What is it

The tax regime for new residents is designed for individuals transferring their residence to Italy and provides a substitute tax on income earned abroad. This favorable regime aims to encourage investment and attract high-net-worth individuals to Italy.

Who can access the regime

This tax regime is available to individuals newly resident in Italy, who (regardless of their nationality or domicile) have been non-tax resident in Italy for at least 9 of the 10 years preceding their move to Italy. The incentive regime may also be extended to family members of these individuals.

Benefits

High-net-worth individuals transferring their tax residence to Italy have the option of applying a substitute tax on foreign income, equal to €100,000 for each tax period (€200,000 for transfers starting August 10, 2024), in lieu of Italian income tax. Therefore, this taxation represents an alternative to the application of ordinary taxation and is valid for a period of 15 years. The regime can be extended to family members through the payment on their foreign income of a substitute tax amounting to €25,000 per member. Taxpayers can access the regime by submitting a formal request to the Revenue Agency or by exercising the substitute tax option in their tax return. Individuals who transfer their tax residence are required to pay inheritance and donation tax only for properties and assets existing within the Italian territory.

Our firm can assist those intending to transfer their residence to Italy with all tax aspects related to the application of the tax regime described and with the preparation of tax returns.

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