Bill Thompson said he had seen an increased number of people inquire about luxury properties in the country, including a couple living in Jersey.
The new tax regime, introduced in December 2017, allows the global super-rich to pay a flat rate of 100,000 euros, no matter how much money they earn.
Mr Thompson said that, initially, the tax did not get much attention and was not taken seriously due to the country’s political instability. However, the Italian government has now guaranteed the tax rate for the next 15 years and interest has dramatically increased.
‘We have dealt with around 1,000 inquiries since approximately 2018 from people all over the world, with quite a few coming from the UK, including a couple currently living in Jersey just a few weeks ago.’
When asked whether he expected an exodus from jurisdictions such as Jersey and the Cayman Islands to Italy, he said that it was dependent on the type of person. He said: ‘If someone has gone to the effort of moving to somewhere like Jersey purely for tax reasons, then the likelihood of them moving to Italy for negligibly different benefits is slim, as there isn’t any difference in the money they will save.
‘However, where we do predict a shift, is among the millionaires and billionaires living in places like America or Singapore, for example, who may now choose Italy over a smaller place such as Jersey or somewhere similar, now that they have the choice.
‘This tax [in Italy] will attract people who find that living on a small Island gives them cabin fever.’
Commenting on Italy’s new tax law, Economic Development Minister Lyndon Farnham said that he did not consider this a threat to Jersey’s high-value residents programme, due to the lack of a capital gains tax here.
In contrast, Italy’s current capital gains tax works on a sliding scale which decreases from 40% down to 0% after five years, according to Mr Thompson.
Senator Farnham said: ‘In cases like this it is important to consider the tax structure as a whole and not just the income tax on offer. And it is only right that individuals conduct their businesses and live in a place that they want and that they have a choice.
‘But Jersey will always be a popular destination for high-value residents due to its reputation of being a highly regulated jurisdiction with a stable political climate.’
