As reported by international-adviser.com, “Italy has introduced a flat rate of tax aimed at attracting wealthy expats to its shores as it looks to compete with similar regimes offered in the UK and Spain.
Similar to the UK’s non-dom system, the new flat rate tax of €100,000 ($107,865, £86,306) a year, which went live on 8 March, will give foreigners a special status exempting them from paying Italian tax on any offshore income and gains.
This charge can also be extended to family members, at a cost of €25,000 per person. One of the conditions is that the individual must reveal their tax residency location to the Italian authorities and would have had to have resided abroad for nine of the last ten years.
The regime is available for up to 15 years, unless the individual fails to pay the charges. A person is considered an Italian resident for tax purposes if they are in the country for more than 183 days, or six months.