Did you know that Italy has just launched a new tax for 2017, called Flat Tax?
In recent years, because of the economic downturn many people have experienced financial distress. That is why the Italian government introduced a number of changes to lighten tax burden on property in Italy. But now it’s the turn for wealthy people.
Ultra-rich international investors will be happy to know that if they declare to be resident for tax purposes in Italy – this means actually living in the peninsula for more than 183 days – they will be entitled to pay a fixed tax rate of € 100,000 on their worldwide income regardless of how high their income is.
In case you want to set up residency also for your family members, you will pay an additional €25,000 per person.
What is more, Italy’s flat tax will be renewable every year by tacit agreement for a maximum of 15 years.
Who can take advantage of Italy’s new Flat Tax and how can you do it?
People who have resided abroad for nine years during the last 10 can benefit from it. And it will be very easy. You just need to tick the correct box when you fill out your Individual Income tax return (Dichiarazione dei Redditi).
But if you aren’t sure whether you are entitled to benefit from it or not, you can go to find out about your situation at the Revenue Agency office (Agenzia delle Entrate). You can also make a request via email or registered letter.
This will be very interesting for overseas investors with large assets or income. But also for those with big earnings who have large families as the taxpayer’s family members will also benefit from this tax relief.
According to some recent surveys this measure could attract around a thousand high net worth individuals which will make Italy a competitor with other countries, such as Spain and UK, which have recently introduced similar incentives.
So, what will be your preferred destination now: Italy, Spain or Britain?