HIGH NET WORTH INDIVIDUALS

The flat tax regime of EUR 100,000 has the purpose to encourage the transfer in Italy of new residents who are high net worth individuals.

In order to apply for the regime such individuals must not have been resident in Italy for at least nine out of ten tax years prior their transfer to Italy.

The payment of EUR 100,000 is due every year by June 30th, for 15 years maximum, starting from the year when the option is exercised.

The flat tax payment exempts the income produced abroad from Italian tax and waives new residents from tax monitoring obligations (RW Form), from the payment of the IVIE (wealth tax on real estate), IVAFE (wealth tax on financial assets) and inheritance and donation tax.

The acquisition of the “new resident” status allows the individual to apply the Double Tax Treaty in place between Italy and the foreign country either in order to exempt the individual from income tax outside of Italy or to claim the tax credit.

The option must be exercised in the tax return (Form NR) and can also be extended to family members, with the payment of a substitute tax of € 25,000.00 each per year.

In order to safeguard the interests of the new residents, it is crucial to submit a Ruling to the Italian Tax Authority.

The Firm is available to support “new residents” in the following activities:

• preliminary assessment of the requirements in order to access the flat tax regime
• assistance with the checklist to enclose to the Ruling
• preparation and filing of the Ruling
• draft and submission of the tax returns