Italy mulls doubling flat tax for new residents

Italy is considering raising its flat tax on foreign income for new residents, potentially doubling it from €100,000 to €200,000 annually, according to Il Messaggero.

The flat tax, introduced in 2017, allows wealthy individuals relocating to Italy to avoid taxation on their foreign income, gifts, and inheritance for 15 years in exchange for a lump-sum payment. Income earned within Italy remains subject to regular taxation.

Prime Minister Giorgia Meloni is exploring ways to boost revenue amid financial pressures and is also discussing potential tax increases for lenders and insurers benefiting from recent interest rate hikes.

A draft decree outlining the proposed tax changes is set to be reviewed in a cabinet meeting on Wednesday. Since the introduction of the flat tax, approximately 4,000 people have relocated to Italy under this regime.

Attribution: Bloomberg