Italy doubles annual ‘flat tax’ on new wealthy expats

The Italian government is to double its annual ‘flat tax’ on the foreign income of high net worth individuals who choose to become tax resident in Italy to €200 000. The flat tax allows foreign residents moving to Italy or Italian citizens returning from living abroad for at least nine years to pay this annual tax on foreign income or assets for 15 years.

A spokesman from the Italian ministry of finance confirmed that the increased levy will not apply to expats already living in Italy – it would only apply to wealthy individuals electing to take up residence in the country in future. 

Tim Stovold partner at Moore Kingston Smith said the increased levy would ‘reduce the number of people wanting to go to Italy’ but that the regime will still be interesting for anyone with more than £7m in assets.

Miles Dean...