Italy to Raise Flat Tax for Wealthy Foreign Residents

Italy to Raise Flat Tax for Wealthy Foreign Residents

Italy is planning to increase its flat tax for high-net-worth individuals relocating to the country from €200,000 to €300,000 per year, starting with new residents after the 2026 budget takes effect. Family members would see their add-on rise from €25,000 to around €50,000 each.

The move is aimed at boosting revenues while keeping Italy competitive for wealthy retirees, investors, and entrepreneurs. Other incentives, such as the Regime Impatriati for inbound workers — which from 2024 generally grants a 50% exemption on employment or self-employment income in Italy (reduced to 40% if moving with a minor child), capped at €600,000 per year — remain unaffected.

Read the full story here: Italy aims to raise flat tax for rich foreigners by 50%.

Continue exploring Italy’s property market, lifestyle, and financial opportunities in our related Dolce Living articles below:

Buy Property in Italy: Step by Step

Do You Need a Geometra to Buy Property in Italy?

How to Migrate to Italy from the U.S.

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