The first Italian Non-Dom Status granted to a British HWNI taxpayer

 

In March 2017, Italy has introduced a new non-dom regime (Flat Tax) giving the opportunity to get a golden visa to wealthy individuals willing to relocate in the Bel Paese.

Consequently, in August, Italy has granted a non-domiciled status (non-dom) to a British taxpayer for the first time. Probably, this is a natural consequence of Brexit, as many British taxpayers and companies are relocating abroad in EU to keep the benefits of the common market and Schengen area.

According to Withers, who represented the taxpayer, the individual has decided to move to Italy to take advantage of the new status and to establish a new hub for his family.

The Italian Revenue Agency stated that such a favourable tax regime is available for new residents in Italy who – regardless of their nationality or domicile – have been non-tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy and, very important, the tax incentive can be extended to the family members.”

High-net-worth individuals (HNWI) who transfer their tax residence to Italy are enabled to apply a substitute tax to their foreign income and gains, amounting to EUR 100,000 for each fiscal year, in lieu of the Italian Income Tax. Therefore, this taxation represents an alternative to the application of the ordinary taxation and the option is valid for a maximum period of 15 years. Any extra family member will ‘cost’ an extra EUR 25.000 per year.

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