The Italian government issued a Decree doubling the flat tax on foreign income and gains from €100,000 to €200,000, with gains from the sale of qualified shareholdings in the first five years still exempt. The Decree takes effect on August 10, 2024, and applies only to individuals transferring tax residency to Italy after this date. Residency is defined as a person’s habitual abode, based on both factual presence and intent. Existing beneficiaries of the €100,000 flat tax are not affected by the increase. The Decree must be converted into law by Parliament within 60 days and may be amended during this process.

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The flat tax might be doubling for the rich who transfer their tax residence to Italy.

On 29 July 2024 the Chancellor of the Exchequer, Rachel Reeves has confirmed the removal of preferential tax treatment based on domicile status for all new foreign income and gains (FIG) that arise from 6 April 2025 and the implementation of a new residence-based regime.