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New residents regime

AT A GLANCE
NEW RESIDENTS REGIME

Aim: enhance investments in Italy by attracting high-net-worth individuals.

Qualifying persons: individuals who have been non-tax resident in Italy for at least 9 years out of the 10 years preceding their transfer to Italy.

Benefits: 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 100,000 Euro for each fiscal year. The regime may be extended to family members (€25,000 per member).

What is it

The new residents regime, aimed at enhance investments and attract to Italy high-net-worth individuals, provides for those individuals transferring their residence to Italy, a substitute tax to their foreign income and gains.

Who can access the regime

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.

Benefits

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 €100,000 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 €25,000 per member. In order to benefit from the regime, all applicants have to submit a preliminary probatory ruling to the Italian Revenue Agency in order to prove the existence of the eligibility requirements. Individuals transferring their tax residence have to pay inheritance and donation tax only for properties and assets existing within the Italian territory.