The Italian Government recently introduced a flat tax for high-net-worth individuals transferring their tax residence to Italy. According to this new favorable regime, individuals who have been non-tax residents in Italy for at least nine out of the 10 years prior to moving to the country can benefit from a flat tax of 100.000 euro on all income originating abroad. The income generate in Italy, instead will be taxed at normal rate.
As cherry on top, the measure may be extended to include close family members for ONLY 25 000 euro per family member. The only constraint is that this regime will expire in 15 years.
The objective of the measure is to ‘enhance investments in Italy by attracting high-net-worth individuals
Now let's imagine the following scenario:
- a man earning like 10 million euro per year married with a women declaring something like 100 million.
- They are from England and concerning by the brexit they want to move to Italy asking for the resident and this regime (renting or buying a property it is enough).
- This regime will also provide a resident permit for no UE citizens.
- All their assets are outside Italy as well as their income.
So, they should pay ONLY 125.000 euro of tax over 110 million euro which is basically a fiscal pressure of about 0.11% :) crazy right?
Moreover, applying for this regime will exempt them declaring any kind of activity, deposits, bank accounts etc.. outside Italy.
Some more references in details for those who are interested:
https://home.kpmg.com/xx/en/home/insights/2017/06/tnf-italy-flat-tax-for-new-individual-residents-new-guidance.html
Enjoy!
Lazlo