Italy now attractive for wealthy foreigners:
flat tax EUR 100.000
As one of the most beautiful countries in the world for nature, culture and food, Italy becomes now (from March 8th, 2017) even fiscally attractive for wealthy foreigners.
Italy has introduces a Flat Tax in a bid to compete with similar incentives offered in other Countries (Britain, Spain, Switzerland), which have successfully attracted numerous high net worth individuals. Due to Brexit and to the changes taking place in the Swiss forfeit rules taxation Regime for individuals, which may cause an outflow of capital from UK and Switzerland, Italy aims to collect some of that cash outflow that will change the balance of wealth in Europe.
How does the Italian Flat Tax work:
Wealthy foreigners and Italians living abroad for at least nine years who decide to transfer their residence to Italy may take advantage of the interesting Flat rate Tax of € 100.000/year which will apply to all their worldwide income.
The flat tax system will be available to all individuals, regardless of the nationality or domicile, and has a term of 15 years. It can be extended to family members at a cost of € 25’000/year per member.
The Flat Tax Regime cannot be extended to Italian-source income and gains, which will be taxed in the usual way.
FLD specialized in international taxation and immigration law, provides tailored advice to individuals interested in establishing their residence in Italy.