The Italian government has announced that the ‘substitute tax’ on foreign income and gains of individuals who transfer their tax residence to Italy is to be doubled to €200,000.
Similar to the position in the UK, individuals who are resident in Italy are subject to tax on their worldwide income. There is an exception for those who move to Italy, so long as they have been resident elsewhere for at least nine out of the ten years before their transfer to Italy. Such individuals can elect into an alternative tax regime which applies a flat-rate charge (currently €100,000) in lieu of whatever amount would be due on their foreign income and gains under regular Italian tax rules. This alternative calculation is available each tax year for 15 years after Italian residence is acquired.
The Italian government has announced that the ‘substitute tax’ on foreign income and gains of individuals who transfer their tax residence to Italy is to be doubled to €200,000.
Similar to the position in the UK, individuals who are resident in Italy are subject to tax on their worldwide income. There is an exception for those who move to Italy, so long as they have been resident elsewhere for at least nine out of the ten years before their transfer to Italy. Such individuals can elect into an alternative tax regime which applies a flat-rate charge (currently €100,000) in lieu of whatever amount would be due on their foreign income and gains under regular Italian tax rules. This alternative calculation is available each tax year for 15 years after Italian residence is acquired.
