This is the New Baron Karza, released in 1983 by Gig in Italy. He is based on and, in fact, licensed from Hourtoy's Inter-Changeables line, which makes him the equivalent to that line's count Magno.
In fact, the box art and construction are almost identical to Count Magno. This Baron Karza, however, is different from all other Baron Karzas and Count Magnos in one important way.
Despite the gray and red color scheme shown on the box, the Count Magno contained therein is actually a silverish gray color with dark candy apple blue detailing! Yup, that's right! Candy Apple Blue! For those unfamiliar with that term, the color is basically an almost metallic dark blue color, as if it had flecks of silver in it. The combination of the silverish gray body with dark blue detailing makes for a truly unique toy. In comparison, this is probably the coolest color combination that we have ever seen on a magnetic, far outshining the almost gaudy Emperor. Even more wickedly evil than King Atlas' blood red tones!
As was the case with Count Magno, the fists are actually the same silverish gray as the body instead of a separate color. A truly beautiful piece.