Flat tax for high-net-worth individuals in Italy
20.3.2017
Question for written answer E-001841-17
to the Commission
Rule 130
Sergio Gaetano Cofferati (S&D) , Elly Schlein (S&D) , Nessa Childers (S&D) , Hugues Bayet (S&D) , Ramón Jáuregui Atondo (S&D) , Olle Ludvigsson (S&D) , Evelyn Regner (S&D) , Ana Gomes (S&D) , Paul Tang (S&D) , Tibor Szanyi (S&D) , Juan Fernando López Aguilar (S&D) , Dietmar Köster (S&D)
The Italian Government recently introduced a flat tax for high-net-worth individuals transferring their tax residence to Italy. According to this new favourable regime, individuals who have been non-tax residents in Italy for at least nine out of the 10 years prior to moving to the country can benefit from a flat tax rate of EUR 100 000 on all income originating abroad, and the measure may be extended to include close family members (EUR 25 000 per family member). The objective of the measure is to ‘enhance investments in Italy by attracting high-net-worth individuals’.
Given that:
- —The measure is designed to attract wealthy individuals from abroad to boost Italy’s tax revenue and is to the detriment of the tax revenue of other countries, including Member States;
- —These high-net-worth individuals would be paying on the basis of their foreign incomes and would be reaping the benefits of a lump-sum tax, meaning they would receive priority treatment over normal workers and individuals already tax resident in Italy:
Does the Commission deem this measure to constitute harmful tax practice?
Can it be used by individuals for tax avoidance purposes?
Is it compliant with the principle of sincere cooperation between Member States on tax matters and in line with the efforts of the European institutions to curb loopholes and measures which can be exploited by individuals with high revenues to avoid paying their fair share of tax?