eprivateclient quotes Nicola Saccardo and Daniele Mologni on why Italy is an increasingly popular destination for high-net-worth individuals looking to relocate
Italy is emerging as a preferred destination for high-net-worth individuals (HNWIs) considering relocation, particularly in light of upcoming changes to the UK's non-dom regime in April 2025. eprivateclient spoke with Nicola Saccardo, Partner and Head of our Italian practice and Daniele Mologni, Tax Adviser, to discuss this trend.
As the current Italian tax regime stands, those wishing to relocate are required to pay a lump sum of €200,000 with the only requirement being that in the last ten years, individuals have not been a resident for nine of those.
Assets held outside of the jurisdiction are not subject to wealth taxes or inheritance tax (IHT) and gift tax. Italy also offers the benefit of relatives being able to relocate for a lump sum of €25,000 each providing they meet the country’s requirements.
Moreover, the Italian lump sum regime offers the possibility of obtaining a specific ruling on the interpretation and application of the relocation rules. The ruling can be obtained prior to clients moving and does not mean they are obliged to claim residency.
Nicola and Daniele claim this is a “unique feature” of the regime.
All clients make use of it because obviously it enhances certainty.
Other benefits include that it is simple to qualify, the regime is flexible and there are no reporting requirements.
When the only change to the lump sum took place in 2024 (up for the main applicant from €100k to €200k), the government granted everyone who was already a resident grandfathering. This meant the old rules continued to apply to those who were already residents in the country.
Nicola adds:
The Lump Sum Regime is still obviously very appealing, but to certain people with a certain profile...You need to have a quite substantial amount of wealth to effectively enjoy this regime. So, it's not like a mass regime that triggers a huge amount of relocations. This contributes to its sustainability in the long term.
Read the full piece in eprivateclient here.
