As of the tax year 2018 it is possible to apply for the new tax regime for “high net worth individuals” based on which a fixed tax amount of Euro 100,000 is due for income derived outside Italy.
The new flat tax:
- absorbs the progressive taxes deriving from employment income derived outside of Italy;
- absorbs all substitute taxes due on foreign dividends from non-qualified shareholdings and foreign interests from bank/bonds;
- waives the tax monitoring obligation (form RW);
- exempts the individual from the wealth tax on financial assets and real estate properties held outside of Italy;
- exempts the individual from the inheritance / donation tax on foreign inheritance/donations.
The option for this tax regime must be expressed by filling in Box “NR” in the Italian 2018 Redditi Model. It is also possible to request the Italian Tax Authorities’ corresponding approval for this tax regime. The new tax regime can be used for a period of 15 years and can also be extended to family members with a fixed tax due of Euro 25,000.