Moving to Italy or moving overseas

The life of managers and HNWI is increasingly less sedentary. Knowledge of languages, globalisation of companies, and modern management models give rise to families being relocated with growing frequency. The family and tax aspects that need to be addressed are very articulated: from labour law to succession law to tax law.

Physical transfer is not always accompanied by the loss or acquisition of the status of Italian tax resident, with significant consequences in terms of disclosure requirements and tax burdens. Choosing the right time to move cannot ignore the tax implications and must be assessed on the basis of the bilateral agreements concluded between the country of origin and that of destination.

As from 2017, Italy promotes the transfer of managers and professionals overseas with a detaxation of 50% from working income in the first 5 years.

On the other hand, those living off the returns of their assets are invited to move to Italy, with the possibility of applying a lump sum tax of 100,000 Euros per year, instead of applying tax on all income of foreign origin. This tax regime may be extended up to 15 years. During the same period, the taxpayer who moved to Italy is not bound by an obligation to declare foreign assets and does not have to apply donation or succession taxes on assets that are not located in Italy. The assessment of taxation convenience and of the best ways to exploit this regime can be discussed with the specialists at Russo De Rosa Associati Firm.