Italy's government has doubled the annual flat tax for high-net-worth individuals (HNWIs) relocating to the country from €100,000 to €200,000, a move approved on August 7. This tax regime, introduced in 2017, remains attractive as it excludes personal income taxes on non-Italian source income for new arrivals. The measure aims to retain competitiveness amid a shift away from the UK's non-dom tax regime, with 1,186 ultra-rich individuals having moved their tax residency to Italy under the previous rate. Economy Minister Giancarlo Giorgetti emphasized that the increase targets newcomers only and is intended to mitigate Italy’s fiscal challenges while avoiding a race to create tax havens. The adjustment comes as Italy prepares its 2025 budget, which is burdened by debt and deficits exacerbated by green construction bonuses. This initiative may also help address EU concerns regarding Italy's fiscal deficit.