Italy Doubles Flat Tax for Rich Foreigners in Response to Public Backlash

Italy has doubled the flat tax that it applies to the foreign income of individuals who transfer their tax residence to the country, delivering a blow to wealthy expatriates looking to avoid potentially higher tax regimes in other European countries. Prime Minister Giorgia Meloni’s cabinet on Aug. 7 approved a rise in the annual flat tax on the overseas income for new tax residents in Italy from 100,000 euros to 200,000 euros, or the equivalent of $218,490. The move comes amid backlash in some circles in Italy to the “resident non-domiciled” tax regime, dubbed the “non-dom,” which the Italian government established in 2017 in a bid to attract wealthy individuals from abroad....