The Italian government has approved a measure to double the flat tax to €200,000 per year for high-income individuals who have recently moved from abroad.
The favorable tax regime for wealthy new residents was introduced by a center-left government in 2017, aiming to attract big spenders to stimulate Italy’s sluggish economy.
The scheme, which according to Economy Minister Giancarlo Giorgetti has resulted in 1,186 wealthy individuals relocating to Italy, has now come to an end as Italy opposes the idea of countries competing to offer fiscal advantages to the rich.
“As we stated in G20 and G7 meetings, we are against participating in competition with other countries to create tax havens for individuals or companies. A country like Italy, with limited fiscal space, can only lose in such competition,” Giorgetti said.
The doubling of the flat tax will apply only to newly arrived wealthy individuals and not those who have already relocated their tax residence to Italy.
