Italy Grants Non-Dom Status To First HWNI Taxpayer
Italy has granted non-domiciled status to a taxpayer for the first time, after introducing a new non-dom regime at the start of the year.
Withers LLP represented the taxpayer, a high net worth individual who was formerly registered as a non-dom in the UK, and who has decided to move to Italy to take advantage of the new status and to establish a new hub for his family.
On launching the regime, the Italian Revenue Agency said: “This favorable tax regime is available for ‘newly resident’ individuals 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. The incentive regime may be also extended to the family members of these individuals.”
“High-net-worth individuals transferring their tax residence to Italy are enabled to apply a substitute tax to their foreign income and gains, amounting to EUR100,000 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 period of 15 years.”
“The election for the regime may be extended to family members through the payment on their foreign income and gains of a substitute tax amounting to EUR25,000 per member.”
