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Italy: New tax and immigration rules

Introduction of new tax and immigration rules to attract foreign workers and investors

The Italian Government draft 2017 Budget Law includes various measures proposed to encourage individuals to move to, and invest in, Italy. These measures will be introduced to promote Italy as an attractive destination for workers and capital.

The law will now be debated in parliament and is expected to be approved by the end of the year.

The draft of finance law includes three innovations by introducing:

  • A new “residents non-domiciled” tax regime.
  • Extension of the special tax regime for inbound employees to the self-employed workers.
  • Golden Visa for foreign investors.

Resident non-domiciled tax regime

This new legislation will introduce a key change to the general principle of worldwide taxation for Italian tax residents. The new requirements suggest that an individual, who meets certain conditions, can be considered as resident but non-domiciled in Italy. Therefore taxpayers will pay usual taxes upon income generated in Italy and a single, fixed tax payment of EUR 100,000 to cover taxes due on non-Italian income. For further details regarding the “Resident non-domiciled” tax regime, please contact our immigration team.

Golden Visa for foreign investors

The Budget Law will introduce a new visa in an effort to enhance investor’s opportunities and these visas will be issued without being subject to quota restrictions.
Investor’s visas will be available to qualifying foreign nationals intending to reside in Italy and willing to commit to any of the following:

  • Investment of a minimum EUR 2,000,000 in government bonds and remain invested for at least two years
  • Investment of a minimum EUR 1,000,000 in Italian company shares and remain invested for at least two years
  • Investment of a minimum EUR 1,000,000 in the form of a charitable gift, to sustain a project of public interest in the areas of culture, education, regulation of immigration, scientific research, and recovery of cultural and environmental assets.

In order to obtain the new Investor Visa, foreign nationals must meet the following criteria:

  • Demonstrate legal or beneficial ownership of a sum of money equal to the amount of the investment to be made in Italy. The sum of money must be at the disposal of the investor and it must be transferable
  • Written assurance of their commitment to use the applicable sum to make an investment, or a charitable gift, that meets the criteria set out above and to make the investment no later than three months after entry to Italy
  • Demonstrate they will continue to have additional income of an amount higher than the minimum amount for an exemption from healthcare contributions (approximately EUR 8,500 per year).

Additional immigration updates are expected to follow but it is vital employers understand how the new rules will affect the tax position of the current employees located in Italy, as well as future assignments into or local hires into Italy.

More information

If you have any questions, feel free to contact our Immigration team at immigration@sterling.com or call +44(0)20 8836 3359.

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