From Italy: Wealthy Individuals Neo-Domiciled in Italy

Paolo Trevisanato and Francesco Marconi - Andersen Tax & Legal, the Italian Member Firm of Andersen Global

The Stability Law for 2017 introduces an optional fiscal regime for neo-domiciled: individuals, who recently established their permanent, fiscal residence in Italy, while still producing an income outside the country.  

Individuals who are subject to the regime will pay a fix, substitutive tax equal to 100.000 euro on foreign incomes, whereas the amount for family members is reduced to 25.000 euro.

The amounts refer to each year the regime is in force and can be leveraged for a maximum of 15 years. In case of missing or incomplete payment, the benefit will be interrupted.

An interesting advantage for individuals entering the regime is that they will neither be subjected to the monitoring requirements on foreign activities and nor to the payment of Italian taxes on foreign incomes. The favorable tax treatment will be applied after a positive result of a ruling addressed to the Italian Revenue Agency.

In addition to this fiscal benefit, other laws related to residency, like facilitating the issuing of entry visas and residency permits for individuals developing innovative start-ups have been approved with the aim of attracting foreign investments in Italy.

For further information please contact Paolo Trevisanato (Venice) and Francesco Marconi (Milan).