Res non dom

Italy has rolled out a welcome to wealthy individuals and families from abroad by establishing a new tax status (The Resident Non-Domiciled Tax Regime), inspired by the Swiss “globalist” and by the UK “non-dom” regimes.

How does this regime work?

  • high-net-worth individuals who wish to relocate their tax residency to Italy will be subject to an annual flat tax of € 100,000, which absorbs and replaces any tax (income and wealth tax) on non-Italian-sourced income and assets (both financial and income from employment), even if remitted to Italy.
  • Italian-sourced income is subject to tax under current Italian legislation.
  • the regime lasts for a maximum of 15 calendar years.

What about family members?

  • Individuals resident outside Italy for tax purposes for 9 out of 10 of the previous calendar years (the regime certainly applies to individuals who have never been resident in Italy). There are no citizenship limitations.

Who is eligible?

  • Each additional family member can benefit from a € 25,000 flat tax;

Further Benefits:

  • Exemption from Italian Inheritance and Gift Tax relating to assets and real estate owned abroad.
  • Exemption from Italian disclosure of foreign assets and from payment of relative Italian wealth taxes.
  • Individuals can remit funds to Italy without any limitation.
  • Allowance for Double Tax Treaty income tax exemptions or reduction.

How to apply?

  • By filing the Italian tax return and paying the € 100,000 lump sum tax, or submitting a formal ruling to the Italian Tax Authorities. This is not strictly mandatory but the filing is recommended in order to ensure a valid application.

Does the flat tax regime help with my VISA?

  • EU, EEA and Swiss nationals do not need a VISA to visit Italy and do not need immigration permission to take up residence in Italy. They will, however, need to register themselves, and their family members, with the Italian Tax Authorities in order to obtain a tax registration number;
  • Non-EU nationals need a valid travel document to travel to Italy, and in certain circumstances, a Schengen Visa is also required. They will then need to make an application to the Italian Investor Visa Programme which grants a 2 year right to settle in Italy upon providing proof of any of the following investments:
  • € 2,000,000 in Italian Government bonds, to be held for a period of at least 2 years;
  • € 1,000,000 in philanthropic funding, supporting projects in the sectors of: culture, education, immigration, scientific research, and/or the recovery of cultural assets and landscapes.
  • € 1,000,000 in an Italian limited company;
  • € 500,000 in an Italian innovative start-up;
  • There is no requirement that the start-up or limited company business had already been active prior to the application. The applicant must hold the investment in Italy during the whole VISA period.
  • Successful applicants will receive a 2-year residence permit, with the option of a 3-year extension. Family members are also able to apply.
    ut a welcome to wealthy individuals and families from abroad by establishing a new tax status (The Resident Non-Domiciled Tax Regime), inspired by the Swiss “For more VISA opportunities, and more detailed information, please refer to our dedicated section “Immigration”.