The Italian government has announced a significant increase in the tax charge for individuals who transfer their tax residency to Italy, doubling the amount to €200,000.
Under Italian law, similar to the UK, residents are taxed on their worldwide income. However, there is a special provision for those relocating to Italy, provided they have been residents in another country for at least nine out of the ten years before moving to Italy. These individuals can opt for an alternative tax regime that imposes a flat-rate tax (previously €100,000) on their foreign income and gains, rather than the standard Italian tax rates. This special tax regime can be utilized for up to 15 years following the establishment of Italian residency.