Starting to highlight the legal and fiscal regimes that make Italy highly competitive in meeting the needs of foreign UHNW and Ultra-Wealthy individuals who decide to invest in luxury real estates, Italy has a full set of rules which are giving specific regimes to people who relocate. 

Starting to focus on 3 points why Italy attracting ultra-wealthy individuals and families.

Italy for attracting HNW and UHNW

The New Tax Res regime (NTR) is a flat tax covering the whole of foreign income and indirect taxation for individuals who relocate to Italy for the first time considering the last 9 out of ten calendar years. 

The NTR si applicable to all family members and the first applicant will pay 100,000€ per year (the other members will pay 25,000€ each) for a maximum of 15 years. 

Every foreign incomes can be remitted to Italy without any further tax consequences.

Italy for attracting talents

To attract talents, the Italian fiscal regime is applicable to employees, self-employed, and entrepreneurs moving to Italy after being non-tax resident in Italy for at least 2 years. 

The new tax regime is essentially carving out a percentage of the tax base for personal tax purposes (with capped social contributions). 

If you are moving to the south of Italy, this will gives a 90% discount (with an effective tax rate of less than 5%) and in the other parts of Italy of 70% with an effective rate of 14% more or less). 

Specific requirements are set out and particular rules are applicable to athletes moving to Italy (like football players).

Italy for attracting pensioners

In regarding of foreign pensioners wish to relocate to Italy, from countries with a full exchange of information, they will pay only 7% taxation on any income as long as they move to small villages in the South of Italy, like the Borghi Italiani.

To understand the legal and immigration requirements, in order to enter Italy, first of all you will need an EU passport. 

For those without an EU passport, it is possible to start an investor visa program. 

With the Investor Visa, a foreigner can achieve the Schengen Visa requirements following a procedure which is to commit to and then execute an investment in Italian Treasury Bonds at least 2M€, Public Equity companies of 500K€, or innovative companies for 250K€, or to make an investment of at least 1M€ in philanthropic projects associated with the Italian Art Bonus. 

This is a relatively smooth procedure that takes around 3 months. 

It is an essential step in order to gain a legal status that will allow the benefit of the Italian tax residence to take effect.

In a nutshell, in order to enter Italy from a fiscal aspect, you must bypass the ordinary tourism visa and gain a legal immigration status which enables the individual to become an Italian taxpayer with all the associated benefits, including the application to the DTA treaty network signed by Italy.