Discovering La Dolce Vita: Moving to Italy Using Tax Advantage Regimes

Discovering La Dolce Vita: Moving to Italy Using Tax Advantage Regimes

Introduction: Italy, a country famous for its rich history, stunning landscapes, and delicious cuisine, has introduced several tax advantage regimes to attract high net worth individuals, professionals, and entrepreneurs. These special tax schemes, such as the high net worth individual 100k tax regime, impatriate regime, and special retirees regime, offer significant tax benefits to those who qualify. In this article, we will explore these tax advantage regimes and discuss the key aspects to consider before making the move to Italy.

1. High Net Worth Individual 100k Tax Regime: Introduced in 2017, the high net worth individual 100k tax regime is designed to attract wealthy individuals who wish to establish residency in Italy. Under this regime, eligible taxpayers pay a flat annual tax of €100,000 on their foreign-sourced income, regardless of the amount, instead of the standard progressive tax rates. This scheme is available for a maximum of 15 years, and taxpayers can opt out at any time.

To qualify for the 100k tax regime, you must meet the following criteria:

• Become an Italian tax resident (spending more than 183 days per year in Italy)
• Have not been an Italian tax resident for at least nine out of the previous ten years
• Make a formal request to the Italian tax authorities

2. Impatriate Regime: The impatriate regime is designed for professionals, managers, and entrepreneurs who move to Italy to work. Under this regime, eligible individuals receive a significant reduction in their taxable income for a period of five years (up to 10 years in some cases). For most impatriates, 70% of their Italian-sourced employment or self-employment income is exempt from taxation. This percentage increases to 90% for those residing in Southern Italy or the islands.

To qualify for the impatriate regime, you must:

• Become an Italian tax resident
• Have not been an Italian tax resident for at least two years prior to the move
• Work primarily in Italy (at least 183 days per year)
• Make a formal request to the Italian tax authorities

3. Special Retirees Regime: The forfait regime is aimed at retired foreign nationals who wish to reside in Italy's southern regions, such as Sicily, Calabria, and Sardinia. Under this scheme, eligible retirees pay a flat tax of 7% on all foreign-sourced income for up to nine years.

To qualify for the forfait regime, you must:

• Be a retiree receiving a foreign pension
• Establish residency in a municipality with a population of fewer than 20,000 in Italy's southern regions
• Have not been an Italian tax resident for at least five years before the move
• Make a formal request to the Italian tax authorities

Conclusion: Italy offers several tax advantage regimes to attract high net worth individuals, professionals, and retirees. By taking advantage of these schemes, you can enjoy the many benefits of living in Italy while minimizing your tax burden. Before making the move, it's essential to carefully consider your eligibility, the requirements of each regime, and the overall lifestyle in Italy. Consulting with a professional international tax lawyer or consultant can help you navigate the complexities of Italian tax law and ensure a seamless transition to la dolce vita. We can help you with all regimes indicated.

If it is your first time, here are some examples of the results our tax lawyers can help you achieve:

- international tax optimization, to cut down your taxes (even to zero)

- analyze your specific situation and your business situation to help you choose the best country/countries for your specific needs, which guarantees you both tax savings and everything you wish for;

- protect your assets, making them "untouchable";

- become an international / global entrepreneur, able to use all world regulations and tax advantages to your benefit;

- making you profit using tax havens;

- acquire multiple residences;

- acquire new passports;

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