Italy Flat Tax for HNWI

€300,000/year.
On all your foreign income.
For 15 years.

Italy's €300,000 flat tax regime allows new Italian residents to pay a single annual lump sum of €300,000 on all foreign-source income — no matter how much they earn abroad. One of Europe's most powerful wealth attraction tools.

📅 Free Assessment How It Works

€300k

Annual flat tax on all foreign income

15 years

Maximum duration

€25k

Per additional family member

2017

Year Introduced

The Regime

What is the
€300k Flat Tax?

Introduced in 2017, the regime allows new Italian residents to elect to pay a single annual lump-sum tax of €300,000 on all income produced outside Italy — regardless of the actual amount earned abroad.

This means a person earning €5,000,000 abroad pays the same €300,000 as someone earning €300,000 abroad. Italian-source income continues to be taxed under ordinary Italian progressive rates.

The regime can be elected for a maximum of 15 consecutive tax years, and can be revoked at any time.

👨‍👩‍👧 Adding Family Members

Qualifying family members (spouse, children, etc.) who also transfer residency to Italy can be included in the regime at an additional €25,000 per person per year. Each family member's foreign income is then also fully covered by this lump sum.

Break-even point: The flat tax becomes advantageous for individuals with foreign income above approximately €200,000–€250,000 per year (depending on income type). Above €500,000 the savings become very substantial. We calculate the exact break-even for your profile for free.

✅ Who Qualifies?

Non-Italian tax resident for at least 9 of the 10 years prior to moving to Italy
Any nationality (not restricted to non-EU)
Any income type: investments, dividends, capital gains, rental income abroad, business income, pensions
No minimum investment required (unlike the Investor Visa)
No minimum stay requirement in Italy (though you must be tax resident)

❌ What It Does NOT Cover

Italian-source income (taxed normally at progressive rates)
Income from countries that Italy has specifically excluded (can elect country-by-country exclusion)
Inheritance and gift tax (separate regime)

🌍 Country-by-Country Election

You can choose to exclude specific countries from the flat tax regime and instead apply double taxation treaties for income from those jurisdictions. This can be advantageous if a treaty offers a lower effective rate than the flat tax allocation for that country's income.

The Process

How to elect the regime.

Establish Italian Tax ResidencyTransfer your tax residency to Italy by registering as a resident (iscrizione all'anagrafe) in any Italian municipality for the relevant tax year.

File Italian Tax Return (Modello Redditi)In your first Italian tax return, elect the substitute tax regime by checking the appropriate box and attaching the required disclosure of foreign assets (RW form).

Pay the €300,000 Lump SumPay the flat tax by June 30 of each year (or in two installments). Payment replaces all ordinary Italian income tax on foreign-source income.

File Annual ReturnFile a simplified tax return each year declaring the election. Italian-source income, if any, is reported and taxed separately under standard progressive rates.

Renew Annually (up to 15 years)The election is renewed automatically each year unless revoked. You can exit the regime at any time — for example, if your foreign income decreases significantly.

Real Numbers

What the savings look like.

Annual Foreign Income	Standard Italian Tax (est.)	Flat Tax Cost	Annual Saving	10-Year Saving
€200,000	~€84,000 (43%)	€300,000	–€16,000 (not beneficial)	—
€400,000	~€172,000 (43%)	€300,000	+€72,000/year	+€720,000
€1,000,000	~€430,000 (43%)	€300,000	+€330,000/year	+€3,300,000
€5,000,000	~€2,150,000 (43%)	€300,000	+€2,050,000/year	+€20,500,000

Estimates based on Italian progressive rates. Actual figures depend on income type, deductions, and treaty positions. Consult us for your personalized calculation.

FAQ

Common questions.

Can I combine the flat tax with the Investor Visa?

Yes. The Investor Visa grants residency, and once you are a tax resident you can elect the flat tax regime. The two schemes are complementary and frequently used together by HNWIs who want both residency security and tax optimization.

Do I need to be physically present in Italy?

You must be a tax resident, which requires registering at an Italian municipality. However, there is no minimum number of days you must spend in Italy — as long as Italy is your tax residence of record.

What happens to my foreign wealth tax obligations?

Under the regime, you are exempt from IVAFE (the Italian tax on foreign financial assets) and IVIE (the Italian tax on foreign real estate) for assets held abroad. This is an additional significant benefit for asset-heavy individuals.

Can I revoke the regime?

Yes. You can revoke the flat tax election at any time. However, once revoked you cannot re-elect the same regime. Careful planning is advisable before deciding to exit.

Does it cover crypto gains?

Crypto assets are a complex area of Italian tax law that has evolved significantly. In general, foreign-source crypto gains can fall under the flat tax, but the classification of the asset and the jurisdiction of the exchange matters. We advise on crypto-specific structuring as part of our consultation.

€300,000/year.On all your foreign income.For 15 years.

What is the€300k Flat Tax?