Italy proposes 100,000 euro flat tax to draw foreigners

Italy introduced a flat tax for wealthy foreigners in a bid to compete with similar incentives offered in Britain and Spain.

Published: 09th March 2017 12:04 AM  |   Last Updated: 09th March 2017 12:04 AM   |  A+A-

A picture illustration of Euro banknotes, April 25, 2014. | REUTERS


ROME: Italy on Wednesday introduced a flat tax for wealthy foreigners in a bid to compete with similar incentives offered in Britain and Spain, which have successfully attracted a slew of rich footballers and entertainers.

The new flat rate tax of  100,000 euro ($105,000) a year will apply to all worldwide income for foreigners who declare Italy to be their residency for tax purposes.

The measure, proposed in Italy's 2017 budget, is expected to immediately draw in at least a thousand people, according to local media.

But those who would want to take advantage of the tax rate would have to have resided abroad for nine of the last 10 years, and have sufficient income to make the 100,000 euro price tag an attractive deal. 

An additional 25,000 euros per person would also be added to the tax rate of those who set up Italian residency for close family members.

A person is considered an Italian resident for tax purposes if they are in the country for more than 183 days, or six months.

According to Italian tax authorities, the flat tax would be renewable every year for a maximum of 15 years.

The new tax plan is a an about-face for Italy.

In 2007, the Italian tax office sued countryman Valentino Rossi, a world motorcycling champion, for unpaid taxes, rejecting his excuse that his main residence was in London.

Rossi eventually paid 19 million euros in 2008 to settle his tax bill.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp