The Italian government has decided to significantly increase taxes on the super-rich. According to reports from ORFthe new regulation will affect persons who wish to transfer their tax residence to Italy.
“Flat tax” for super-rich in Italy to be doubled
According to the “Spiegel“With its decision, the government wants to stop international competition for rich taxpayers and prevent tax evasion. Economy Minister Giancarlo Giorgetti explained: “We are against competing with other countries to create tax havens for individuals or companies.”
Specifically, the government plans to double the “flat rate tax” for rich people who move their tax residence to Italy from 100,000 euros to 200,000 euros. The government in Rome decided this on Wednesday. The previous tax privilege for the rich will thus be abolished.
According to ORF, however, the new regulation only affects people who want to move their main tax residence to Italy in the future – people who have already moved their tax residence to Italy will be spared.
Tax regulations attracted mainly rich celebrities
The “flat tax” was introduced in 2017 to attract rich people to the country and strengthen the economy. According to ORF, the Italian Court of Auditors estimates that the regulation generated tax revenues totaling 254 million euros between 2018 and 2022.
