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October 22, 2019

Millionaires around the world move to Italy attracted by low tax rates

ItalyWealthy people from Russia to Norway and the US are increasingly moving to Italy to take advantage of the low tax rates. Trying to raise capital, Italy launched a new measures last year, allowing wealthy people staying in the country to pay a flat tax of 100,000 EUR per year, regardless of their income. About 150 people, including some with a fortune of several “hundreds of millions” have used the measure.

“We have people from the UK, Switzerland, Russia, the United States – the usual suspects”, said the Chief of Staff of the Italian Minister of Economy and Finance, Fabrizio Pagani. “But we also have Norwegians and a few Danes, and do not necessarily have to be financiers. Some are collectors of art. We are talking about many abd very wealthy people”, added he.

Italy, which is experiencing difficulties with its recovery after years of recession, is trying to attract wealthy foreigners to support the economy with investment, consumption and fresh capital. Countries like Portugal are already succeeding in attracting wealthy individuals by offering tax benefits to increase their public finances. Italy, however, is currently facing political uncertainty because of the March 4 elections, which are not expected to deliver a clear winner.

Under the tax provisions, the individuals must move to Italy. Fabrizio Pagani said that Milan, Venice and the glamorous landscapes around the lakes at the foot of the Alps can become even richer. The number of millionaires who will take advantage of the opportunities is likely to increase “exponentially” as in Portugal.

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