Trust Solutions for a Dynamic World: The Cone Marshall Group Advantage in Italy

We are thrilled to share that our article, written by CM Group CEO Katrina Robinson and Italian Managing Director Andrea Laurino, is featured in the second edition of WE Wealth: Family Office 2024.

Italy has become a top destination for HNWIs, retirees, and professionals seeking tax efficiency, an exceptional lifestyle, and strategic financial planning opportunities. From the flat tax regime to inheritance laws and the benefits of Italian citizenship jure sanguinis, our article explores why Italy is the ideal place to live and invest.

Italy as a Tax-Efficient Jurisdiction

Italy is a top destination for professionals, retirees, international executives, and high-net-worth individuals (HNWIs) seeking to relocate to a tax-efficient jurisdiction. Italy has several advantageous tax frameworks that are increasingly appealing to HNWIs and families —especially following recent changes in the UK’s Autumn Budget

The Flat Tax Regime: A Major Attraction

One of the most prominent tax incentives attracting HNWIs and families to Italy is the “flat tax” regime (art. 24 bis of the Italian Tax Code). This program allows new residents to pay a fixed annual tax of €200,000 on their foreign income, regardless of the total amount earned. This regime is appealing to those with significant international income streams. It simplifies tax obligations while enabling individuals to enjoy Italy’s rich lifestyle.

Italy’s Appeal to Latin American Immigrants

Furthermore, Italy has become a preferred destination for individuals from Latin America, specifically those with Italian ancestry. A significant number of people in countries such as Argentina, Brazil, and Uruguay have Italian ancestry, due to waves of Italian immigration to South America during the late 19th and early 20th centuries. Individuals who can trace their lineage to an Italian ancestor may be eligible for Italian citizenship through jure sanguinis (right of blood). This grants them the opportunity to live and work in Italy, as well as access to the broader European Union.

Succession Planning and Trusts: Key Considerations for HNWIs

When considering moving to Italy, HNWIs must evaluate their succession planning needs. Italy offers various frameworks for managing asset succession, but it is important to note that its legal system treats trusts differently compared to other jurisdictions. Many HNWIs, notably those from the UK or the US, have previously established trusts as part of their wealth management strategies. Italy acknowledges trusts under the Hague Trust Convention, which permits trusts created in other jurisdictions to be administered in Italy. This facilitates foreign residents in maintaining existing structures for generational wealth transfer upon moving to the country.

Navigating Italy’s Inheritance Laws and Forced Heirship Rules

Generational wealth planning is especially important for individuals considering long-term residency in Italy. The Italian legal system is characterized by strict inheritance laws, including forced heirship rules, that dictate how assets must be distributed among heirs. Therefore, for those accustomed to the flexibility of trust structures, it is important to review and adapt their existing frameworks to comply with Italian regulations. Effective wealth planning strategies within Italy’s tax and legal system are essential to ensure a smooth transition for future generations.

Conclusion: Why Italy Remains a Top Choice for HNWIs

Italy’s tax policies and lifestyle benefits establish the country as a leading destination for HNWIs. Beyond this, Italy’s lifestyle, climate, and rich history contribute to its status as a premier destination for expatriates. With its scenic landscapes and vibrant cities like Rome, Milan, and Florence, Italy offers an exceptional quality of life.

About The Cone Marshall Group

The Cone Marshall Group (“CMG”) is an international trustee and fiduciary service and wealth provider with 17 offices in over 14 countries. CMG assists individuals and families with estate planning and asset preservation. We specialize in complex cross-border trust work. Our expertise lies in navigating the rapidly evolving international landscape. With a team of highly qualified experts, CMG ensures attentive wealth planning that combines expertise, discretion, transparency, and regulatory compliance with the needs of an increasingly global market.