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Flat tax regime for high-net-worth new residents. Can this work for you?

  •  By Property Organiser

For those looking to buy a property in Italy and relocate to Italy, relocation to Italy has never been so appealing.

In the last few year the Italian government decided to establish some strategies to improve foreign investments and has introduced tax incentives.

These are:

a) the special tax regime for new resident workers 

b) a flat tax regime for high-net-worth new residents 

c) tax break for new residents with foreign pensions.

Historically Italy was in the top ten countries with highest income taxation, ranging from 23% to 43% (with France at the top with over 45% tax revenue of gross domestic product.

Source: OECD Revenue Statistics, Comparative Tables 12.05.1919), but the  introduction of a flat tax is aimed to attract to the country high net incomes with a flat tax that

reduces hugely the the ordinary income taxes.

Flat Tax regime for high-net-worth new residents

High-net-worth individuals transferring their tax residence to Italy are enabled to apply a flat tax to their foreign income, amounting to €100,000 for each fiscal year, in lieu of the

ordinary Italian Income Tax.

The flat tax regime for new residents is dedicated to individuals transferring their residence to Italy and envisages a substitute tax on their foreign income.

This tax regime is available for "newly resident" individuals in Italy, who (regardless of their nationality or domicile) have been non-tax resident in Italy for at least 9 years out of

the 10 years preceding their transfer to Italy. This means citizens of any countries, even the ones with which Italy does not have any tax treaty in place. 

The incentive regime may be also extended to the family members of these individuals, and in this case a lower amount of EUR 25,000 is charged for each of their family

members, defined broadly as: spouses; descendants; brothers and sisters; parents and parents-in law; sons and daughters-in law.



This taxation represents an alternative to the application of the ordinary taxation and the option is valid for a period of 15 years.

Taxpayers may access to the regime submitting an advance tax ruling to the Italian Revenue Agency or exercising the option for substitute taxation in their tax return.

Any other Italian generated income, produced under the qualification of non-domiciled tax resident individual, is subject to the ordinary taxation applicable to the kind of income


Under the regime, no extra Italian taxes will be due on the value of real estate and financial investments located abroad.

So, in brief, what income does the tax flat cover?

* Employment income;

* Rental income;

* Financial income;

* Self-employment income;

* Dividend income;

* Other sources income.

Additionally, individuals can remit funds to Italy without any limitation because the lump sum tax already covers income made abroad.

Contact us now to learn more about your opportunities to buy in Italy, or check our Luxury Sicily section if you are interested in 365-day sunshine!



Hello, will this regime also apply to Italian citizens? I am a dual USA-Italy citizen, and have never lived in Italy. I have had residence in Belgium for 2 years, working as a contractor for NATO. If I spend most of my time working in Belgium (i.e. more than 183 days) can I still claim Italian domicile for tax purposes?
Thanks, Steve
A: Dear Steve, the tax regime is for all individuals, so your dual citizenship will be accetable as you would have not been resident in Italy in the last 10 years. 



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