If you’re planning to move to Italy and take advantage of the 7% flat tax benefit, I have some great news my friends that I am sure you are going to love.
Let’s first have a quick reminder of what the 7% flat tax scheme is.
In 2019, Italy implemented a 7% flat tax regime for new arrivals who receive government pensions or private pensions from a foreign country. This law allows pensioners who relocate to certain regions in Southern Italy with fewer than 20,000 inhabitants or select towns in Central Italy with fewer than 3,000 inhabitants, to pay a flat tax of 7% on their foreign earned income while reaping the benefits of la dolce vita in Italy.
The 7% regime is valid for a duration of ten years after which the regular taxation rules in Italy apply. For many foreigners, the savings are substantial.
However, many people who need the savings have been disappointed to learn that their chosen dream location further up the boot, was not part of the 7% scheme.
Well, I’ve got some good news for you.
Recent updates to the law have changed the qualifying criteria for some Central Region municipalities to benefit from the flat tax. In the past, only a selection of small comune that had under 3000 population were included in the law.
These towns were designated to be affected by the earthquakes and were in a higher-risk seismic zone. They were also quite remote, had very few services, and were not attracting new residents to the region as hoped. In fact, only 50 people have elected to the tax regime in these areas since it was implemented. This is less than a success.
Therefore, the government has made some changes and has just announced that they have increased the population threshold to 20,000 residents (from 3000) which opens several amazing places in Marche, Lazio, and Umbria. They are still in seismic zones, but very habitable and some extremely popular for tourists.
I won’t keep you waiting any longer.
Happy house hunting!
If you are looking for a new place to call home in Italy, be sure to visit us at www.smartmoveitalyproperty.com Our buyers and renters agency, that specializes in helping foreigners find their new home in Italy.,
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