In Italy, Giorgia Meloni doubled the income tax on the wealthy.

Rich people who move their tax residency to Italy will see the flat tax on income generated abroad double, from €100,000 to €200,000 per year, according to a decree adopted by the Meloni government in Giorgia on Wednesday, August 7.

The flat tax was introduced in 2017 to attract billionaires living abroad and thus encourage the movement of capital to Italy. This very generous tax system, which is valid for fifteen years, could also be extended to family members, with an annual tax of 25,000 euros. The increase in the flat tax only concerns newcomers settling in Italy, not those already resident there, the economy ministry told AFP.

So far, 1,186 ultra-rich have moved their tax residency to Italy since 2017 to take advantage of this scheme, but it is still ongoing. “It is very difficult to evaluate” The Minister of Economy and Finance, Giancarlo Giorgetti, explained to the press the amount of investments they have made in the peninsula.

debtor country

This modification of the diet that “Stays interesting” It is related to the fact that “We oppose the launch of the race.” between countries “Aims to create favorable tax conditions for individuals and companies.”“The minister said,” “If such a competition starts, countries like Italy, which has very limited fiscal room for manoeuvre, are bound to lose.”he added.

The increase in taxes on the income of the wealthy comes just in time for the preparation of the 2025 budget in Italy, which is burdened by debt and prey to a high deficit caused by green bonuses for the construction sector.

Controversy over taxing the rich

The G20 countries committed at the end of July in Rio de Janeiro “cooperation” So that more taxes are imposed on the rich, in the name of combating inequality between people, but without going so far as to agree on a global tax.

Pushed by Brazil’s leftist President Lula, who chairs the G20 this year, the idea of ​​a minimum tax on the rich has not gained consensus, but a compromise has emerged to encourage everyone to tax themselves more. In addition to Brazil, France, South Africa, Spain and the African Union have supported international taxation of the wealthy, but the United States has refused to negotiate on the issue.