Flat Tax: favorable tax regime for wealthy foreigners
In 2017, the Italian government simplified the procedure for granting tax residence to wealthy foreigners.
The main condition of the new regime is that you transfer your fiscal residence to Italy and pay a fixed tax on all income received abroad (outside Italy). No disclosure of assets is required.
The annual Flat Tax rate is ˆ100 thousand for all profits received outside Italy.
Family members of a foreigner with a separate income [Expand]
– children, spouses, parents, brothers or sisters-can also enjoy preferential tax treatment. The fixed payment for the status of a resident of each of them is an additional ˆ25 thousand.
To obtain resident status, it is usually required to reside in the country for at least 183 days per year. However, the new law reduces the term to three months. The offer can be used by foreigners who have not been tax residents of Italy for the last nine out of ten years.
Terms and benefits of the new tax regime
Capital gains from shares of both foreign and Italian companies (in the first five years) are excluded from the tax regime.
All income from Italian sources is subject to the usual tax rates.
Limited to the tax on inheritance and gift (everywhere).
Taxpayers are exempt from reporting assets abroad in the Italian tax return.
Taxpayers are exempt from paying IVIE (real estate tax abroad) and IVAFE (tax on financial activities or assets located abroad).
Payment is made by submitting an annual return to the Italian tax authorities. The money is transferred in a single payment until the end of June this year. Taxpayers must decide whether they want to join the system immediately after moving or starting from the next year of residence in Italy, and send a request to the tax office (Agenzia delle Entrate).
Each year, the status will be automatically renewed. You can use the preferential tax regime for 15 years.
The offer is particularly attractive for investors whose income outside Italy exceeds ˆ500 thousand. the Preferential tax regime in Italy is close to the British non-dom. However, in the UK, the requirements for candidates have noticeably tightened in 2017, and now Italy is becoming a great alternative to the United Kingdom.
The Italian tax Inspectorate (Agenzia delle Entrate) is already actively accepting applications. High-income individuals who live abroad and want to take advantage of the new single tax can apply on the Agency's website (www.agenziaentrate.gov.it) or with the assistance of local consultants and lawyers. The second option is preferable, since all the necessary forms are still available only in Italian.
The new tax regime has already provoked a noticeable revival in the luxury segment of the real estate market in Italy. Significantly increased demand for the purchase and rental of status objects in Milan (the city is a real boom!) and the provinces, as well as on the Northern lakes, especially Como. The most popular houses and apartments near the international airport and international English-speaking schools.
Flat Tax: favorable tax regime for wealthy foreigners
In 2017, the Italian government simplified the procedure for granting tax residence to wealthy foreigners.
The main condition of the new regime is that you transfer your fiscal residence to Italy and pay a fixed tax on all income received abroad (outside Italy). No disclosure of assets is required.
The annual Flat Tax rate is ˆ100 thousand for all profits received outside Italy.
Family members of a foreigner with a separate income [Expand]
To obtain resident status, it is usually required to reside in the country for at least 183 days per year. However, the new law reduces the term to three months. The offer can be used by foreigners who have not been tax residents of Italy for the last nine out of ten years.
Terms and benefits of the new tax regime
Capital gains from shares of both foreign and Italian companies (in the first five years) are excluded from the tax regime.
All income from Italian sources is subject to the usual tax rates.
Limited to the tax on inheritance and gift (everywhere).
Taxpayers are exempt from reporting assets abroad in the Italian tax return.
Taxpayers are exempt from paying IVIE (real estate tax abroad) and IVAFE (tax on financial activities or assets located abroad).
Payment is made by submitting an annual return to the Italian tax authorities. The money is transferred in a single payment until the end of June this year. Taxpayers must decide whether they want to join the system immediately after moving or starting from the next year of residence in Italy, and send a request to the tax office (Agenzia delle Entrate).
Each year, the status will be automatically renewed. You can use the preferential tax regime for 15 years.
The offer is particularly attractive for investors whose income outside Italy exceeds ˆ500 thousand. the Preferential tax regime in Italy is close to the British non-dom. However, in the UK, the requirements for candidates have noticeably tightened in 2017, and now Italy is becoming a great alternative to the United Kingdom.
The Italian tax Inspectorate (Agenzia delle Entrate) is already actively accepting applications. High-income individuals who live abroad and want to take advantage of the new single tax can apply on the Agency's website (www.agenziaentrate.gov.it) or with the assistance of local consultants and lawyers. The second option is preferable, since all the necessary forms are still available only in Italian.
The new tax regime has already provoked a noticeable revival in the luxury segment of the real estate market in Italy. Significantly increased demand for the purchase and rental of status objects in Milan (the city is a real boom!) and the provinces, as well as on the Northern lakes, especially Como. The most popular houses and apartments near the international airport and international English-speaking schools.
1