"Res non Dom": New system of rewards for individuals who transfer their residence in Italy

The national legislator by Budget Law 2017 (L. 232/2016) introduced a rewarding tax system, for individuals, and not Italian, who establish their residence in Italy with a purpose of attracting new foreign capital in Italy . That system provides for the application of a substitute tax IRPEF due on income earned abroad to an extent fixed amounts to EUR 100,000 per year (regardless of the value of foreign assets) and an ordinary taxation only for income source Italian.

Individuals who have had a residence abroad for at least 9 of the 10 years preceding the application as well as those who have never been resident in Italy before, will be able to join already for the year 2016. Also, people who join the aforementioned tax system wont’ be bound by the fiscal monitoring obligations and won’t be subject all'IVIE and all'IVAFE. It should be noted, finally, that in case of inheritance or donation if the deceased has adhered to the regime inheritance tax / donation will be due only on existing assets, Italy at the time of event occurrence (death-liberal) and not on the foreign goods.

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