In detail
The Law no. 143 of 7 October 2024 (“Law”), published on the Italian Official Gazette of October 8, 2024, has converted into law of the Law Decree n. 113 adopted by the Italian Government on 9 August 2024 and has confirmed without amendments the law provisions contained in Article 2 related to the “flat tax” applicable to foreign income and gain derived by new residents opting for the tax regime set by article 24-bis of the Italian Income Tax Code (“Flat Tax Regime”).
In particular, the Law confirms the increase of the “flat tax” from EUR 100,000 to EUR 200,000.
The Law also confirms the grandfathering provision that limits the application of the tax increase to only those individuals who have transferred their residence to Italy within the meaning of the Italian Civil Code after 9 August 2024, i.e., the date that the law decree entered into force. Pursuant to Article 43 of the Italian Civil Code, the residence is the place where the person has his/her habitual abode.
As a result, the tax increase will not affect those who, as of 10 August 2024, have already transferred their residence to Italy, both those who have already opted for the application of the flat tax in the tax returns already filed (more than 1,100 in respect to fiscal year 2022, according to data from the State General Accounting Office) and those who will elect for the Flat Tax Regime when filing their tax returns for fiscal years 2023 or 2024.No additional changes has been brought by the Law to the Flat Tax Regime. Therefore, 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.
