In detail
The Law Decree contains a grandfathering provision that limits the application of the tax increase only to those individuals who have transferred their residence to Italy within the meaning of the Italian Civil Code after 10 August 2024, the date that the Law Decree entered into force. Pursuant to Article 43 of the Italian Civil Code, "residence" is the place where the person has their habitual abode.
As a result, the tax increase will not affect those who, as of today, have already transferred their residence to Italy, and both those who have already opted for the application of the "flat tax" (more than 1,100 in respect to fiscal year 2022, according to data from the State General Accounting Office) and those who will do so in 2025 when filing their tax returns for fiscal year 2024.
The EUR 25,000 amount of the flat tax due by the family members to whom the main taxpayer may extend the beneficial tax regime remains unmodified, as well as all other rules governing the "flat tax" regime.
The Law Decree needs to be converted into law within 60 days from its publication by the Italian parliament, which may confirm, amend or reject the new provisions of the law.