Regarding Italy's elective visa for retired people, what are the tax implications for an individual? What are the pro and cons of the elective visa for a senior citizen?
A tax regime for new residents is dedicated to those who move to Italy, regardless of their specific work activity. High-net-worth individuals moving their tax residence to Italy can apply for a substitute tax to their foreign income, amounting to 100,000 euros, for each fiscal year, in lieu of the Italian income tax.
Getting an elective residence visa and becoming a tax resident in Italy results in the visa holder being subjected to the same taxation as an Italian citizen residing in Italy. For people who move their fiscal residence to Italy and have a consistent income coming from abroad, it is possible to access a special tax regime called "res non dom" tax regime, according to which a flat tax of 100,000 euros shall be paid notwithstanding the amount of income generated anywhere.
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