Italy: Flat tax comes into force, Government aims to intercept the disappointed of Brexit
The ‘after Brexit’ looks at Milan as a possible European financial hub.
The aim is to attract wealthy foreign investors encouraging them to invest and reside in Italy, the ones who have always been kept away from Italy in the past and preferred countries like Britain where taxes on heath are always being lower.
A very ambitious challenge.
Flat tax is now effective given recent publication of details on Revenue Agency ‘Agenzia delle Entrate’
THE NEW RESIDENTS REGIME
Aim: enhance investments in Italy by attracting high-net-worth individuals.
Qualifying persons: individuals who have been non-tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy.
Benefits: high-net-worth individuals transferring their tax residence to Italy are enabled to apply a substitute tax to their foreign income and gains, amounting to 100,000 Euro for each fiscal year. The regime may be extended to family members (€25,000 per member).
Further good news for Investing in Italy
If you are a company or an individual enterprise, wishing to invest in Italy, you are eligible for several tax allowances, such as the allowance for corporate equity, the tax credit on research & development activities and the patent box regime, the super and extra amortization, the Vat grouping rules and the new residents regime for individuals.
Furthermore, running from fiscal year 2017, you will benefit of the reduction of Italian corporate tax rate from 27.5% to 24%.