The BBC said the Court of Cassation ruled in her favor Thursday.
The 79-year-old actress had been accused of underpaying her taxes by 10 percent nearly four decades ago. The exact amount the government said she owed was not reported.
"A saga that has lasted nearly 40 years is finally over," Loren said in a report in the La Stampa daily newspaper. "I always look to the future and I leave bad experiences like this one behind me."