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Tax Residency in Italy and Non-Dom Status
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Since 1992, Feod Group has provided full legal support for relocation to Italy. The company includes international lawyers, with offices in Europe, the USA, and Ukraine.
High safety levels, a wonderful climate, the opportunity to provide children with a European education, and many other advantages have led many of our compatriots to choose Italy as a second home.
Currently, many entrepreneurs have an excellent opportunity to move to Italy for permanent residence, obtain tax residency status in Italy, and take advantage of the non-dom tax status benefits in Italy.
What is Tax Resident Status in Italy
A tax resident in Italy is an individual or legal entity subject to taxation in this country based on their place of residence, permanent location, or the registration place of a legal entity.
The main criteria defining a tax resident in Italy are:
Actual time spent in the country.
The center of personal or economic interests in Italy.
Having a permanent address in Italy.
Business ownership or a place of work in Italy.
Non-Dom Tax Status in Italy
Becoming a tax resident in Italy offers a unique tax benefit under the Non-Domiciled Resident status.
According to Law No. 232, dated December 11, 2016, the Italian government introduced a new tax regime for those wishing to relocate their tax residency to Italy – non domiciled resident.
On October 7, 2024, the Italian Parliament adopted Decree-Law No. 113, introducing important changes to the “Lump Sum Tax Regime” by increasing the fixed tax on foreign income from 100,000 to 200,000 euros for high-net-worth individuals.
Read more: Tax reforms in Europe 2024-2025: a review of country changes.
Non-Dom Tax Status is available to individuals who:
Have moved their tax residency to Italy (the maximum period for which non-dom status can be used is 15 years, and it can be canceled at any time by the taxpayer).
Have not lived in Italy and have not been tax residents in Italy for 9 of the last 10 years.
Have received official approval from the Italian tax authorities.
Advantages of Non-Dom in Italy
The main advantage of this law is the single annual tax on personal income for any declared income amounts received outside Italy as a fixed tax:
€200,000 tax on the main applicant’s income;
€25,000 tax on the income of each family member.
This tax benefit on personal income declaration is provided for a period of 15 years with the right of renewal.
Annual lump-sum tax payments replace the need to pay income tax, local taxes, and property taxes. Taxpayers are also exempt from certain tax and financial monitoring obligations. The Italian Controlled Foreign Companies (CFC) regime does not apply to foreign holdings held by an individual, and no tax credits are granted for any taxes paid abroad.
Another significant advantage is that the non-dom regime completely exempts inheritance and gift taxes on all foreign assets owned by individuals who choose to use this special regime.
Who Can Apply for Non-Dom Status in Italy
The Italian non-dom regime is available to all private individuals interested in moving to Italy. The program is available to people of any nationality, including Italian repatriates.
Applicant Requirements:
Mandatory confirmation of the legal source of funds;
No criminal record;
No entry refusals to any Schengen or EU country;
Proof of housing in Italy (12-month rental or ownership);
Confirmation of steady income and funds in a bank account.
How to Obtain Non-Dom Status in Italy
The first step to obtaining non-dom status in Italy is to apply for an Italian Residence Card.
After receiving the Italian Residence Card, a request for a preliminary decision is submitted to the Italian tax authorities, which includes:
Italian social security number;
Address of residence in Italy;
Information about the last jurisdiction in which the taxpayer was a resident before the start of the fiscal period when they chose to use the Italian tax regime.
Italian authorities must respond within 120 days (+60 under certain conditions).
Non-dom status in Italy can be canceled upon request and will be automatically canceled if the annual payment is not made.
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If you have any questions, please contact us.
Why clients choose Feod Group
Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.
The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.
Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.
We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting....
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting.