Italy May Raise Foreign Income Tax for Wealthy: Messaggero
(Bloomberg) -- Italy may raise a flat tax regime on new residents’ foreign income that is turning the country into a top destination for the global wealthy.
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A €100,000 ($109,130) annual flat tax on foreign income could be doubled to €200,000, Il Messaggero newspaper reported on Wednesday.
Wealthy people who decide to transfer to Italy can apply for a flat tax on their income produced abroad to save money. First introduced in 2017, this provision exempts new residents from paying foreign income, gifts and inheritance for 15 years in exchange for a lump sum payment of €100,000 ($109,000) a year. Any income produced in Italy would be regularly taxed.
Prime Minister Giorgia Meloni is looking at ways to raise more cash amid a squeeze on Italy’s public finances ahead of the autumn budget.
Last week, officials from the prime minister’s team had preliminary discussions with the Finance Ministry about how to raise more taxes from lenders and insurers that benefit from the surge in interest rates over the past couple of years, people familiar have said. No decision has been taken.
The potential tax regime amendment could be included in a draft decree set to be reviewed in a cabinet meeting scheduled for Wednesday.
Since Italy introduced the flat tax, about 4,000 people have moved to the country and used the regime.
--With assistance from Sonia Sirletti.
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