Updates to Italy’s competitive special tax regime
Italy introduced a special tax regime introduced by Article 16 of Law Decree no. 147 aimed at high net worth individuals (HNWI) who had not previously lived in Italy but were prepared to commit to living in Italy for a set period of time. Commonly known as the flat-rate tax it offered a highly attractive flat-rate tax on the global income of an individual (excepting that earned in Italy) as well as other equally advantageous tax rates. There have been several amendments since the law’s enactment as well as additional tax provisions in 2017 and 2019 addressing the special tax regime for HNWI and those who have retired.