Special flat taxation in case of foreigner becoming tax resident in Italy.

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14.10.2018

Last Italian Government established a flat-tax regime for individuals who previously have not been tax residents of Italy and who transfer their tax residence to Italy.

On the base of such new tax law the individual will pay (instead of ordinary tax) a flat-rate substitute tax of €100,000 per year on all their non-Italian sourced income. 

Under that new flat-tax regime, foreign income subject to the flat tax includes:

-          Employment income

-          Rental income

-          Capital income

-          Self-employment income

-          Corporate income (with or without permanent establishment)

-          Other income

Even if tax rulings are optional we suggest to consider whether to verify in advance that they satisfy the requirements for the flat-tax regime with an official tax ruling to Tax Agency.

If you do not forecast to move work activities in Italy (in such case you need special work authorization) but you can simple move your residence to Italy, keeping your business activities abroad, Residenza Elettiva visa can be filled.

Elective residence visa allows entry into Italy for the purpose of living for foreigners intending to set residence in our country and to be able to support themselves without the need to work. 

The foreigner must only provide adequate and documented assurances about the availability of accommodation to be elected as a residence, and ample economic resources autonomous, stable and regular, of which we can reasonably assume the continuity in the future. 

These resources (not less than EUR 35,000/year for family) will have to come from the ownership of large incomes, possession of real property, the ownership of stable business activity or from other sources other than employment. 

Even minor children and adult children living with and at the expense of family holder, may be issued a similar visa, provided that the above financial capabilities are considered appropriate for the latter. 

In particular, in the event you require a visa for the spouse the amount of monthly income must be increased by at least 20%. The increase will be at least 5% for each child for whom you apply for a visa. 

We underline that, as established by the regulations, the verification of the requirements is totally at the discretion of the Embassy.

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