Wealthy individuals are leaving the UK and relocating to Italy since the Labour Party announced plans to abolish the non-dom regime, says Nicola Saccardo, partner and Italian tax expert at international law firm Charles Russell Speechlys.
He said: “We’ve seen an uptick in relocations to Italy among wealthy individuals. There has been significant interest in the Italian lump sum tax regime among private equity partners, particularly due to Italy’s favourable treatment of carry interest in contrast to the UK.
“It’s this favourable and simple tax regime coupled with an excellent lifestyle that makes Italy an attractive destination, and individuals relocating primarily target areas like Milan, Rome, Florence, Tuscany and the Como Lake. Milan is especially preferable among private equity professionals.”
He added: “We’re also observing a significant migration to Italy from other EU countries and Latin America. The upcoming French elections could trigger similar migration patterns.
“The government needs to strike the right balance to attract the wealthy to Britain but ensure that these proposals don’t accelerate peoples plans for relocation.”
