Mexico: Curtis Italy – Tax Update – 2017

Italy introduces a preferential tax regime to attract high-net-worth individuals

With the Italian Budget Law for 2017 (Law n. 232 of 11 December 2016), a new preferential tax regime aimed at attracting high-net-worth individuals to Italy has been enacted. In essence, this "new residents regime" allows individuals who transfer their tax residence to Italy to opt for an annual flat tax of Euros 100,000 (for each fiscal year) on their non-Italian source income and/or gains.

The Italian Tax Agency has also recently released guidelines concerning the operation of this regime, notably the exercise of the option, its modification and revocation, as well as the payment of the flat tax.

I. Who Can Benefit from the "New Residents Regime"?

The option is reserved to individuals transferring their tax residence to Italy, irrespective of their nationality or domicile (i.e., it is available for both non-Italian and Italian nationals). Juridical persons cannot benefit from this favorable regime.

Individuals wishing to benefit from the "new residents regime" must have been non-tax resident in Italy for at least 9 out of the 10 fiscal years preceding the beginning of the validity of the option.

Another interesting aspect of this new provision is the possibility for the individual electing for the "new residents regime" to extend its application to family members. In this respect, it is important to highlight that:

  • the range of family members to whom the application of the tax regime can be extended encompasses spouses, sons and daughters, including sons-in-law and daughters-in-law (in absence of sons and daughters, the regime may be extended to close descendants), parents, including parents in-law (in absence of parents, the regime may be extended to close ascendants), brothers and sisters; and
  • in order to benefit from this tax regime, these family members must transfer their tax residence to Italy and must have been non-tax resident in Italy for at least 9 out of the 10 fiscal years preceding the beginning of the validity of the option.

II. Benefits of the "New Residents Regime"

Type of Income and Gains Concerned and Amount of the Flat Tax

The "new residents regime" enables opting for, in lieu of the ordinary Italian income tax, a flat tax amounting to € 100,000 for each fiscal year applicable to any income and/or gains of non-Italian source of the newly resident individual, regardless of the effective amount of such income and/or gains.

The only exception is represented by capital gains deriving from the assignment of "qualified participations" which, during the first five fiscal years when the option is applied, will still be subject to taxation in accordance with the ordinary Italian income tax rules. For these purposes, according to Italian law, "qualified participations" shall mean the shares or any other participation in the share capital or in the net worth of a company when such participation represents:

  • in case of securities traded on regulated markets, (i) an interest to which more than 2% of the voting rights is attached; or (ii) an interest of more than 5% of the share capital, regardless of the voting rights attached to it; or
  • in the other cases, (i) an interest to which more than 20% of the voting rights is attached; or (ii) an interest of more than 25% of the share capital, regardless of the voting rights attached to it.

It is worth noting that the "new residents regime" only covers non-Italian source income; therefore any potential Italian source income obtained by the newly resident individual will be taxed in accordance with the tax regime ordinarily applicable to Italian tax residents.

No tax credit is available for the taxes paid abroad in relation to the non-Italian source income and/or gains to which the individual has elected to apply the flat tax in Italy. The individual, however, may decide to exclude from the basis of the flat tax certain non-Italian source income and/or gains arising in one or more countries. This election may be made upon opting for the flat tax, or at any time during the maximum 15-year term of the regime. Excluded foreign income will remain subject to ordinary Italian income tax rules and may therefore benefit from the applicable tax credit.

Taxation of Family Members to Whom the Regime Has Been Extended

Family members to whom the regime has been extended shall be liable for an annual flat tax of Euros 25,000, instead of Euros 100,000, on their non-Italian source income and/or gains.

Deadline for the Payment of the Flat Tax

The payment must be made at one time for each eligible fiscal year covered by the flat tax within the deadline ordinarily applicable for the payment of the income tax balance.

Duration and Withdrawal

The option for the "new resident regime" is automatically renewed each year, up to a maximum of 15 years. Nonetheless, the individual who has opted for this regime is free to withdraw the option within the deadline for the filing of the tax return concerning any fiscal years following the fiscal year when the option has been exercised. This withdrawal can be effected by notifying the Central Tax Assessment Department (Direzione Centrale Accertamento) or by including a specific declaration in the tax return. The withdrawal can also be exercised only with reference to one or more family members to whom the individual concerned had extended the benefits of the regime.

The "new residents regime" option terminates in case of (i) non-payment or partial payment of the flat tax within the deadline; or (ii) transfer of the tax residence to another State or territory.

In the event an individual ceases to benefit from the "new residents regime," family members that were included in the regime will cease to benefit from it as well. Despite this, these family members can exercise a new (independent) option to become a "new resident" for the remaining time (up to 15 years from the date when the "original" option came into effect), and they can, in turn, extend the option to their family members.

III. How to Apply for the "New Residents Regime"

Individuals who meets the necessary requirements (see Section I) can exercise the option for the "new residents regime" with the Italian Tax Agency within the deadline for the filing of the tax return of the fiscal year when they transfer their tax residence to Italy or of the following fiscal year (e.g., for fiscal year 2017, by 30 September 2018). The Italian Tax Agency will then have 120 days to approve or deny the request and, if no answer is provided within this period, the request is deemed to have been approved.

The individual, before exercising the option, can file a query for an advance ruling with the Italian Revenue Agency (Agenzia delle Entrate) in order to obtain an assessment on the existence of the eligibility requirements.

IV. Final Considerations

It is advisable, for individuals wishing to exercise the option for the "new residents regime," to undertake a preliminary financial, tax and legal analysis before proceeding, in light of their assets and estate.

It would also be worth examining which jurisdictions should be potentially excluded from the regime and the family members to whom it would be convenient to extend the benefits of this new regime.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.