Italy introduces €100,000 flat tax to draw rich foreigners
By Michael Lim
/ The Edge Property |
Well-heeled individuals thinking of migrating can now add another country, Italy, to their list. On March 9, the Italian government introduced a flat tax for wealthy foreigners who would like to live in Italy. The tax is its attempt to compete with similar incentives offered in Britain and Spain.
The income revenue authority has made it possible for foreigners to move to Italy and pay a flat tax of only €100,000 ($153,364) on all income accrued abroad, and a further €25,000 for every family member who wants to register his or her fiscal address in Italy.
According to local reports, those who wish to participate in this scheme will need to have a net worth of at least €15 million. The flat tax will only be paid on income made abroad, while any money made in Italy will be taxed at a normal rate. A person is considered an Italian resident for tax purposes if he or she has been in the country for more than 183 days, or six months. According to Italian tax authorities, the flat tax will be renewable every year for a maximum of 15 years.
The impact of this law, implemented on March 8, has been significant. Based on research carried out by Lionard Luxury Real Estate SpA, there has been a 17% increase in the demand for luxury properties in Italy.
Source: Bloomberg
According to local reports, those who wish to participate in this scheme will need to have a net worth of at least €15 million.
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