Italy offers four major tax regimes specifically designed to attract foreign residents — from a €300,000 flat tax for HNWIs to a 50% income exemption for workers. Here's everything you need to know.
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Each regime targets a different type of new resident. The right one depends on your income profile, assets, and lifestyle goals.
Pay a fixed €300,000 per year on all foreign-source income, regardless of how much you earn abroad. Introduced in 2017 at €100k and raised to €300k in 2023. One of Europe's most competitive regimes for ultra-high-net-worth individuals.
Move to Italy and pay tax on only 50% of your Italian-source income for 5 years. If you relocate to southern Italy (Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia), the exemption rises to 70%. Extended to 10 years if you buy a home or have children.
Retire to a southern Italian town with fewer than 20,000 inhabitants and pay a flat 7% tax on all foreign pension income — for 10 consecutive years. This is Italy's most targeted incentive for foreign retirees, introduced to revitalise depopulating southern villages.
Hundreds of Italian municipalities — mostly in Sicily, Calabria, Sardinia, and Abruzzo — sell abandoned properties for €1 to buyers who commit to renovating them within 3–5 years. Often combined with renovation grants and the 7% pension tax. A way to own Italian property and establish residency at minimal cost.
| Feature | €300k Flat Tax | Impatriate Regime | 7% Pension Tax | €1 Houses |
|---|---|---|---|---|
| Best for | HNWIs with large foreign income | Workers, freelancers, remote employees | Foreign retirees moving to south Italy | Property buyers on a budget |
| Tax saving | Potentially millions €/year | 50–70% less income tax | 7% instead of up to 43% IRPEF | Near-zero acquisition cost |
| Duration | 15 years | 5 years (extendable to 10) | 10 years | Permanent ownership |
| Annual cost | €300,000 flat tax | Normal IRPEF on 50% of income | 7% of foreign pension income | Renovation costs |
| Income covered | All foreign-source income | Italian-source income only | Foreign pension income | N/A (property scheme) |
| Location restriction | Anywhere in Italy | Anywhere (70% bonus for south) | South Italy only (<20k inhabitants) | Participating municipalities |
| Combinable with | Investor Visa, Citizenship, Digital Nomad | Digital Nomad Visa, Citizenship | €1 Houses, Citizenship application | 7% Pension Tax, Citizenship |
| Legal basis | Flat Tax Regime | Impatriate Regime | Pensioner Regime | Municipal schemes (varies) |
Use the Impatriate Regime (50%/70% exemption) combined with the Digital Nomad Visa. Pay tax on only half your Italian income for up to 10 years.
The €300k flat tax is designed for you. Pay one fixed amount regardless of worldwide income. Combine with the Investor Visa for a seamless, legally optimised Italian life.
The 7% pension tax is your best option. Retire to a beautiful southern Italian village, pay just 7% on your pension, and potentially buy a house for €1. The perfect triple combination.
Combine a €1 house acquisition with the impatriate regime or pension tax. Renovation grants are available, and Superbonus incentives may apply to energy upgrades.
The impatriate regime covers self-employment income. Pair it with a Digital Nomad Visa to live legally in Italy while running your international business.
Investor Visa (min. €250k) + €300k flat tax. Gain Italian residency through investment and pay one flat tax on all worldwide income. Add family members at €25k each.
We review your tax residency history, income profile, and goals to identify which regime(s) apply. Multiple regimes can sometimes be combined.
For the €300k flat tax, we prepare and file a ruling request with the Agenzia delle Entrate. Response typically within 120 days.
Register your residenza anagrafica at your Italian Comune and obtain your Codice Fiscale. We handle all paperwork.
We prepare and file your Italian tax return (Modello Redditi PF) each year, including the regime election.
We monitor legislative changes, ensure you remain eligible year-on-year, and advise on extension conditions.
Tax regimes work alongside your visa status. We ensure your entry route is properly aligned with your tax position from day one.
Tell us about your situation. We'll tell you exactly which path is right for you — no jargon, no pressure, no commitment.
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