FLAT TAX FOR NEW RESIDENTS
The 2017 Italian Budget Law included a new tax package to attract the high net worth individuals that want to relocate to Italy. This new regime provided by the article 24-bis of the Italian Tax Code is a new tax package to attract the high net worth individuals that want to relocate to Italy.
The new law includes a € 100,000 substitutive flat tax on all foreign incomes for individuals who become Italian resident. The most important requirement is to become an Italian resident after at least a 9-year period of residence outside of Italy.
According to this new package the new resident not domiciled taxpayers can choose which country or countries income to tax with this substitutive flat tax. All the incomes coming from non-chosen countries (if any) are excluded from the flat tax regime and, therefore, they are subject to ordinary Italian taxation and will benefit from tax credit on taxes paid abroad (under ordinary Italian and international treaties regulation and limits).
So new resident that opts for the flat tax regime may apply the ordinary tax regime with respect to incomes arising from one or more specified countries. All the incomes from one excluded country are taxed with ordinary rules, in fact the taxpayer cannot pick each income, but only all the incomes from a specific Country. This system may allow new resident to benefit from international tax treaties with respect to the related incomes.
Our professionals are able to offer tax advice, planning and help from income tax to inheritance tax on a personal or individual level. When providing personal tax advice we consider it fundamental that we fully understand what the client wants to achieve. At the same time it is imperative that our clients understand the consequences of any tax planning we may undertake for them, not only to save tax, but perhaps also to safeguard the family wealth for future generations. Our entire focus when asked to provide tax advice is to ensure that you pay only the tax that you need to and if possible to save you tax.
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