The Italian Government designed a new flat tax, under the new Article 24 bis of TUIR (consolidated law on income tax) introduced by the new Italian Budget Law 2017. The aim of this law is to revive the economic fortunes of Italy by making the country competitive with countries such as England and Spain, which have faired better in terms of cost savings and tax benefits. The Flat Tax law is designed to attract foreign persons and wealthy taxpayers that have never resided in Italy to invest in the country by not only giving incentives by way of tax rebates, but also with the splendour of Italian culture and food. Read More

Marco Rossi

With the Budget Law for fiscal year 2017, Italy enacted a new flat tax for Italian first-time residents. The flat tax amounts to euro 100,000 regardless of the amount of taxable income. Foreign source income is completely exempt from tax, while domestic source income is taxed under the normal rules (graduated tax rates on income brackets generally applying to all resident taxpayers).

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