Connect with us

News

Italy retains allure for rich Europeans fleeing higher taxes

Published

on

Italy retains allure for rich Europeans fleeing higher taxes

Wealthy UK and French taxpayers still want to relocate to Italy despite Rome’s recent decision to double its flat tax on the foreign income of rich expats to €200,000 a year.

With the looming abolition of Britain’s historic “non-dom” tax regime, advisers claim Italy remains a highly attractive alternative.

“People move not just because of tax, but because they might like the Italian Riviera, the Italian Alps, the architecture, culture, people,” said Miles Dean, head of international tax at accountancy firm Andersen, who claimed non-doms were looking to leave the UK “in huge numbers”.

Several consultants in the Eurozone’s third-largest economy say they are receiving a steady stream of inquiries from France, where an unstable political climate has fuelled concerns over higher taxes on the wealthy.

In August, Prime Minister Giorgia Meloni’s rightwing government unexpectedly doubled Italy’s annual levy on overseas income for new tax residents to €200,000 a year.

Advertisement

The move followed grumbles among Italians about the fairness of a flat tax rate set in 2016 as part of a post-Brexit push to lure wealthy people away from the UK. The scheme is estimated to have attracted 2,730 multimillionaires, including oligarchs, private equity investors and even sportspeople, most of whom have set up residence in Milan.

However, Meloni said her government had “considered it right” to update a tax incentive that had seemed “extremely generous”, as the original €100,000 flat tax had not increased since the scheme’s inception.

“The increase from €100,000 to €200,000 does not make a huge difference for multimillionaires that have large foreign incomes,” said Marco Cerrato, partner at tax firm Maisto e Associati in Milan. “Individuals that we have been advising and that have planned to transfer to Italy after 2025 have not changed their plans.”

Maurizio Fresca, an international tax consultant at Italian law firm Chiomenti, said his clients were not so much concerned about the higher tax but about “the politics” behind Rome’s decision, and what that might suggest about the scheme’s long-term durability.

“When high net worth individuals want to relocate to another country, €100,000 a year is not something that holds them back,” Fresca said. “They want to be reassured that this regime will be in force in the future.”

Advertisement

Fresca said Meloni’s government had increased the tax amount to defuse growing public discontent about generous incentives for wealthy foreigners.

“The Italian government wants to avoid a political discussion about the fairness of the lump sum,” Fresca said, adding that €100,000 was seen as “cheap” after several years of high inflation.

Consultants also said Rome had handled the change deftly.

The new rate will only apply to newcomers establishing tax residency in Italy after the change was approved, while existing participants are grandfathered in at the old rate. No other detail has been altered, which had served to reinforce a sense of the scheme’s stability.

Jacopo Zamboni, executive director for private clients at Henley & Partners, which helps wealthy people obtain investment visas and foreign citizenships, said the tax rise was “not perceived as legal uncertainty”.

Advertisement

“Clients see it as an adaptation of the price to the current circumstances,” he said.

Zamboni said inquiries about Italy from British and French residents were up 10 per cent in August this year compared with August 2023.

The increase in the flat tax is expected to discourage some people without sufficient foreign assets or income from making an Italian move. But Cerrato said that could help to avoid a situation in which the incentive scheme is abolished due to “an excessive influx of wealthy foreigners that impact the housing market”.

The participants pay the flat tax on all overseas income and assets for up to 15 years, while shielding them from tax claims elsewhere through double tax treaties.

Many potential beneficiaries were initially wary, given Italy’s reputation for quick changes of government and rapid shifts in policy. But the incentives have proved surprisingly durable. So far they have survived five governments. 

Advertisement

The abolition of the non-dom regime in the UK, alongside plans by the new Labour government to raise taxes, has led some current UK residents to consider moving elsewhere.

In France, an inconclusive parliamentary election in July had prompted a flood of calls from wealthy French residents to their advisers seeking options to shift their assets, were a leftwing alliance to take power and reintroduce wealth taxes.

A conservative, Michel Barnier, has instead been appointed prime minister since, although uncertainty over whether the government will hold has added to incentives for people to look for alternatives.

Italy is one of several popular destinations, which also include traditional tax havens Monaco and Switzerland, as well as Dubai, Greece, Cyprus and Malta.

Tax is not the only factor that drives people’s decision making, advisers say. “A lot of these things come down to lifestyle, connectivity,” Dean said. “There is no one size fits all.”

Advertisement

Additional reporting by Sarah White in Paris

News

Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

Published

on

Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

For decades, immigrants who have followed the rules and have not broken the law have had hopes of earning a green card, a document that allows them to live legally in the United States and gain a path to citizenship.

But under new guidance issued by the Trump administration, immigrants can now be denied a green card for expressing political opinions, such as participating in pro-Palestinian campus protests, posting criticism of Israel on social media and desecrating the American flag, according to internal Department of Homeland Security training materials reviewed by The New York Times.

The documents, which have not been previously reported, show how expansively the Trump administration is carrying out a directive from last August to vet green card applicants for “anti-American” and “antisemitic” views.

The administration includes criticism of Israel as a potentially disqualifying factor, with the training materials citing as an example of questionable speech a social media post that declares, “Stop Israeli Terror in Palestine” and shows the Israeli flag crossed out.

The materials were distributed last month to immigration officers at U.S. Citizenship and Immigration Services, which is part of the Department of Homeland Security and handles applications for green cards and other forms of legal status.

Advertisement

They reflect how U.S.C.I.S. — long considered the gateway agency for legal migration — has rapidly transformed under President Trump into another cog in his administration’s deportation machine. The agency has worked to strip naturalized Americans of their citizenship and has hired armed federal agents to investigate immigration crimes.

The administration is also granting permanent legal residency to far fewer applicants. Green card approvals have fallen by more than half in recent months, according to a Times analysis of agency data.

“There is no room in America for aliens who espouse anti-American ideologies or support terrorist organizations,” Joseph Edlow, the agency’s director, told Congress in February.

Critics of Mr. Trump’s approach say the administration is seeking to restrict legitimate political speech, and has conflated opposition to Israeli government policies with antisemitism.

Basing green card decisions on “ideological screenings is fundamentally un-American and should have no place in a country built on the promise of free expression,” said Amanda Baran, a senior agency official under President Joseph R. Biden Jr.

Advertisement

Administration officials said they were defending American values.

“If you hate America, you have no business demanding to live in America,” said Zach Kahler, a spokesman for U.S.C.I.S.

Abigail Jackson, a White House spokeswoman, said the administration’s policies had “nothing to do with free speech” and were meant to protect “American institutions, the safety of citizens, national security and the freedoms of the United States.”

The administration has moved aggressively against immigrants for expressing political views that officials have deemed anti-American, making ideology a central part of its immigration vetting process. Secretary of State Marco Rubio has revoked the visas of pro-Palestinian student activists, including one who wrote a column criticizing her university’s response to pro-Palestinian demands.

The Department of Homeland Security has proposed reviewing the social media histories of tourists seeking to visit the United States.

Advertisement

Immigration officers have significant discretion in deciding whether to grant foreigners long-term permanent residence. They have long considered a variety of factors, including criminal records, national security threats, family ties to the United States and employment histories.

Ideology has also traditionally been one of those factors. In some cases, U.S. law forbids officers from granting green cards to people who have belonged to a Communist or other “totalitarian” political party, have promoted anarchy or have called for the overthrow of the U.S. government by “force or violence or other unconstitutional means.”

But in the past, immigration officers have focused on statements that could incite or encourage violence, given concerns about infringing on constitutionally protected speech, former U.S.C.I.S. officials said.

The new training materials reviewed by The Times guide immigration officers through the factors they should consider when ruling on green card applications. They discourage officers from granting green cards to people with a history of “endorsing, promoting or supporting anti-American views” or “antisemitic terrorism, ideologies or groups.”

Immigration officers have been told to weigh those factors as “overwhelmingly negative.”

Advertisement

The documents list support for “subversive” ideologies as among other factors that could lead to an application being rejected. As an example, the materials point to someone “holding a sign advocating overthrow of the U.S. government.”

In addition, the guidance describes the desecration of the American flag as a negative factor, citing Mr. Trump’s executive order last year directing the Justice Department to prosecute protesters who burn the flag. The Supreme Court has ruled that flag burning is a form of political expression protected by the First Amendment.

Immigration officers have also been told to scrutinize applicants who encourage antisemitism “through rhetorical or physical actions.” They were instructed to “focus particularly on aliens who engaged in on-campus anti-American and antisemitic activities” after the Hamas attacks against Israel in 2023, the documents show.

Further examples in the documents of conduct characterized as antisemitic include a social media post showing a map of Israel with the nation’s name crossed out and replaced with the word “Palestine.” Another illustrative post suggests that Israelis should “taste what people in Gaza are tasting.”

Immigration officers must elevate all cases involving “potential anti-American and/or antisemitic conduct or ideology” to their managers and to the agency’s general counsel’s office for review, according to the documents.

Advertisement

In recent months, the agency has also changed the way it refers to the employees who adjudicate green card applications, long known as “immigration services officers.” In job postings, it now calls them “homeland defenders.”

“Protect your homeland and defend your culture,” one posting says.

Steven Rich contributed reporting.

Continue Reading

News

America’s bid for energy supremacy is being forged in war

Published

on

America’s bid for energy supremacy is being forged in war

Additional work by Jana Tauschinski

Oil and gas tanker location and destination data are from Kpler. The map shows the latest position for vessels with an active AIS signal on April 19–20, filtered by minimum capacity thresholds: crude tankers of at least 50,000 deadweight tonnage (DWT); oil product tankers of at least 55,000 DWT; oil/chemical tankers of at least 40,000 DWT; LNG carriers of at least 150,000 cubic metres; and LPG carriers of at least 50,000 cubic metres. Net fossil fuel import data by country are based on Ember analysis of the IEA World Energy Balances 2023.

Continue Reading

News

Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

Published

on

Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

A 26-year-old man is facing two counts of first-degree murder in the deaths of two University of South Florida doctoral students who went missing last week, local authorities said Saturday. 

The Hillsborough County Sheriff’s Office in Florida said that evidence presented to the state attorney’s office resulted in the charges against Hisham Abugharbieh, the roommate of Zamil Limon, one of the doctoral students. 

Abugharbieh is accused of premediated murder with a weapon. He was arrested on Friday, the same day Limon was found dead. 

The family of Nahida Bristy, the other doctoral student, told CBS News that police said she is also likely dead. That is based on the volume of blood discovered at Abugharbieh’s residence, which he shared with Limon.

“Police told us she is no longer with us,” Bristy’s brother, Zahid Prato, said early Saturday.

Advertisement

The family was told her body may never be found and police believe she may have been dismembered, according to Prato. 

CBS News has reached out to police for more information.

Authorities said in a statement Saturday they were still searching for Bristy.

Limon’s remains were found on the Howard Franklin Bridge in Tampa Friday morning, Chief Deputy Joseph Maurer with the Hillsborough County Sheriff’s Office said. His cause of death was pending autopsy results.

Deputies with the sheriff’s office took Abugharbieh into custody on Friday after responding to a domestic violence call at a home in the Lake Forest Community, a neighborhood near USF’s Tampa campus, officials said. He also faces charges of domestic violence and evidence tampering, as well as a charge of failing to report a death to law enforcement.

Advertisement

Limon and Bristy, both 27, had last been seen in the Tampa area on April 16. 

Limon was studying the use of AI in environmental science and was set to present his doctoral thesis this week, his family said. Bristy is studying chemical engineering. 

Advertisement
Continue Reading
Advertisement

Trending