The new Italian “flat tax” – is a substitute tax – for wealthy foreigners resident abroad who wish to purchase a villa in Italy and bring their primary residence in Italy in force since 8th March 2017.
Ideal for those who want to buy a luxurious mansion for example on Lake Como the most favorite and logistically strategic location in Europe and bring the primary residence in Italy paying only € 100.000 per year on their incomes whereever the incomes are in the world.
They would take advantage of this flat tax for 15 years maximum.
It seems that one of the first foreigner to use them is Mr. V.G. who decided to make a nice gift to his wife purchasing a dream villa in Costa Smeralda and so becoming this summer neighbor with Alisher Usmanov, owner of Gazprom.
Moreover, he seems to have thought of transferring in Italy the residence of all the family taking advantage of the entry into force of the ‘flat tax for foreigners’ of hundred thousand Euros (€ 100.000).
While Milan tries to exploit the effects of Brexit creating a new financial City, Rome, Tuscany, Sardinia and Lake Como are confident of becoming the “goal” for business people from around the world.
New requests of italian residence have been already received from some billionaires from the beginning of 2017 which are almost twenty so far but are expect thousands of them.
Names are highly confidential, but the big one for now transpires that’s what the owner of a chain of fashion stores with assets according to Forbes about a billion dollars, nicknamed “the glamour governor.”
A fundamental condition to be able to apply to this flat tax is not tobe resident in Italy since at least 9 years of the last 10 years. The request can be delivered by hand, by registered mail with receipt or electronically, using a certified email address. The flat-tax scheme can be extended to one or more family members who meet the requirements with just an extra € 25.000 contribution, through a specific indication in the tax return related to the tax period in which the family moved the fiscal residence in Italy.
The regime is reserved to individuals and not to companies, who move their fiscal residence in Italy. The flat tax covers income produced abroad but does not apply to capital gains earned through the sale of financial holdings during the first five tax years of validity of the measure.
This news is definitely of big interest and probably the most important information for a wealthy foreigner which in the past has just thought to purchase a villa but not about bringing his fiscal residence here in Italy.
Milan and Lake Como is expected to the top choice for wealthy foreigners.
The request must indicate the following:
• personal data, the number of Italian social security, and the address of residence in Italy if already established;
• the last jurisdiction in which was resident before the fiscal period in which the option came into force;
• declaration of the non-residence in Italy for a period of at least 9 fiscal years during the last 10 years prior to the validity of the option;
• states or territories abroad where the taxpayer does not intend to use the foreign substitute tax.