In the wake of Brexit the wealthy and prosperous are considering where to keep their riches after the UK leaves the EU. As it turns out, there are many countries keen to have post-Brexit expatriates as their residents.
Some savvy EU members are already exploring ways to increase their wealthy expatriate population. They are eager to attract affluent professionals and moneyed retirees from abroad. The key is in taxation.
We have recently written about Portugal’s changes in luxury property tax rates. Now Italy has made a move to compete for wealthy expats.
Last month Italy announced a new tax regime aimed at luring mega-wealthy individuals to make the country their home.
The new policy applies to any nationals (including Italians) as long as they meet certain criteria.
- They must have lived outside the country for at least nine years
- Have foreign income
- Buy a property in Italy
- Live in the country for at least half a year
If a candidate meets these conditions, his or her foreign income can be free from Italian tax in exchange for €100,000 a year.
The tax breaks, intended to boost investment and consumption, can be used for up to 15 years.
This is happening just when the UK is about to bring an end to a similar policy. An international law firm Withers commented on Italy’s move:
Italy might be seeking to woo high net worth individuals looking for a new home following Brexit or deterred by the tightening of rules in the UK.
Experts say that many wealthy post-Brexit expatriates will take up the offer.
There will be a lot of people who rather than being in the cold in London would rather be in the sun in Italy.
Philip Marcovici, a Hong Kong-based expert on wealth and taxation
The new taxation regime will also make it simpler to report overseas income.
Read the full story in the Financial Times