Newsalert - New taxation regime for foreign pensioners moving to Italy

Newsalert - New taxation regime for foreign pensioners moving to Italy

Condividi

Article 1 (273) and (274) of law no. 145 dated 30 December 2018 (the “2019 Budget Law”) amends the Italian tax consolidation act introducing a new favorable tax regime for individuals holding foreign pensions and moving their tax residence to Southern Italy (the “Inward Pensioners Regime” or the “Regime”).

The Inward Pensioners Regime shares its main rationale and features with the already existing regime for new resident individuals introduced in 2017 (the so called “HNWI Regime”, for further details, see Chiomenti’s newsletter no. 2/2017), allowing to derogate to the ordinary Italian personal income tax regime (“IRPEF”) and providing for the application of a flat tax at a 7 per cent rate on any foreign source income. Any domestic income will be ordinarily taxed.

Download the Newsletter edited by Chiomenti Tax Department on the issue

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