Concept
Italy offers one of Europe's best-known regimes for wealthy relocators—the "new residents regime" (regime dei neo-residenti, Art. 24-bis of the Tax Code TUIR). Instead of the standard progressive tax, a new resident pays a fixed sum (flat tax) on all foreign income—regardless of its amount—for up to 15 years.
This is a substitute tax: it replaces Italian tax on foreign income but does not make the income invisible to other countries.
🍓 Status and amount as of June 1, 2026. The rate has increased three times: €100,000 (originally from 2017) → €200,000 (from August 10, 2024) → €300,000 for those whose Italian tax residency begins from January 1, 2026 (2026 budget law, published December 31, 2025). Previous rates are preserved for those who entered the regime earlier (grandfathering). The surcharge for each family member has increased from €25,000 to €50,000.
How the Flat Tax Works
- Amount: fixed tax on all foreign income (rate depends on the year of entry into the regime);
- Duration: up to 15 years, automatically renewed each year;
- Family: surcharge for each included family member (€25,000 for those who entered before 2026, €50,000 from 2026);
- Coverage: dividends, interest, capital gains, foreign real estate, etc.;
- Exemption from foreign asset monitoring (RW declaration) and from taxes on foreign assets (IVIE/IVAFE);
- Exemption from inheritance and gift tax on foreign assets during the regime period;
- Italian income is taxed under the standard progressive tax (IRPEF, up to 43% plus local surcharges).
Anti-abuse clause: capital gains from "qualified" participations (partecipazioni qualificate) in the first 5 years of the regime are not covered by the flat tax and are taxed under the standard rules.
Who Can Enter
Main condition: not being an Italian tax resident for at least 9 of the last 10 years before relocation. The regime is optional when transferring tax residency to Italy. Economically, it makes sense with substantial passive foreign income, when the fixed sum is more advantageous than the progressive rate.
Immigration Component: How to Obtain Residency
The flat tax is a tax regime, not a visa. To become a tax resident, you need to actually transfer residency (more than 183 days or center of life). Routes:
- EU/EEA citizens: no visa required, residency registration is sufficient.
- Investor Visa ("golden visa"): €250,000 in an innovative startup, €500,000 in an Italian company (S.r.l.), €1 million charitable donation, or €2 million in government bonds. The visa is independent of the flat tax: it grants residency, while tax treatment is determined separately.
- Elective residence visa (for financially independent individuals): passive income of ~€32,000/year (single) / €38,000 (couple) + ~€6,200 per child, housing and health insurance; no right to work in Italy.
Context: How It Compares to Other Regimes
The Italian regime is a fixed sum regardless of income amount, so it is advantageous specifically with very large foreign income. For comparison: Greece offers a similar flat tax of €100,000/year; Turkey offers 0% on foreign income for 20 years; the UK from 2025 abolished non-dom status and offers only a 4-year exemption (FIG regime). Italy wins on duration (15 years) and predictability but loses on the increased entry price.
Risks and Considerations
- The flat tax does not eliminate taxes in the country of exit: controlled foreign companies (CFC), exit tax, tie-breaker under tax treaty, citizenship-based taxation;
- You must actually become an Italian resident (center of life), otherwise the regime does not work;
- "Qualified" participations in the first 5 years are outside the regime;
- The rate increase to €300,000 shifts the profitability threshold upward;
- The fixed sum is paid annually regardless of whether there was any income.
Frequently Asked Questions
How much does the regime cost now?
€300,000/year for those entering from January 1, 2026; €200,000 for those who entered from August 10, 2024 to December 31, 2025; €100,000 for those who entered earlier. Plus a surcharge for family members (€50,000 or €25,000).
For how many years is the regime available?
Up to 15 years, with automatic annual renewal. Early exit is possible, re-entry is not.
Do I need to pay if there was no foreign income this year?
Yes. The amount is fixed and does not depend on actual income.
Is this a visa?
No. This is a tax regime; residency is arranged separately (EU citizens—without a visa; non-EU—investor or elective visa).
Does the regime cover inheritance?
For foreign assets—yes: during the regime period, there is an exemption from inheritance and gift tax on assets outside Italy.
FAQ
How much does the regime cost now?
€300,000/year for those entering from January 1, 2026; €200,000 for those who entered from August 10, 2024 to December 31, 2025; €100,000 for those who entered earlier. Plus a surcharge for family members (€50,000 or €25,000).
For how many years is the regime available?
Up to 15 years, with automatic annual renewal. Early exit is possible, re-entry is not.
Do I need to pay if there was no foreign income this year?
Yes. The amount is fixed and does not depend on actual income.
Is this a visa?
No. This is a tax regime; residency is arranged separately (EU citizens—without a visa; non-EU—investor or elective visa).
Does the regime cover inheritance?
For foreign assets—yes: during the regime period, there is an exemption from inheritance and gift tax on assets outside Italy.
Key Factual Claims
- Anti-abuse clause: capital gains from "qualified" participations (partecipazioni qualificate) in the first 5 years of the regime are not covered by the flat tax and are taxed under the standard rules.
- Main condition: not being an Italian tax resident for at least 9 of the last 10 years before relocation.