The tax position of the Roman Catholic Church in Italy is under scrutiny by the European Commission. Considerable tax breaks on buildings and income that Italy allows the Catholic Church may be in breach of EU regulations banning state aid to business.

The Roman Catholic Church in Italy is exempt from local property taxes (ICI), as well as corporate tax (IRES) on income from schools, clinics, hospitals, hotels and hostels. However the Church does not receive any preferential treatment that is not also available to other religious and charitable organizations providing health and educational facilities for the general social welfare of the country.

While the income from educational and health services seems to offer a case for exemption, that from more commercial