In response to the new flat tax rate introduced in Italy, Marco Gragnoli, from Studio Taxlex, comments on what this means for individuals.
"This flat-rate tax is an absolute novelty for the Italian tax system. With the aim to attract high net worth individuals, it follows the initiatives already in place in other countries such as the United Kingdom, Malta, Portugal and Jamaica.
In the application of the rule the Professional Analysis becomes essential in order to operate according to the 'cherry picking' mechanism. Only by analyzing the rates usually charged by foreign states in which the neo-resident produces the income you will be able to evaluate the advantages and disadvantages of including such jurisdictions within the flat-rate tax option arrangements.
The big novelty brought by the optional request, emerged in the instructions issued by the financial administration regulating the application methods for exercising the option, places the person concerned in having access to the new regime in the conditions to plan more wisely the taxation of the incomes.
Our experts are available to all interested persons, in particular the many foreigners who own properties in Tuscany and wish to explore this option."