Italy: Favorable tax regime for non-domiciled residents | KPMG | GLOBAL
Share with your friends

Italy: Favorable tax regime for non-domiciled residents, to encourage investments

Italy: Favorable tax regime for non-domiciled residents

The 2017 budget law introduces new arrangements that are intended to attract capital investments to Italy.


Related content

The budget law measures provide for:

  • A favorable tax regime on income produced abroad by new non-domiciled residents—this includes a “flat rate” tax of €100,000 (€25,000 for the taxpayer’s relatives) on certain foreign income including income from rental activities, from capital, from employment, and corporate income (with or without a permanent establishment)
  • An exemption from certain reporting requirements with respect to the wealth tax
  • “Ordinary taxation” with respect to capital gains from “qualifying holdings” realized in the first five fiscal years and also on Italian sourced income
  • Inheritance and gift tax on Italian assets only (not on assets held abroad)
  • Simplified processes for visa and residency permits for foreign investors

The new regime, once elected, is available from fiscal year 2017 and will apply for 15 years. The election for the special tax regime can be revoked at any time, and the special regime tax treatment will terminate immediately if any tax is not paid, or is only partially paid, by the due date for remittance of the tax.

Procedures to implement the new regime are expected to be provided in a circular from the Italian tax authorities once the budget law is enacted.


Read a January 2017 report [PDF 176 KB] prepared by the KPMG member firm in Italy: Non-domiciled residents

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal