Is Italy the new tax haven for the global rich?

T-A 2 days ago | parent | next [-]

Worth noting: at 137% [1], Italy is now over the debt/GDP ratio where Greece lost control of its public finances in 2009 (127%) [2] (and France is not all that far behind at 115%). Current tax rules are unlikely to remain in place if/when the next crisis hits.

[1] https://ec.europa.eu/eurostat/web/products-euro-indicators/w...

[2] https://en.wikipedia.org/wiki/Greek_government-debt_crisis#E...

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cromka 2 days ago | parent | prev | next [-]

AFAIK it's called Beckham Law and there are jurisdictions where tax is even lower, like in Poland: https://cgolegal.com/lump-sum-taxation-on-foreign-sourced-in...

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garyclarke27 2 days ago | parent | prev | next [-]

Portugal has NHR2 which is great for Tech Entrepreneurs, Zero Tax on foreign sourced Dividends and Zero Capital Gains for 10 years plus no inheritance tax if you leave to your children.

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ndisn 2 days ago | parent | prev | next [-]

> Italy has already been attacked by the French Government for using tax incentives to lure wealthy French and other international residents away

Has France tried to compete instead of criticise?

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A_Duck 2 days ago | parent | next [-]

If your competitor is dumping (selling for an unsustainably low price) then competing your way to bankruptcy is not the right option

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rdm_blackhole 2 days ago | parent | next [-]

> If your competitor is dumping (selling for an unsustainably low price) then competing your way to bankruptcy is not the right option

Italy is simply making a political choice to attract wealthy people instead of other people. Is it unsustainable as you put it, who knows? But what we know for sure is unsustainable is raising taxes like France every year on the middle class.

Also contrary to France who is running a 6% deficit annually, Italy is running a 3% deficit so it is managing its finances much better than France.

So much so in fact that France has become the de-facto "sick-man" of Europe because it is simply incapable of reforming itself.

Macron is on his way out and his government is paralyzed because they do not have a majority in parliament and he is pretty much hated by everyone. Meloni on the other hand is pretty well liked and has good chance of being reelected in 2027.

In France the situation is much more unstable with new candidates for the presidential election coming out of the woodwork every month including Francois Hollande, the most hated president of the entire 5th French republic who sees himself making a comeback somehow.

The outlook for France in 2027 and beyond is bleak. There are no parties interested in reforming France so the debt will keep on increasing, the public services will keep on deteriorating and none of the structural issues will be resolved either by the right or the left.

All of this to say that if I was wealthy French resident, I would consider moving to a country that is taxing me less and that is also much more politically and fiscally stable at the moment than France.

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traderj0e 2 days ago | parent | prev | next [-]

These people are still paying the country more than they cost. France is doing the unsustainable thing.

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lotsofpulp 2 days ago | parent | prev [-]

Seems like the US has figured it out:

>If you're paying a million euros of income tax a year in France, Italy is very tempting. As for US citizens, Americans are always taxable on worldwide income, so moving to Italy would not help their tax bill.

This characterization:

>selling for an unsustainably low price)

also applies to previous governments and voters that approved defined benefit pensions and retiree healthcare that needs ever growing populations to fund it.

I can see the situation just as easily be characterized as “avoid being liable for an unsustainable debt”.

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traderj0e a day ago | parent | next [-]

Income and assets are different though. They will tax what you earn, but they aren't trying to tax your net worth afterwards. Idk how France can go after the assets of people who move.