Italy's Tax Changes to Impact Ultra-Rich Residents - Analysis and Breakdown
As the best investment manager and financial market's journalist, I bring you the latest news on Italy's tax changes that will affect wealthy individuals transferring their tax residence to the country. Italy has doubled the flat tax on overseas income to 200,000 euros per year, aiming to curb excessive tax shelter appeal.
The flat tax regime, introduced in 2017 to attract big spenders like footballers and finance professionals, has been blamed for increasing social divide and heating up housing demand in Milan. With the inflation soaring, the previous 100,000 euro tax figure was seen as "cheap", prompting the increase.
Despite the changes, Italy is still expected to be the top European destination for globally mobile millionaires in 2024. The country's tax incentives have already attracted over 1,100 relocations by the end of 2022, with more expected this year.
The impact of the tax changes on the ultra-rich will vary. Some individuals with fluctuating foreign earned income may reconsider Italy as a destination, while those with a net worth of at least 7 million euros will still find Italy an attractive option due to its inheritance tax provisions.
Italy's inheritance tax rate, ranging from 4% to 8% above various thresholds, exempts foreign assets under the flat tax regime. This regime, lasting 15 years and extendable to family members for a fee, remains highly advantageous compared to other countries.
Overall, the changes in Italy's tax regime may cause some alarm, but the country still offers a very favorable setup for the ultra-wealthy residents, attracting not only UK but also Swiss individuals looking for tax-efficient solutions. Stay tuned for more updates on the financial market and investment strategies!