In an attempt to entice wealthy individuals to part with their cash on the Italian peninsular, Italy is set to introduce a set of measures which will allow expats to become residents whilst paying no tax on foreign income for 15 years.
It is a move designed to entice disenfranchised Britons seeking to escape from Britain over fears of a damaging “hard Brexit”. However, Italy has put in place strict conditions which must be met which means the proposal may apply to only a small pool of British expats.
Applicants must have resided outside Italy for the previous nine years, and must be earning considerable foreign income. The residency all comes with an annual fee of 100,000 euros, and a requirement to purchase and reside in an Italian property for at least 6 months per year.
The move is designed to bring the spending power of wealthy individuals into Italy, and with the safeguards in place aims to attract those seeking a second home, or alternate residency, as opposed to attracting a mass influx of expats who would seek tax breaks around domestic income earned, and lower charges for residency.
Italy’s move follows similar overtures from Portugal, whose offer includes the abolition of a 1% tax on property valued at 1 million Euros or higher. Expats would be able to spend up to 600,000 Euros each on a property without paying the levy.
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