Blow for wealthy expats in Italy: Meloni doubles tax on foreign wealth as pressure on government finances
Tax hike: Italian Prime Minister Giorgia Meloni hopes for more revenue as Italy’s public finances come under pressure
The government of Giorgia Meloni is going to double taxes for foreign residents.
The £86,000 annual allowance, which exempts people who move to the country from paying tax on income, gifts and inheritances from abroad for 15 years, will rise to £172,000.
Billionaires have flocked to the country to take advantage of the tax system since it was introduced in 2017, hoping it will boost the economy.
It allows around 4,000 people to save money on foreign income – but not on income earned in Italy – and has led to Milan becoming a hotspot for private equity managers fleeing London.
Milan has lured big investment firms including Capstone Investment Advisors, Eisler Capital and billionaire Steve Cohen’s Point72 Asset Management. But locals call it the “billionaires’ tax” or “the football plan.”
Italy is looking to raise money as government finances tighten.
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