Italian Flax Tax Regime New Residents HNWI Assistance


Italian Flax Tax Regime for New Residents High-Net-Worth Individuals (HNWI)

Discover Why You have not to Miss the Most Trending Tax Benefits Program

All You have to know before applying, with Frequently Asked Question

What Is the Italian Flax Tax Regime for HNWIs?

The Italian Lump Sum Flax Tax regime allows individuals who become Italian tax residents to opt for a flat yearly tax of € 100,000 from all worldwide incomes outside Italy, regardless of the amount of that income.

The option, which is selected through the annual tax return, is available for up to 15 years and can be waived at any time during that term. 

Who can benefit from the Italian Flax Tax Regime?

To qualify for the option, an individual must have been a tax resident of countries other than Italy for at least 9 of the 10 years preceding the year during which he or she becomes an Italian tax resident.

If this condition is met, the option is available regardless of the taxpayer’s nationality, i.e. it is available for both non-Italian and Italian nationals. The flat tax, if opted for, replaces any tax to which an Italian tax resident would otherwise be subject on income from sources outside Italy.

 The only exception is that, during the first five years, the new resident will still betaxed on capital gains from the sale of a “qualified participation” in a company. A “qualified participation” means, in the case of a closely held company,

  1. an interest with more than 20% of the voting rights in the company, or an interest of more than 25% regardless of its voting rights.

A “qualified participation” means, in the case of a publicly-traded company,

  1. an interest with more than 2% of the voting rights in the company, or an interest of more than 5% regardless of its voting rights.

At the time of opting for the flat tax or at any time during the 15-year term, the new tax resident can indicate that he/she does not want the option to operate with respect to income generated in one or more nominated foreign country or countries.

In this case, the relevant item of income will be taxable in Italy in accordance withordinary rules. Income from Italian sourceswill be taxed in accordance with the regime ordinarily applicable to Italian tax residents.

Which Tax Benefits Will I Have with Italian Flax Tax Regime?

Lump Sum tax: pay only fixed amount of tax, regardless of how much incomes you have wordlwide.

Extension to Family member: lump sum tax can be extended to cover all family members.

Flexible concept of “Family member”: it includes spouses, sons and daughters (including sons-in-law and daughters-in-law), parents (including parents-in-law), and brothers and sisters.

Italian Citizenship: after 10 years of legal residency in Italy an individual should be eligible to apply for Italian citizenship.

No suprises: No tax credit will be allowed against the € 100,000 annual amount for taxes paid abroad.

No limits: differently as for other types of visa, there is no annual quota limits for applying to this. If you are eligible, you can apply anytime.

Full integration with any VISA: this special tax regime it’s an option that you can add within any other VISA application.

Very long-term benefit: you can obtaing and benefit of this special Tax up to 15 years.

Related big benefits:  applicants will be exempt from RW reporting obligations and, consequently, from IVAFE and IVIE.
New tax residents who choose to be taxed under the special regime will be exempt from gift tax and inheritance tax on transfers of assets located outside Italy

What are you waiting for applying for the Italian Flax Tax Benefit?



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