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Italy has decided to double the annual flat tax for wealthy individuals who choose to make the country their new home. This tax, often dubbed the “billionaires’ tax” or “the footballers’ scheme,” will now be €200,000 per year, up from the previous €100,000.
This special tax arrangement was introduced in 2017 with the hope of attracting affluent individuals to Italy, with the idea that they would spend generously and boost the local economy. The tax allows new residents to be exempt from other taxes on income earned abroad, as well as on gifts and inheritance, for up to 15 years. It’s been particularly popular among high-profile figures like Portuguese football star Cristiano Ronaldo, who moved to Turin in 2018.
However, the tax hasn’t been without its critics, especially among locals who have seen property prices soar due to wealthy expats buying up real estate. Italy’s Economy Minister, Giancarlo Giorgetti, noted that the country is no longer interested in competing with other nations to offer excessive tax breaks or discounts.
If Italy is no longer on your wish list
and you’re still exploring options for a new tax residency that also offers the flexibility to relocate your entire family, Malta is worth serious consideration.
Not only does Malta provide a tax-efficient environment, but it also gives you the option to physically relocate your family, should you choose to do so.
Here’s why Malta stands out:
- Remittance-Based Taxation: You’re only taxed on income brought into Malta, allowing you to save significantly on overseas earnings.
- 0% Tax on Non-Remitted Foreign Income: Income that remains outside Malta is entirely tax-free.
- Low Tax on Remitted Income: Income remitted to Malta is taxed at just 15% or a flat €15,000 per year, making it one of the lowest rates in Europe.
- 0% Capital Gains and Inheritance Tax: Enjoy tax-free capital gains and no inheritance tax, whether or not the funds are brought into Malta.
- Family-Friendly Relocation: Malta offers residency options that extend to your entire family, giving you the freedom to relocate together or maintain your current living arrangements while benefiting from Malta’s tax advantages.
With these benefits, Malta provides a compelling mix of tax efficiency and family flexibility, making it an excellent choice for your new tax residency.
Contact us now to learn more!
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