Italy Flat Tax – New Tax Haven in Europe 2019
The right-wing populist Lega with his leader Matteo Salvini won the election by far on 26 May 2019. There is no doubt: the Lega will be the strongest political force in Italy. The new leaders are convinced that the new Italy Flat Tax Regime will help the Italian economy and create a new tax haven.
Lega Nord is a strong promoter of the new Italy Flat Tax Regime, while the coalition partner “5 Stelle” torpedoed the application of the Italy Flat Tax Regime until the last elections. Today, wealthy new residents from all over the world are lured to move to Italy in a new tax haven with an incredible tax gift.
In one shot, the Italy Flat Tax Regime will abolish the taxation of all the income and wealth generated outside Italy against a flat tax of 100’000 EUR only; despite the amount of income. There are no reporting obligations for offshore bank accounts. There is no duty to file a tax declaration for offshore assets. The new Italy Flat Tax Regime will automatically legalize undisclosed offshore assets in Italy (by virtue of law).
In this article, you will discover the tremendous tax benefits making Italy the new tax haven for Non-European Citizen. Simple tax comparisons with USA, China, South Africa, Jordan, Russia and Brazil will show how substantial such Tax Saving can be.
Saving tax has never been so easy. Combine the Italian lifestyle with a low tax bill by moving in a new Tax Haven located in the center of Europe.
Autor: Enzo Caputo
Banking Lawyer since: 1986
Position: Founder & CEO of the
Boutique Law Firm Caputo & Partners
Last Update: 02.07.2019
- Definition Golden Visa & Italy Flat Tax Regime – in simple terms
- Advantages of the new Tax Haven in Italy
- The Big Tax Comparison
- Special Status & Benefits of “Campione d’Italia“
- Advantages that only Campione d’Italia can offer
- Advantages of Switzerland you can take benefit of if you move your residence to Campione d’Italia
- Fictive Residence in the Tax Haven – Important Notice!
- The process: step by step
- How to buy a House in Italy (Apartment or Villa)
1. Definition Golden Visa & Italy Flat Tax Regime – in simple terms
A “Golden Visa” is the right of taking a permanent residence for wealthy people against:
- a substantial flat tax payment or
- an investment in real estate in under-developed areas or
- a donation of a specific amount of money to the government.
Foreigners from 168 countries who move their main residence to the new tax haven will receive an “EU Golden Visa”, a permanent residence permit if they simultaneously apply for the Flat Tax Regime with a lump-sum taxation of 100,000 EUR per year.
Explained in simple terms
International entrepreneurs, sports stars and wealthy individuals (High Net-Worth Individuals, better known as HNWI) from all over the world will be entitled to benefit from a privileged Flat Tax Regime in Italy. In exchange of 100,000 EUR Flat Tax per year, they can move to Italy and receive a permanent residence permit.
This means that you will pay exactly 100,000 EUR in taxes to the Italian State every year and your income and wealth generated outside Italy will be tax-free, regardless of how much you earn. The flat tax remains invariable despite the amount of income.
The football superstar Cristiano Ronaldo moved to Italy with the new Italy Flat Tax Regime. With this tax-saving model, he’s total income generated outside Italy remains untaxed.
The best part is that all types of income and assets generated outside of Italy are automatically and legally taxed (by virtue of the law), regardless of the level of income and wealth.
Professionals and retiring businesspeople accessed to the attractive tax-saving model since 2018, coupled with a so-called “EU Golden Visa” which is a visa-free travel permit to the Schengen Countries. The visa-free access to the Schengen Countries makes the Italy Flat Tax Regime even more attractive for Non-EU Citizens.
In particular, economically desperate EU countries are now attracting wealthy taxpayers with permanent residence permits combined with tremendous tax benefits (Golden Visa) to reanimate the Italian economy. As the Lega leaders have reached the absolute majority in Italy on 26 May 2019, they ensured a fast handling with VIP Fast Track Service for our clients. We received privileged access to a dedicated representative inside the Italian Tax Agency (Agenzia delle Entrate). Lega will help and defend the Italy Flat Tax Regime against all future enemies, including some high-level politicians from the EU.
Unlike other Golden Visa Programs such as in Portugal, Spain, Greece, Malta, Cyprus, where only husband, wife and children are eligible, in Italy, the extended family circle can move to Italy with the Italy Flat Tax Regime. This privilege can very attractive to big families and clans. With an additional lump-sum tax of 25,000 EUR per extended family member (grandfather, brother, uncle) the entire clan can move to Italy. Such a benefit can be found in Italy only – the new Tax Haven.
2. Advantages of the new Tax Haven in Italy
All types of taxation relating to all types of income and assets outside Italy are covered by the flat-rate tax of EUR 100,000 per annum:
Campione with View to Lugano
Income earned in Italy is subject to ordinary taxation (no tax haven). Income and capital gains from qualifying holdings participations are subject to Flat Tax Regime only after 5 years. You can therefore not move quickly to Italy, sell your business tax-free and move away from Italy. Only 5 years after the establishment of your residence, you are legally allowed to sell your business tax-free.
However, anyone who settles in the Italian border region with Switzerland may work in Switzerland, for example with Swiss companies or self-employed, and generate income that is covered by the Italy Flat Tax Regime. The lump sum taxation scheme in Switzerland is intended for retirees. The spirit of the Swiss law is tailor-made to the needs of retirees. Therefore, professional business activities are prohibited in Switzerland – not so in Italy. The spirit of the law of the Italian Flat Tax Regime makes Italy a new tax haven similar to the UK Resident Non-Dom Status.
The Lump-sum Taxation Regime in Switzerland requires assets of at least CHF 10 million to be disclosed to the Swiss tax authorities. The Italian Flat Tax combined with the Golden Visa in Italy works regardless of the number of assets and does not require investment in real estate, as imposed by almost all other Golden Visa countries.
The privileged status offered by the new Italian Tax Haven is valid for 15 years. After 10 years you can apply for the Italian passport.
All 168 nationalities are welcome if they have not lived in Italy for the last 10 years.
Visa-free access to all Schengen countries (EU countries, incl. Switzerland)
The new tax haven in Italy offers Italian lifestyle combined with a high living standard.
3. The Big Tax Comparison
3.1 Italian Flat Tax Regime vs. Tax Impact in China & USA
Flat Tax Regime in Italy | Taxation in China | Taxation in USA | |
---|---|---|---|
Taxable Income | 1.000.000 | 1.000.000 | 1.000.000 |
Income Tax Rate | 0% | 45% | 37% |
Income Tax | 100.000 | 450.000 | 370.000 |
Tax Savings with Italy Flat Tax | -350.000 | -270.000 |
3.2 Italian Flat Tax Regime vs. Tax Impact in Russia & South Africa
Flat Tax Regime in Italy | Taxation in Russia | Taxation in South Africa | |
---|---|---|---|
Taxable Income | 1.000.000 | 1.000.000 | 1.000.000 |
Income Tax Rate | 0% | 13% | 45% |
Income Tax | 100.000 | 130.000 | 450.000 |
Tax Savings with Italy Flat Tax | – 30.000 | -350.000 |
3.3 Italian Flat Tax Regime vs. Tax Impact in Jordan & Brazil
Flat Tax Regime in Italy | Taxation in Jordan | Taxation in Brazil | |
---|---|---|---|
Taxable Income | 1.000.000 | 1.000.000 | 1.000.000 |
Income Tax rate | 0% | 43% | 55% |
Income Tax | 100.000 | 430.000 | 550.000 |
Tax Savings with Italy Flat Tax | -330.000 | -450.000 |
3.4 Swiss Lump-sum Taxation Regime vs. Italy Flat Tax Regime
Even with the Swiss Lump-sum Taxation Regime in Switzerland Italy can take up the race thanks to the privileged status as a new Tax Haven.
The Lump-sum Taxation in Switzerland requires minimum assets of CHF 10,000,000 and professional activities are prohibited. Italy has no rules in this regard.
Those who settle in the frontier prayer can live in Italy and do tax-optimized business in Switzerland. The money earned in Switzerland is also covered by the Italian Flat Rate Regime and therefore taxable at 0%.
Italy Flat Tax | Lump-sum Taxation in Switzerland (Canton Zug) | |
---|---|---|
Taxable Income | 4.000.000 | *1.000.000 |
Income Tax Rate | 0% | 22,86% |
Income Tax | 100.000 | 228.600 |
Movable Property | 5.000.000 | 5.000.000 |
Movable Property Tax Rate | 0% | 0,40% |
Movable Property Tax | 0 | 20.000 |
How much you will pay | 100.000 | 248.600 |
Tax Savings with Italy Flat Tax | -148.600 |
*The Swiss Lump-sum Taxation reduces the taxable Income from 4.000.000 down to fictive 1.000.000 only!
4. Special Status & Benefits of „Campione d’Italia“
View from Lugano to Campione (over Sea left side)
The recent elections in Italy of 26 May 2019 were won by the Lega by far. The Lega supports the Golden Visa Program with the Italy Flat Tax Regime for the new wealthy residents in the new tax haven Italy. That’s a change of course.
Negotiations with the Italian tax authorities were not always easy. Everything has changed since the new leaders are in power. The Golden Visa Program is politically supported. We negotiated privileged access to the Italian tax authority, the “Agenzia delle Entrate”. For our demanding clientele, we negotiated a VIP treatment with a Fast Track Procedure with the competent tax agency in Italy. We exclusively have an assigned tax commissioner of “Agenzia delle Entrate” as a competent contact person.
If you want to be active as a businessman doing international business, you can enjoy all the advantages of Switzerland with our Italy Flat Tax Program offering the residence in “Campione d’Italia” and at the same time doing business in Lugano, Switzerland. Due to the Italian Flat-Rate Regime your business income generated in Lugano, Switzerland, will be tax-free. Due to the Schengen Status, Non EU Citizens can act as director in their own Swiss company domiciled in Lugano. They will directly control their assets without being subject to interposed intermediaries.
How it works, I will show you now:
Campione d’Italia is an enclave of Italy located in Switzerland in the privileged South-East location (sunnier than Lugano) on Lake Lugano opposite Lugano. In a few minutes, you can travel by solar ferry or car from Campione d’Italia to Lugano.
There is no customs station between Campione d’Italia and Switzerland.
Approximately 200 new luxurious apartments with additional services are being created exclusively for our international clientele in Campione d’Italia. Campione d’Italia becomes the new Tax Haven of Europe and an important international business destination.
Campione d’Italia, with the support of the Italian authorities, the political special status and the upcoming investments, is once again becoming the pearl of Lake Lugano.
Enjoy Water Sport with Friends
5. Advantages that only Campione d’Italia can offer:
6. Advantages of Switzerland you can take benefit of if you move your residence to Campione d’Italia
Campione ➡️ Lugano (12 km ~18min)
Campione ➡️ Airport Mailand-Malpensa (74,7 km ~57min)
Campione ➡️ Airport Mailand-Linate (88 km ~70min)
Campione ➡️ Airport Lugano-Agno (14,5 km ~20min)
Campione ➡️ Milano Central Railway Station (77,4 km ~75min)
Train
Lugano ➡️ Mailand (~83min)
The train starts every 60min
7. Fictive Residence in the Tax Haven – Important Notice!
It is important that the applicant makes his real residence in Campione d ‘Italia outwardly visible. This is even truer in the absence. We are happy to help with House Sitter Services. It is very bad if, for example, you never leave the mailbox empty in your absence. Anyone passing by will say that they are away and never physically present.
Please be advised that your place of residence can have a tremendous impact on your financial affairs (offshore bank account, taxation, privacy, asset protection etc.). We will advise you how to make sure that you will be in a position to always document your physical presence with documentary evidence (utility bills showing water/electricity consumption).
In case of need, minor utility bills can help a lot to solve a multi-million tax dispute!
Above all, the new residence in the tax haven should withstand the beginning of an occasional review by the local police. A pure postal address is not enough. However, this does not mean that secondary residences and holiday homes outside Italy are forbidden.
The problem is not the presence of the resident in Campione, but whether the country of origin releases the emigrant from his existing tax liability. Many countries have introduced ever stricter exit taxation, which is being vigorously put into practice.
Taxes levied in other countries on the basis of local tax laws cannot be compensated by the Italy Flat Tax Regime.
It can’t be excluded that the Italian Tax Authorities (“Agenzia delle Entrate”), respectively the Campione Police Station, will check in the first few weeks after having registered the residence whether the new resident has effectively established himself in Campione. The prescribed annual residence time in Italy is – as in all OECD countries – 6 months.
However, it is by no means in Italy’s interest to count the number of nights spent on Italian soil to check whether there is at least 182 days of physical presence.
After the residence permit has been issued, no further reviews of the length of stay will normally be made. However, it is strongly advised not to set up a mere mock residence. Like any free resident in a free country, you are free to conduct professional and private travels according to your needs and discretion.
Rather, the country of origin will check whether the “Emigrant” stays longer than 6 months in the country of origin, and thus there continues to be a tax liability. It is recommended to give up the former domicile (house/apartment) in the country of origin. All easily visible bridges to the country of origin must be broken off.
We have decades of experiences with international taxation and the consequences of fictive places of residence. We will advise you how to legally circumvent the tax traps. Swiss banks will reject you as a client in case of a fictitious residence. We will help you with the maintenance of your permanent residence, in case you will be absent for a longer period of time.
Campione Casino
8. The process: step by step
Campione Panorama View
- You will contact us
- We will send you the form “Client Information Sheet” (CIS, 1 page) and the form with the Power of Attorney (1 page) for organizing the new residence with Flat Tax Regime in the new Tax Haven.
We need the following documents from you:- Scanned Passport in coloured copy with a high resolution
- Form (Client Information Sheet, CIS), 1 A4 page with information on name, surname, date of birth, address, gender, passport number, contact information (We will send you the empty form CIS via email).
- Signed Power of Attorney for Campione d’Italia (or any other location in Italy) for the Flat Tax Regime in Italy.
- Afterwards, you will the Service Agreement in English (1 page).
We offer the following 4 Services:
- Relocation with the Italy Flat Tax Regime in Italy with the Agenzia delle Entrate.
- Registration of residence, especially with the municipality of Campione d’Italia.
- We will arrange for you to buy or rent a suitable accommodation in Campione d’Italia or in any other municipality in Italy.
- We help you with Swiss Bank Account Opening for Asset Protection.
You will sign and send back the Service Agreement.
The application for the Permanent Residence Permit in Campione d’Italia takes about 8 weeks.
VIP Fast Track Service
In case of urgency, we are in a position to provide you with a permanent residence permit and Italy Flat Tax Regime within 14 days (upon specific request only). The Fast Track Service can be ensured because of our close connections to a dedicated Tax Officer and Political Leaders.
The Residence Permit in Campione d’Italia offers access to 168 countries, including UK and Canada without visa requirements. For the USA, the regulations are changing!
We help you with the international tax planning with the new residence in the Tax Haven Campione d’Italia. More specific advantages will be disclosed in the occasion of a super-confidential face-to-face meeting only.
We assist in selecting and arranging one of the new luxury residences in Campione d’Italia, or elsewhere in Italy. We help you move fast to the new Tax Haven, from A to Z.
Best Wealth Management and Asset Protection Services with Swiss banks and asset managers are an integrative part of our core services.
The Lega Leaders are promising new revenue and international impetus for the Italian economy from the new tax haven. In particular, the bankrupt municipality of Campione d’Italia (including the bankrupt Casino) will be supported with a construction project with 200 luxury apartments for new residents with Golden Visa.
The new Tax Haven project will create 900 new jobs. The political Leaders want to finally bury the old casino, mafia and money laundering image in Campione and initiate a course change with 200 luxury residences. The new Lega leaders will turn Campione d’Italia into an international Business Hub.
9. How to buy a House in Italy (Apartment or Villa)?
We have a network of war-proved relations with trustees and real estate agents in Italy. We will find a dream villa for you. If you want to buy a house safely in Italy, let us advise you. Our “Commercialisti” (tax professionals) will accompany you from A to Z. Our team members accompany you during sightseeing and contract negotiations.
We offer luxury properties throughout Italy.
We offer creative legal advice and razor-sharp tax advice for every Tax Haven in the world. Golden Visa program and Italy Flat Tax Regime are always interesting for international business people for mitigating the tax impact. We know our way around and implement your tax-saving model in the new Tax Haven. If buying a house in Italy should not end in a risky adventure, then call us now or write an email.