Why 784 HNWIs in 3 Years Became Tax Resident In Italy Opting For The € 100k Substitute Tax Fee

If you’re reading this article it means that every year you already have a family tax bill of € 100,000 and above. 

If you are collectively paying over € 100,000 within your family members, you should know that many others discovered this option earlier and proved that it’s more convenient.

It’s an objective fact. It works. 

This opportunity hasn’t just dropped from the sky in 2020. It’s actually been ongoing for a while and unknown by most. Now we can really confirm our predictions made three and a half years ago.  

It seems that higher-rate taxpayers owe higher bills every year to the tax authorities to be “fiscally” accepted. It’s absurd. There’s a lot of anger towards the politicians who could help but essentially do nothing. As a consequence, people panic.

The loud sound of entrepreneurs falling, suicidal because of tax debts – while some others set fire to their tax authority offices thinking that will solve the problem. 

 

Soon, Another Small But Fierce Fire Is Seen Burning And Crackling 

The truth is that you pay a lot (sound familiar?) and you’re penalized by your high-profile. 

Obviously, just because it is a doable opportunity, it doesn’t mean it’s an opportunity for you 

And, because of its financial requirements, it’s available only to a limited number of applicants 

But, it’s worth your consideration if you feel the tax pressure. 

Does your family know that you’re a higher-rate taxpayer?

How do you justify a small last-minute gift to your wife or for your children’s birthday instead of the usual larger celebration? 

This solution is for you if you can’t sleep because you can hear the noise of the average person whispering his frustrated opinion or because you keep hearing the tax pit bulls barking all night.

Possibly you try hard to pay less taxes every year, maybe by scanning and stalking other businessmen. More than once your tax advisor suggested hiding your profits or to reducing them by spending more before the end of the year…to pay less taxes. Or, he says giggling “First I must blindfold you. Let me do it…” and other bizarre suggestions that can’t be printed here for decency reasons! 

Paying more taxes due to a lack of planning should only be shared with your confidential business circle so that others won’t think that you’re a beginner 

Certainly, tax authorities in some countries are quickly following your group of well-off and fast-growing businessmen whose only fault is doing their job well. So, they found in their way corrupted but authorized individuals intimating to “empty your pockets” 

With this sense of discomfort, it’s humanly accepted to become tense a few minutes after entering a tax conversation or after staring at the tax return papers you have to sign. You have to close your ears while hearing the subliminal message “sit down and silence”. 

It’s like when an airplane has a sequence of turbulence while you are crossing the ocean, knowing that it will continue for several hours. There’s something not functioning as it should and it makes you feel uncomfortable.

Most people think: “I don’t really know how to deal with the tax authorities so I let my advisor take care of everything. Then, I just pay whatever is due”. Living with the constant threat of being seen, of being known, of being observed…you feel unquiet. 

And many times, your business decisions are led by tax drives, so it often happens that some good business venues abroad are discarded because they are not tax efficient. 

You’re Probably Wondering If There Are Alternatives 

It seems to be a secret to hide because no one will tell you the following, except what you’re going to hear. You can do as we say to do to avoid distractions – saving money is insignificant if you’re distracted. 

We’re sure you thought, “There must be more options for my tax strategy”. Or, ” I want to save more of what I’ve made, it belongs to me.” Or maybe you think, ” I pay so much in taxes…it’s time to act smarter and recover what I’ve lost over the years “. 

Once you understand the secrets behind what makes tax planning work, you’ll learn how to adapt it to your personal tax strategy. 

It’s now hunting season. Rip your tax bill. 

 

Do you feel welcomed to conduct business in your country? 

Warning sign: they say don’t leave, but it’s always been a toxic relationship

Are you mad at your government because incentives for growth are nonexistent and doing business is no longer as convenient as it used to be years ago ?  

Maybe you’re also on the radar of aggressive Income Tax Auditors as if you were doing something wrong. You feel like you have been put down by them, but still, in the end, they put their arms affectionately around your shoulder. How many of you have had that experience? 

Even if you are not, you’ll feel like a poor man in the corner by yourself…observed by some dressed up tax authorities who are ready to take everything you have as if it was a street robbery. Meanwhile, you can’t forget how tax evaders make more money than you do and you’ve always been scrupulous in not falling for that game. 

Due to the high-tax impact, you may feel ashamed of the business you lead which happens to have low growth. Even your neighbor, brother-in-law, wife’s friend… who are all younger entrepreneurs…even THEY can save more money on tax than you do.  

While you learn something new, you may want to teach your adult Children an important Tax lesson : Switch Your Tax Domicile

Swap it. Leave the regular government tax treatment for ordinary people and focus on something more ad-hoc…elsewhere, if necessary. 

Or, as an alternative, you may refuse to reverse this disadvantage to get out of trouble and look at shady shortcuts. Or, keep accepting the same conditions for a lifetime in  agony. 

If you’re like most people, you’ll be surprised to hear how it took many entrepreneurs to almost die before considering tax planning. 

What’s the best deal you had so far with your government? 50/50 ? 40/60?  

If these are the conditions, you don’t have a choice. A colonel would say “waaake up!”  

 

And, Wake Up In A Plane Seat Heading To Italy 

If you were looking forward to this… Well, we got good news for you. 

Welcome to Italy, and this time not as a tourist. 

It seems you’ve been walking around our perimeter looking for the entrance. 

All leaders have a tax strategy because saving on tax is smart. But only a few Tax advisors who are businessmen themselves (and not only handling other people’s money strategies…) have the right answer 

Are Both You And Your Partner High-Rate Taxpayers? 

Forget about a progressive percent, pay flat. Keep all your income items in order under an umbrella tax. This way, it guarantees a noiseless tax relationship, with no chaos, no dispute, no prejudice. 

If you work hard to elevate your position, the very least you deserve is a better tax treatment. 

Be aware that wealthy Italians pay more than what you’re offered! You can’t deny that. But the important part is that The Italian Tax Revenue Agency equally incentivizes all categories of new residents whether they are employees, employers or HNWIs. 

If you don’t know this topic, for now, you should just agree with us, as you’re about to discover more.

 

Show Me The € 100k Receipt And Enjoy

In practice, starting from Fiscal Year 2017, the Italian Law, with article 24-bis of the Italian Income Tax Code, states that…

If you are an HNWI you may want to transfer your tax residence to Italy and cover a flat rate of € 100,000 per year. This procedure substitutes any existing percentage calculated on EVERY income produced outside Italy. 

There is one condition, which doesn’t apply if you never lived in Italy.

It’s mandatory that your foreign tax residence status was kept for at least 9 out of the last 10 fiscal years. 

“It’s time to kick in because I need to invest more and almost even the plumber can afford put more into the pot than I can and I’m a damn businessman. How can this be?”

Why do you think everyone surpasses you ? 

 

It’s Time To Play Some Soft Music In The Background 

(We’re now sharing these details, unlike pretty much everyone else)

Under the € 100k rule, you may include ALL your non-Italian-sourced income. 

Some Examples:

  • Rental income from real estate owned outside Italy
  • Profits from non-Italian business activities
  • Financial assets
  • Capital income
  • Self-employment income
  • Corporate income
  • Employment income
  • Exemption of the 0.2% tax on the value of foreign financial assets 
  • Exemption of the 0.76% tax on the value of a foreign real estate 
  • Exemption from succession duties 
  • No Inheritance and donation taxes on all assets located abroad

 

So, you might think now you have to dig deep and lift the entire tree by yourself.

No, we make it easier for you. 

 

You should consider this option if you are, for example: 

– A manager of a multinational business

– A fund manager

– A professional sportsman

– An art collector

– An entrepreneur with multi-million dollar salary from activities carried out on a global scale

– (You name it…and we verify it)

 

 

But The More Streams Of Income You Receive,

The More You Want To “Throw-In”

Between March 2017 and March 2018 around 150 people applied and transferred their residencies to Italy under these conditions. Initially, the applicants were from the UK, Switzerland, Russia, USA, Norway, and the Netherlands. 

You may think that we’re based in Italy we are, of course, biased. Well, how come this option is recommended by tax advisors all over the world? Exactly! 

Keep reading.

One of the first applicants was Football player Cristiano Ronaldo. Since he’s been living in Turin, Italy…he is not complaining. He scored one of his loudest financial goals in his career. 

The inception of the law and his transfer to Italy in 2017 were four months apart (March to July) and certainly to be considered one the most generous incentive to move to Italy and a good investment year by year (after only three years). 

Well, it’s a great way to change your environment. 

And your tax position has a universal language: You don’t need to know Italian. Nothing gets missed in translation. 

 

A few days ago, the number of applicants became public

As a result, we see that the number of applicants is doubling every year with no rest:

2017 = 99

2018 = 264

2019 = 421

2020 = ? 

From March 2017 to December 2019 the number of new residents joining the € 100k program was 784.

Most of the applicants moved to Italy from the UK and France, followed by Switzerland, Brazil, USA, Russia. (Not necessarily citizens of these countries, but former tax residents!) 

Other applicants, before moving to Italy, were previously based in the UAE, Ukraine, Iran but also in countries with zero or low tax reception such as Mauritius, Monaco and the Cayman Islands. 

As of now, the Italian Tax Revenue Agency was rewarded by making a whopping income tax collection (which is not public, but you can get close to that figure) 

Let’s go back to the main topic:

Why Italy As Fiscal Residency For Wealthy Families?

As we said, one of the main advantages is that the € 100,000 flat fee applies to ALL your non-Italian-sourced income (with few exceptions)

But also… 

– It’s valid for 15 years (with the possibility to opt-out any time before). 

– Move to charming Italy 

– It fully replaces the (higher) ordinary tax regime 

Also, remember this…

From your group of income items, you can “cherry-pick” (exclude) the income generated in one or more foreign countries at your convenience. Why? Because this is the only way, you can benefit from foreign tax credits.

 

In Practice, What Can You Do Once You Are Onboard ? 

Here’s the point: 

– Stack up your partner’s high income and any other family member, for a flat € 100,000 with no additional tax, except € 25,000 for each family member. 

– Pay FLAT, not a percentage. This guarantees an accurate, fixed amount every year and no hidden taxes in case of exponential yearly growth in profits. 

– Apply tax planning in a non-blacklisted country such as Italy and eliminate all the concerns that those jurisdictions bring.

– Find similar businessmen who did the same 

– Apply a simple procedure that can, case-by-case, almost double your profits

– Open more international business venues and partnerships around the world and absorb ALL their future profits under the same “umbrella tax”.

Also, we’re sure you want to hear this…

– The fiscal residency status can be revoked at any time. 

– The income generated in Italy is taxed according to the ordinary rules, which can be planned and avoided

– Another category of profit excluded is any capital gain deriving from the sale of qualified investments carried out in the first five tax periods of validity of the option.

– Exempt from reporting your foreign financial investments on Form RW of your Italian income tax returns. 

– No disclosure of assets and income to the Italian tax authorities (very limited exception applies)

– No remittance taxation principle 

The substitute tax may be easily settled in one payment to the Italian Tax Authorities every year by 30 June

And…no conditions for the activities to be carried out in Italy. 

So, just subtract € 100,000 from what you’re paying now in your current country of residence and you’ll discover what you’ll earn! The reason why this quotation rings (approximately) true for so many people is because they happen to be alive and very well to share their success stories.

We’ve heard saying “I’m loyal to my country but I feel unwelcomed as a businessman and I have a bitter taste doing business in my country”. 

In fact, the more the governments are distant from businessmen’s needs, the more powerful the principle of switch tax home takes hold.

We guess you want to be respected, secure and protected by showing honesty and transparency to your tax authorities. 

 

In the background, you can hear a concert of non-sense 

– They suggest you close the company because the tax load is too heavy.  

– They tell you “You can’t do that, no one in our extended family ever did it…” 

– “I’m afraid to feel like an impostor, financial sinner, after joining this privileged position.” Or “I’m afraid to feel like evading and being located”.

– I’m afraid of losing even more money. 

If € 100,000 is too much, think about what you’re paying now! How much will you save, for example, over the next 5 years ? Will you be able to do it in accordance with the highest moral standards ? 

Even if it’s not your every-day subject it doesn’t matter… it’s just a matter of common sense. 

Even if you’re “self-declared” lazy about paperwork and you actually delegate a person to deal with these formalities…

And Yes, there are other countries, but do you really want to go that far from your homeland? Just make more comparisons while considering moving – lifestyle, your family and the most important are the numbers involved. Can we help you with this comparison? We’re pleased to do that. 

Even bigger entrepreneurs than you —the kind of “VIP” guys you’d never expect to struggle with anything—seem to get tax planning wrong. Just read the news about this topic.

This Is Your Chance To Move To Italy 

(best time ever, despite the Covid-era, promise) 

Meet friendly people, feel part of a community, enjoy sea, mountains, islands, a sophisticated lifestyle, and a healthy environment (physical and mental). As well as that you’re essentially connected with international flights easily or (especially during Covid times) you can enjoy driving in and out of the borders (Monaco, France, Germany, Switzerland, Austria, Croatia…)

Also, it’s worth noting that all family members can be added to the same application and all their personal income can be absorbed under the same terms. 

    • spouse or member of a civil partnership
    • children
    • parents 
    • sons-in-law and daughters-in-law
    • father-in-law and the mother-in-law
    • brothers and sisters

 

Because of the complexity of a whole family group, careful tax planning is required, mainly, to avoid any risk of assessments by the tax authorities of the Country of origin or former residency. 

But, if you and your family are paying way above € 100,000, without any complicated mental calculation, there is no doubt that this option is for you. At times, the gap between the profits and the € 100,000 fee is incredibly unfair, in favor of the taxpayer. It feels more a lavish family wedding dinner settled with a symbolic contribution.   

 

How Much Are You Losing By Keeping

The Same Tax “Dictator” Regime?

The truth is that there is a large use of censorship on this topic. 

If you haven’t stepped forward, the risk is that you’re already caught up in a whirling vortex where your government convinced you that you belong to them. Like a prisoner. 

Some are feeling guilty: not only you’re not a doctor-accountant-lawyer as your parents wanted, but you also join a favorable tax treatment to pay less taxes! Lots of brainwashing. It’s like swallowing junk food without even chewing. 

Your accountant is likely not to be a fiscal consultant, so this is not his area of expertise. In fact, you may even not know what your tax advisor is doing. The feeling is that every year you’re parachuting hoping not to land on cement. Have you noticed that his advice stretches farther than he himself had ever traveled? 

So, look around independently for the information you want to know.

But, you may need the nose of a truffle-hunting dog who spots for you the precious and delicious white truffle below ground. 

Deadlines To Participate

You can’t block the time and

you don’t want to harness your profits either.

So, if you miss doing it this year, you’ll have to wait another year. Perhaps you’ll lose time and energy just to understand too late that it may not even fit your situation…so check your compatibility now – this is the very first thing you need to do.

The year 2020 is almost over. Now let’s imagine that you move to Italy in 2021, you’ll need to wait for 2022 for your first tax return, right? If you don’t want to wait longer let us highlight in yellow that the sooner, the better…especially if your profits explode to record levels year by year.   

All you have to do to receive answers to your questions is to send a short email saying “I want to know if that fits me” 

Do it now, if you don’t want to be ” donating ” your earnings in excess to your tax authorities for much longer. There is quite a large gap between that and marching for the right philanthropic cause. You can’t say anything else, except that it’s true. Contact us now so you don’t badly regret it.

You need to learn more about Fiscal Residency in Italy for HNWIs 

As advisors, it’s our duty to find the most suitable tax treatment existing for you 

Let us walk you through all the relevant details  

 

In brief

This is why this tax option is so powerful and why many have found it to be so convenient 

    • Pay € 100,000 a year (limited to 15 years)
    • Include ALL foreign incomes 
    • Include ALL family members
    • Move to Italy

If this has brought you to the conclusion that it’s worth further investigating this option… you can likely see your tax bill lessen starting as soon as possible in the next fiscal year.

After all, if you want juicy information out of an orange you need to cut it in half and squeeze until some thick luscious drops leak out. The kind of details that are not otherwise available if a “traditional” lawyer or accountant happens to have a “traditional” approach. 

There is an assessment required with the Tax Authorities to confirm that your case matches all requirements. Since we can’t grab you all one-by-one, you should raise your hand in the crowd and reach out. Our advisors process many applications, so there is a very short margin of error. 

Guaranteed to be an easy procedure. There is not much you have to change. It’s like pressing a button. 

So far it worked for 784 individuals with your profile or higher. And, the number of applicants is doubling as confirmed by the statistics.

Governments have for many years seduced targeted groups of people and tax reductions for higher-rate taxpayers is love at first sight: from afar, you feel the heat of the body of that country.

After you break up with your previous country, the main dream is to be seen by their politicians – paying less and performing way better. Better if it’s a sea-view or a hills-view tax treatment. Most new tax residents in Italy recommend others to move to Italy too. Let’s do it 

Throw everything under one practical “umbrella”. If you do this, you’re going to transform tax dollars into cash dollars. Some will be reinvested. With a little part of them, we think you’d like to celebrate by buying something nice for your family and for yourself, too. Don’t you?



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