FLAT TAX HNWI

Wishing to live the "Dolce Vita" but scared of the Italian tax system?

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Italy is one of the world top destination for living, due to its history, culture, landscape, food and wine. However, many people decide not to make the move for a simple reason: Italian taxes!

Since 2017 the Italian government has introduced a new tax regime for new residents  which does not tax any foreign income. 

Let's discover how this works.

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What is the flat tax regime?

Under the flat-tax regime, individuals moving to Italy who previously have not been tax residents of Italy a will pay just € 100,000 per year on every non-Italian sourced income for the next 15 years.

Each family member opting for the flat tax regime, will be subject to € 25,000 annual tax instead of € 100,000. 

Under the flat-tax regime, foreign income subject to the flat tax includes:

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• Employment income

• Rental income

• Capital income

• Self-employment income

• Corporate income (with or without permanent establishment)

• Other income

By opting for the new tax regime individuals are exempt from:

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• Donations and inheritance taxes relating to assets and real estate owned abroad

• Tax on real estate owned abroad and from wealth tax on foreign financial investments

• Remittances tax

• Wealth tax on foreign held assets

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The flat tax does not apply to any Italian sourced income and capital gains realised upon the transfer of non-Italian "qualified" shareholdings in the first 5 years after the election.

How to apply?

You can apply through the annual tax return.

The taxpayer may also submit to the Italian Tax Authorities a formal pre-emptive report including the following information:

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• Taxpayer’s personal data, including Italian tax code;

• Jurisdiction (or jurisdictions) under which the taxpayer has been tax resident during the previous fiscal years;

• Jurisdiction (or jurisdictions) that the taxpayer wishes to exclude from the flat tax.

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Furthermore, the ruling could be requested before the taxpayer moves to Italy; Italian Tax Authorities have up to 120 (180) days to approve or deny such request and such time could be spent to plan the move your Italy.

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How can we help you?

Retire2Italy has wide expertise in helping our international clients with the Flat-tax regime application and its subsequent Italian tax compliance.

​We can help you with:

• Advisory on Flat tax regime application

• Advisory on the Italian tax implications

• Tax planning

• Ruling submitting

• Tax return filing

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Move your first step to Italy, use the form below and get in touch with us.