-registered vehicles were circulating in Italy in 2025, with more than two-thirds, approximately 35,000, located in Naples. These vehicles include luxury cars, SUVs, and scooters, many bearing Polish or Bulgarian license plates. The practice of using foreign registration to avoid local regulations has become a growing concern, especially in the southern regions, where disparities in insurance costs and administrative procedures create opportunities for exploitation. The inquiry highlighted how individuals can legally acquire foreign-registered vehicles through fictitious power of attorney, allowing them to operate vehicles formally owned by others. This method enables users to evade traffic fines, avoid paying vehicle taxes, skip mandatory inspections, and bypass higher insurance premiums prevalent in certain areas. In Naples, for example, the annual cost of insuring a scooter can be up to five times higher than in other parts of the country. The financial implications of this trend extend beyond individual savings. The state faces substantial losses in value-added tax (VAT) revenue from vehicle purchases, along with missed collections from registration fees, municipal and regional taxes, and annual ownership levies. Additionally, insurance companies suffer reduced income from lower premium payments, further impacting public finances. Senator Rastrelli and his colleague, Senator Balboni, emphasized concerns over the potential role of organized crime in facilitating these activities. They noted that the current regulatory framework lacks uniformity and adequate oversight, creating loopholes that could support opaque economic circuits. Their inquiry called for specific actions from the Ministry of Infrastructure and Transport, the Ministry of Industry, and the Interior Ministry to address the issue within their respective jurisdictions. Authorities have begun implementing stricter checks on vehicles with foreign plates, aiming to identify those used for illicit purposes. Routine inspections have been supplemented with high-impact operations designed to disrupt patterns of abuse. Guidelines issued by transport officials stress the need for thorough verification of insurance obligations and compliance with legal requirements for vehicle operation. The measures reflect broader efforts to close gaps in legislation that allow circumvention of local laws. While the practice of using foreign registration is not inherently illegal, its misuse raises questions about enforcement and transparency. Officials have acknowledged the complexity of the situation, noting that effective solutions require coordinated action across multiple government agencies and possibly international cooperation given the cross-border nature of the issue. As part of the crackdown, law enforcement is focusing on identifying vehicles operated without proper documentation and ensuring adherence to insurance mandates. The goal is to prevent both financial loss to the state and the potential facilitation of criminal activity through unchecked vehicle usage. The increased scrutiny is expected to continue as authorities assess the effectiveness of new protocols and determine whether additional legislative changes are necessary to fully address the challenges posed by the phenomenon.