Ever thought about Moving to Italy? The New Flat Tax Makes it more Attractive than Ever
At the start 2017, the Italian government introduced a new flat rate tax to attract high net worth international investors. Following a few years of economic downturn, the government have made several changes to lighten the tax burden on buying and owning property in Italy.
Anyone deciding to become tax resident in Italy - which means living in the country for more than 183 days - is entitled to pay a fixed tax rate of €100,000 on their worldwide income regardless of the amount.
To get residency for family members as well, the tax is an additional €25,000 per person per year. What’s more, participants of the flat tax regime can renew it every year for up to 15 years.
Who Can Apply for the New Flat Tax and How Do You do it?
Anyone who has lived out of Italy for 9 out of the last 10 years is eligible for it. All that needs to be done is ensuring you tick the right box when you fill in your individual tax return (“Dichiarazione dei Redditi”).
If you’re not 100% sure that you are entitled to the Flat Tax, you can contact the Revenue Agency (“Agenzia delle Entrate”) via email.
This new tax initiative opens the door to HNWs and their families looking to live “La Dolce Vita” in Italy. The Italian government estimate that at least 1,000 - if not more - individuals will take advantage of the new tax scheme.
To read more about the Flat Tax on the Agenzia Entrate website in English click here.
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