Escaping from Italy for free will not work — you will have to pay for it

In Italy, those who are trying to change the jurisdiction of paying taxes may be forced to pay a large tax for this attempt. This is reported by local media with reference to the budget bill.

It is noted that we are talking about what is usually called the words capital gains tax. Now it will be applied immediately to all property that officials can reach.

In particular, according to the current draft, it is planned to impose a new levy on individuals whom the tax service considers residents for any six years out of the last ten. Thus, if it turns out that from January to December a person has been in the country for at least 183 days, then he will become a tax resident of Italy. Moreover, if desired, the tax service can announce that in a certain year a person in Italy had a center of vital interests like home or family, and decide that then, ten years ago, he was actually a tax resident.

Formally, some types of property such as bank deposits will not be taken into account. Nevertheless, the main types of investments — shares in companies, stocks, securities and cryptocurrencies — are planned to be included in the general table. Officials will consider how much the cost has increased from the moment of acquisition to the moment of change of tax residence. If it turns out that the total amount was from 800 thousand euros, this part will be taxed with a base rate of 26%. A preferential rate of 12.5% is provided for government securities. In some cases, the tax authorities may allow you to pay half in installments.

"The state estimates gross receipts with the full introduction of the mechanism at 6.74 million euros per year (with the first receipt in the amount of 3.37 million in 2027 due to the 180-day deadline). Based on the principle of caution, the technical report takes into account that starting from the fifth year (from 2032), payments in the amount of 3.37 million euros per year may begin in favor of those who ultimately did not sell assets, which will ensure a stable net benefit for the state budget," the media reported.

It is assumed that the new measure will come into force on January 1.

Recall that an attempt to introduce similar laws was made by France. However, earlier Paris lost a similar case against a businessman (C-9/02, Hughes de Lasteyrie du Saillant), from whom they tried to collect taxes under the law signed by Jacques Chirac. The EU Court of Justice decided that the law created a serious deterrent and financial barrier for EU citizens who are trying to exercise the basic right to free movement and doing business in another country of the Union.