Italy plans to raise the fixed tax on foreign income by 50% for wealthy foreigners who move to the country on preferential terms. Bloomberg reports this with reference to informed sources.
According to the agency, the annual payment may be increased from 200 thousand euros to 300 thousand euros as part of the budget plan for 2026. The Cabinet of Ministers may approve this decision in the near future.
This measure will be one of the latest elements of the budget package of the government of Giorgi Maloni, which is looking for ways to increase revenues to finance tax breaks for citizens with average earnings, Bloomberg notes.
This will be the second increase in the rate since the program was launched in 2017: initially, the tax was 100 thousand euros, and last year it was doubled.
A flat rate of €200,000 per year exempts new residents from paying taxes on foreign income, gifts, and inheritances for 15 years. All profits earned directly in Italy are taxed under the general terms.
Since its introduction, the program has attracted thousands of wealthy foreigners to Italy, from hedge fund managers and former CEOs to Middle Eastern billionaires. Milan has been particularly popular, where the abolition of the non-dom regime in the UK has sparked a new influx of wealthy immigrants.
Italy’s finance ministry declined to comment to Bloomberg.