Italy’s flat tax for new residents lets people who move their tax residence to Italy pay a fixed annual amount on their foreign income instead of ordinary Italian income tax on it. For anyone who moves from January 1, 2026, the amount is €300,000 a year, plus €50,000 for each family member included in the option. The regime can last up to 15 years.
The price has tripled since the regime started. It began at €100,000 a year, rose to €200,000 for people who moved after August 10, 2024, and rose again to €300,000 under the 2026 budget law. People keep the amount that applied when they moved.
The rules sit in Article 24-bis of Italy’s income tax code. From January 1, 2027, they move to Article 246 of a new consolidated income tax code, with the same amounts and conditions. This guide explains how the regime works, who it fits, and what it does not cover.
Key takeaways
- The flat tax replaces Italian income tax on foreign-source income with a fixed amount, whatever that income is.
- For moves from January 1, 2026, the amount is €300,000 a year, plus €50,000 per included family member.
- Applicants must not have been Italian tax residents in at least nine of the previous ten tax years, and they need a favorable ruling from the Italian Revenue Agency first.
- Italian-source income is still taxed normally, and some capital gains in the first five years stay outside the regime.
- The option lasts up to 15 years and ends early if a payment is missed or late.
How Italy’s flat tax works
A person who becomes tax resident in Italy is normally taxed on worldwide income at Italian rates. The flat tax regime carves foreign-source income out of that system. In its place, the person pays a single substitute tax each year, set by law and unrelated to how much foreign income they actually receive.
The payment is made in one installment by the deadline for the income tax balance. It cannot be deducted from any other tax. Assessment, collection, penalties and disputes follow the normal income tax rules.
The taxpayer can also choose to leave specific countries out of the regime. Income from those countries is then taxed under the ordinary Italian rules, with a credit for foreign tax paid. People sometimes do this where a tax treaty or foreign tax credit makes ordinary treatment more practical for income from one country.
How much the flat tax costs
The amount depends on when the person moved their tax residence to Italy. Changes to the amount apply only to people who move after the change took effect.
| Transfer of residence to Italy | Main person, per year | Each family member, per year |
|---|---|---|
| Up to the August 10, 2024 change | €100,000 | €25,000 |
| After August 10, 2024, through December 31, 2025 | €200,000 | €25,000 |
| From January 1, 2026 | €300,000 | €50,000 |
The 2024 increase came through Decree-Law 113 of August 9, 2024, which took effect the next day. The 2026 increase came through the 2026 budget law (Law 199 of December 30, 2025), whose relevant paragraphs apply to people who move from January 1, 2026.
As an example, a person who moves in 2026 with a spouse and includes the spouse in the option pays €350,000 a year. Because the amount is fixed, the regime is generally only relevant to people with very large foreign income or assets. For most people moving to Italy, ordinary taxation or one of the other incentive regimes is a more realistic comparison.
Who qualifies
The core conditions in Article 24-bis are:
- A real move. The person must transfer tax residence to Italy under the general rules of Article 2 of the income tax code.
- Prior non-residence. They must not have been Italian tax residents for at least nine of the ten tax years before the option takes effect. This applies to Italian citizens returning home as well as to foreigners. The law sets no nationality condition.
- An advance ruling. The option can only be exercised after a favorable response to a ruling request (interpello) filed with the Agenzia delle Entrate. The request must be filed by the deadline for the tax return covering the year of the move.
- Disclosure of the last residence. The applicant names the country or countries where they were last tax resident. The Revenue Agency passes this information to those tax authorities through administrative cooperation.
The last point matters for people leaving another country. Italy shares the move with the former tax authority. Whether that country still treats the person as resident, or applies an exit charge, depends on its own rules. Our guides to exit taxes by country and tax treaty tie-breaker rules explain those questions.
What the flat tax covers and what it does not
The substitute tax covers foreign-source income, defined by reference to the foreign tax credit rules. That typically includes foreign dividends, interest, rents and other income produced abroad.
Several things stay outside it:
- Italian-source income. Salary for work done in Italy, Italian rents, Italian dividends and similar income are taxed under the ordinary rules.
- Some early capital gains. Gains on the sale of qualifying shareholdings realized in the first five tax years of the option are taxed under the ordinary rules, not covered by the flat amount.
- Excluded countries. Income from any country the taxpayer chose to leave out is taxed normally, with a foreign tax credit.
The regime also brings administrative relief. Under the 2017 budget law, people who opt in, and the family members they include, are exempt from Italy’s foreign asset reporting duty and from the wealth taxes on foreign real estate (IVIE) and foreign financial assets (IVAFE).
The flat tax cannot be combined with Italy’s incentive regimes for returning workers and researchers. A person must choose one route.
Family members
The option can be extended to family members listed in Article 433 of the Italian Civil Code, which covers relatives such as a spouse, children and parents. Each family member must also meet the prior non-residence condition. The applicant names each family member’s last country of tax residence.
Family members can be added during the life of the option and removed individually. If the main taxpayer revokes the option or loses it, family members lose it too. If a family member loses it, the main taxpayer keeps it.
How long it lasts and how it ends
The option runs for up to 15 years from the first tax year it applies. It ends automatically at that point. It ends earlier if the taxpayer revokes it, or if the substitute tax is not paid in full and on time. The effects already produced stay valid, but a person who revokes or loses the regime cannot opt in again.
The 2027 recodification
Italy is consolidating its tax laws into new codes. Legislative Decree 117 of June 19, 2026, published on July 3, 2026, contains a new consolidated income tax code. It restates the regime as Article 246, with the €300,000 amount, the €50,000 amount per family member, the nine-of-ten-years test and the 15-year limit. The Normattiva database shows the old Article 24-bis as repealed with effect from January 1, 2027.
In practice, this is a change of article number rather than of substance, based on the published text. Anyone who reads older guides will still see references to Article 24-bis.
Other Italian regimes for new residents
| Regime | Who it targets | Basic terms |
|---|---|---|
| Flat tax for new residents (Art. 24-bis, then Art. 246) | High-income individuals with mainly foreign income | €300,000 a year on foreign income, up to 15 years |
| 7% regime for foreign pensioners (Art. 24-ter) | People with foreign pensions who move to small towns in the south | 7% on all foreign income, for the first nine tax years |
| Incentives for workers moving to Italy | Employees and self-employed people who move to work in Italy | Partial exemption of Italian work income, under separate rules |
The 7% regime applies to towns of no more than 30,000 inhabitants in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, plus certain towns hit by earthquakes. Applicants must not have been Italian tax residents in the previous five tax years and must move from a country that has an administrative cooperation agreement with Italy.
For a wider view, see our overview of non-dom regimes in Europe, the comparison of lump-sum tax regimes by country, and our list of low-tax countries in Europe. Outside Europe, some people look at much smaller fixed regimes, such as the Próspera Lump Sum Tax Regime in Honduras, a flat $5,000 per year, described on our tax residency page. Like Italy’s regime, it does not by itself end tax duties in a previous country; that depends on the rules of that country.
Frequently asked questions
How much is Italy’s flat tax in 2026?
For people who move their tax residence to Italy from January 1, 2026, it is €300,000 a year, plus €50,000 for each family member included. People who moved earlier keep €100,000 or €200,000, depending on the date of their move.
Does Italy’s flat tax apply to Italian income?
No. It covers foreign-source income only. Income from Italian sources, such as Italian salary, rent or dividends, is taxed under the ordinary rules.
Is Italy abolishing the flat tax in 2027?
No. Article 24-bis is repealed from January 1, 2027, but the same regime continues as Article 246 of the new consolidated income tax code, based on the published text.
Can Italian citizens use the flat tax?
Yes. The law sets no nationality condition. An Italian citizen who has not been an Italian tax resident in at least nine of the previous ten tax years can apply on the same terms.
How long does the Italian flat tax last?
Up to 15 years from the first tax year it applies. It ends earlier if the taxpayer revokes it or does not pay the amount in full and on time.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.