The Italian Council of Ministers has approved a decree-law that introduces various “urgent fiscal measures.” One of these measures is to increase the replacement tax on income earned abroad under the flat-rate regime for individuals who transfer their tax residency to Italy from €100,000 to €200,000 per year.
The flat-rate tax applies for the first 15 years after acquiring Italian tax residency. The increase will apply to new residents once the decree-law comes into force.
The change will not apply to existing residents taxed under this regime.