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2025-10-17 20:13:55
Italy Plans to Raise Flat Tax on Wealthy Foreigners to €300,000: According to the Financial Times, Italian Prime Minister Meroni's government plans to raise the flat tax on foreign income of wealthy individuals relocating to Italy by 50% to €300,000. If approved by parliament, this would deal a significant blow to wealthy expatriates seeking to escape high tax burdens elsewhere in Europe. Over the past decade, Italy has attracted a large number of wealthy global residents with its quality of life and tax incentives. This policy allows them to pay a fixed tax on their global income. However, the plan is controversial among ordinary Italians, with many accusing it of driving up house prices and exacerbating the housing shortage. Finance Ministry officials said on Friday that the proposal has been included in Italy's draft 2026 budget, which also plans to reduce taxes for middle- and low-income earners. If passed, this would be the second time the Meroni government has increased this flat tax rate. Last year, the flat tax on new residents was raised from €100,000 to €200,000.
