Italy will double a flat levy on foreign income for wealthy new residents who’ve been flocking to the country to take advantage of it.
The €100,000 ($109,000) a year payment—which exempts people moving to the country from taxes on overseas earnings, gifts and inheritance for 15 years—will rise to €200,000, Finance Minister Giancarlo Giorgetti said Wednesday.
“The measure that has caused a lot of noise is the doubling of the flat tax for billionaires who decide to transfer their tax domicile to Italy,” Giorgetti told a press conference in Rome following an earlier meeting of the cabinet.
Faced with a squeeze on Italy’s public finances before autumn’s budget, Prime Minister Giorgia Meloni is looking for ways to raise more revenue. The flat levy that was introduced in 2017 and is now used by about 4,000 people has been seen as one option.
The Il Messaggero newspaper reported the possible increase earlier Wednesday. The charge saves money for those with large amounts of foreign income, though anything they earn in Italy is subject to the same tax regulations as everyone else.
Giorgetti’s remarks follow speculation this month that the government plans to boost revenue from financial and energy companies.
There are no plans to tax the “extra profits” of lenders and other firms, Giorgetti said—dismissing a move reminiscent of an initiative last summer that was dramatically watered down after a selloff in Italy’s financial sector.
This article was provided by Bloomberg News.