Why you should move to Italy ...

Residential non domiciled regime

Individuals, who have not been resident in Italy for more than one year out of the last 10 years, may elect to be taxed on their foreign assets and income at a flat tax equal to Euro 100.000 (increased by Euro 25.000 for every member of his/her family moving to Italy) for each FY. This tax scheme also exempts from wealth tax (see above) and from estate and gift taxes with respect to foreign assets. The option may be waived by the taxpayer at any time. The regime’s duration is 15 FYs. Capital gains stemming from “substantial shareholdings” – more than 20% of voting rights – within 5 years from the application are not covered by the flat tax and may  be taxed at the ordinary tax rate (26%). 

Foreign pensioners: retiring in the south of Italy

Individuals holding non-Italian pensions and who have not been tax residents in Italy  in the last five years prior to the relocation to Italy may transfer their tax residence to one of the Southern Italy’s municipalities (Municipality with a population of less than 20,000 inhabitants of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sicily and Sardinia regions) and opt for a 7% flat tax on all foreign sourced income. Furthermore, such individuals may benefit from the exemption from obligations regarding fiscal monitoring and from the payment of wealth tax on foreign assets. The flat tax option is valid for five tax years.

Foreign workers - entrepreneurs

Individuals who have not been tax residents in Italy for at least two years prior to the transfer to Italy may move to Italy for work reason (irrespectively of the fact that he/she is self-employed or an employee) and opt for a 70% exemption regime whereby they are taxed only on 30% of their income. The exemption percentage is increased to 90% in case the taxpayer moves to Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily. This regime is valid for five years or ten years in the event that the taxpayer purchases an immovable property in Italy.

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