ROME: Millionaires from Russia to Norway and the US are seeking to take advantage of Italy’s low tax rates for the superrich.
In an effort to attract capital, Italy unveiled a measure last year allowing ultra-wealthy individuals taking up residency to pay a flat tax of €100,000 ($123,000) a year, regardless of their income, Bloomberg reported.
Around 150 people, including some with wealth of above the “hundreds of millions”, inquired about the measure, Fabrizio Pagani, head of the office of the minister of economy and finance said in an interview in London.
“We have people from UK, Switzerland, Russia, and from US, the usual suspects,” Pagani said. “But we have also Norwegians and some Dutch and not necessarily in finance. Some of those people are art collectors. We are talking about very, very rich people.”
Italy, which is struggling to accelerate the recovery after years of recession, is racing to attract wealthy foreigners to boost the economy with investments, consumption and fresh capital. Countries such as Portugal have already been successful in luring high-net-worth individuals, offering tax benefits in an effort to shore up public finances. Italy is facing political uncertainty at the election on March 4 where no clear winner is expected to emerge.
