Last year, the Italian government changed its personal tax regime in an attempt to lure high-earning Italians to come back to the homeland. Mr. Pagani, the chief of staff of Italy’s Finance Ministry, said this was designed with the interests of portfolio managers and fund company executives in mind. Some of the new incentives include a 50% reduction of income tax for five years for middle managers and a flat €100,000 annual tax on foreign earnings for wealthy individuals, lasting around 15 years.
According to recent figures from the European Fund and Asset Management Association, Italy’s fund industry is the sixth largest in Europe. This accounts for approximately 5% of the European Financial market share and €1.2tn in assets.
“There is a consensus that London will remain an important player in the European financial sector in the future” said Keith Knutsson of Integrale Advisors.