The Italian authorities greenlighted on Wednesday a decree that sees doubling to 200,000 euros ($218,220) a 12 months the so-called “flat tax” utilized to earnings earned overseas by rich people who switch their tax residence to the nation.
The incentive, launched in 2017 underneath a center-left authorities, aimed to lure wealthy individuals to Italy within the hope that it could profit the economic system.
However, Economy Minister Giancarlo Giorgetti instructed reporters Italy was now in opposition to the thought of nations competing with one another to supply “fiscal favors” to the rich.
The authorities’s determination may make a small contribution to bolstering Rome’s public funds as Prime Minister Giorgia Meloni prepares a 2025 funds geared toward narrowing the nation’s large fiscal hole.
One high-profile beneficiary of the scheme was Portuguese soccer star Cristiano Ronaldo, who moved his tax residence to Italy between 2018 and 2021 when he performed for Juventus.
Giorgetti stated some 1,186 taxpayers had taken benefit of the flat tax, whereas Italy’s audit courtroom has estimated that between 2018 and 2022 taxes paid underneath the scheme amounted to 254 million euros.
The EU criticized the measure as unjust and detrimental to state accounts.
“The high-net-worth individuals regimes of Greece and Italy are … the most harmful because they offer large exemptions to extremely rich individuals,” the bloc’s Tax Observatory stated in its Global Tax Evasion Report this 12 months.
Source: www.dailysabah.com