How does the low-cost tax that "fascinates" the super-rich
With the Budget Law for fiscal year 2017, Italy enacted a new flat tax for Italian first-time residents. The flat tax amounts to euro 100,000 regardless of the amount of taxable income. Foreign source income is completely exempt from tax, while domestic source income is taxed under the normal rules (graduated tax rates on income brackets generally applying to all resident taxpayers). First-time residents will also be exempt from the duty to report their non-Italian financial assets, and will not be subject to Italy’s estate and gift tax. Special rules for residence permits and visas will also apply to facilitate the establishment of Italian tax residency in connection with the application of the new tax. The new flat tax is aimed at attracting high net worth individuals to Italy. This who have solely non Italian source income will pay euro 100,000 and will be cleared from any other tax filing and payment obligations.
Individuals who have not been resident in Italy for Italian tax purposes for at least nine of the previous ten years, at the time they establish their tax residency in Italy, will qualify for the flat tax. An individual is Italian treated as an Italian tax resident if she registers as an Italian resident individual at the local municipal office in the place where an individual has her home, or by maintains in Italy her place of habitual abode or the main center of interests, for more than half of a tax year...