Flat tax regime for HNWIs

Few years ago, Italy introduced a preferential tax scheme particularly appealing for “High Net Worth Individuals (HNWIs)” according to which, irrespective of how much foreign income they have, new residents can opt to pay an annual flat tax of Euro 100,000 (which can be extended to family members by adding an amount of Euro 25,000 for each family member to be included).

This particular tax regime, also know as “flat tax” or “res-non-dom” regime, which can be applied for a maximum of 15 years, can be revoked at any time and bears some additional incentives including exemptions from gift and inheritance tax on foreign assets, from tax monitoring and from IVAFE and IVIE tax payments. This regime does not shelter income arising in Italy, which is subject to ordinary taxation.

Who can apply for it?

To be able to apply for the flat-tax regime, applicants must:

• becomes Italian tax residents under Italian rules

• not have been Italian tax residents for 9 out of 10 years preceding their relocation to Italy

Family members that intend to apply along with the main applicant shall meet the same requirements.

Potential applicants have the possibility, to prevent any issue, to request a preliminary binding ruling from the Italian Tax Agency (Agenzia delle Entrate) before officially filing the application for this tax regime.

This preferential tax regime is therefore available to Italian, EU and non-EU citizens, provided that they comply with the requirements set forth above, among which the relocation and transfer of their tax residence to Italy (which in the case of non-EU nationals implies the need of the prior obtainment of a visa and residence permit for Italy).

Your Way to Italy: our assistance

Our team is available to provide support and assistance throughout the process! Contact us to book your first consultation with us and to start the process to apply for the flat tax regime! #YourWaytoItaly

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Article written by Alessia Ajelli, Managing Associate of LCA Studio Legale, Italian lawyer specialized on Italian immigration and citizenship law.