Towards the end of the sixties one very famous Italian performer, Domenico Modugno, was singing ‘Meraviglioso’, which was saying “[…] but look around you/ gifts that have made you / They have invented the sea / You say ‘I have nothing’/ It seems nothing the sun? […]” and this song seems to be deeply related to the beauty of living in the so called “Bel Paese”, that is to say, Italy.
How beautiful, how wonderful indeed, would be to live in such a beautiful Country, surrounded by art, friendly people and lovely villages, without forgetting the bonus of staying in the homeland of the best food in the world and completed – like a cherry on a cake – by a temperate weather?
It is a very recent news, that one that was published in the “Gazzetta Ufficiale Italiana” during January 2017, and clarified with the document about ‘Revenue Measures’ of the 8th of March, that establishes, the requirements and the guidelines in order to set the residency in Italy.
This new measure outline the possibility to move the tax residency in Italy, upon the payment of a flat rate of 100,000 Euro on incomes produced abroad (those produced in Italy would be taxed at normal rates). The application of this new regime is not only optional, but there is no need, for the applicant, to declare the amount of the foreign income or capital.
The new resident would be fully equated to other taxpayers in Italy, thus subject to the fact that – to be considered resident in Italy – the individual shall linger in the Country more than the half of the tax year.
Furthermore, in the case in which the individual would like to move with its family, there would be the possibility of benefitting of another additional flat rate of EUR 25,000 to compute with the principal tax, in order to register any relative of the main taxpayer.
As main requirements, we can definitely mention:
Once the application would be approved (even with silent consent), the individual can benefit of this flat rate for the next 15 years.
As conclusion, even if it is always important to underline that every individual situation should be carefully analysed, we can say – with no doubt – that finally Italy took the field with other tax-friendly countries for high wealth individuals, such as Portugal or Malta.
Simona Angotzi is a Corporate Officer in White November Group Corporate Department.