High net worth rich people from all over the world are leaving countries like France and Britain and settling in Italy. The reason is flat tax and easy rules. A fixed annual tax is levied on foreign income, regardless of the amount earned. Its maximum limit is 3 lakh Euro (about Rs 3 crore), which was earlier 1 lakh and then 2 lakh Euro. In Italy, one also gets relief in property and inheritance tax along with other deductions. Tension in the Middle East has accelerated the trend. Uncertainty has increased over tax-free options like Dubai. Mass migration has not happened yet. People are looking for alternatives. According to experts, tax stability and location in Europe are giving Italy an advantage. Italy is geographically located in the center of Europe. It is very easy for the billionaires living here to reach major business centers like Paris, London, Berlin or Zurich. It is more convenient in terms of travel time and connectivity compared to Dubai or other tax haven countries. There is no stamp duty or inheritance tax on purchasing a first property in Italy. On the contrary, while buying a house in France, one has to deposit huge fees in the government treasury. There, President Emmanuel Macron has increased the problems of the rich by changing the wealth tax into real estate tax. For the first time in Italy, complete relief from property tax has been given on the first house. However, heavy fees have to be paid for waste management. The biggest attraction from an investment perspective is the inheritance tax differential. In Italy, there is zero duty on transfer of ancestral property up to 10 lakh euros. Beyond this limit only a marginal rate of 4% applies. At the same time, under French rules, the scope of tax-free exemption is limited to only 1 lakh euros. After this the tax rates increase to 45%. According to Paris tax lawyer Jerome Barre, every week businessmen are seeking advice to leave France. People are unhappy with the current financial environment. They fear that the rules will become stricter in the future. The situation may become more difficult after the 2027 presidential elections. Impact of Middle East tension, attention is shifting from UAE to Italy. According to Peter Ferrigno of Henley & Partners, last year Dubai was the first choice of millionaires because there is no tax there. This number may decrease in 2026 due to Middle East tensions. It is not easy to move from a tax-free country to a tax-paying country. People accustomed to the zero-tax lifestyle may find administrative formalities burdensome.
Source link
[ad_3]
Italy is becoming the new favorite destination of the world’s rich: Uncertainty has increased regarding tax-free destinations like Dubai, people are looking for alternatives.
