FLAT TAX HNWI

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

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.

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:

  • 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:

  • 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


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:

  • 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.

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.

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

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

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