Italy Introduces a High Net Worth Individual Tax System
Effective from 9th March, 2017, the high net worth individual tax system, pursuant to article 24 bis of Italy’s Budget Bill is a codicil that introduces an annual €100 thousand fixed tax rate for foreigners, including EU citizens, deciding to move their residence to Italy. An additional €25 thousand per annum for each of the individual’s relatives, irrespective of the level of income, is also proposed. According to the bill, for those deciding to move to Italy, benefiting from said fixed tax rate is neither an automatic right nor an obligation – it is a choice.
Individuals wishing to take advantage of the fixed tax rate, will have to file an application with the Italian tax authorities, the Agenzia delle Entrate, which will conduct investigations with the individual’s country of origin before taking a decision. (more…)