There has been an important change to the flat tax regime for high-net-worth individuals going into the 2026 year. In this article, we cover what this regime is, what the changes are, and the steps you can take to calling Italy home.
What is the flat tax regime?
A flat tax is a fixed tax rate applied to a taxable amount, independent of the income. Italy has offered a few different flat tax regimes to attract both foreigners who are looking to move to the country, along with Italians who had left and would like to return. We will mention a couple other flat tax regimes later in the article, but the primary focus is the change that has been made in 2026 for the flat tax regime for high-net-worth individuals.
High-net-worth individuals are generally classified as persons with liquid assets over $1 million. By offering a flat tax, Italy becomes an attractive location for such people to relocate to. In general, the regime Italy offers is for foreign income tax, for individuals who have not resided in Italy for 9 out of the past 10 years, and can be applied for up to 15 years. Immediate family members are included, for an extra amount per member. Both the amount of the flat tax, along with the amount per family member has increased for 2026.
Changes made for 2026
This is not the first time Italy has raised the amount for this particular flat tax regime. In 2024, it increased from €100,000 to €200,000. And now following the 2026 Annual Budget, it has increased to €300,000, and from €25,000 to €50,000 for qualifying family members. Despite the increase, the flat tax regime remains an attractive option when considering that it is common in Italy and wider Europe to tax 50% of income, if not more. There is also an exemption from Italian gift and inheritance tax. Finally, this new raise is not retroactive, so those who have benefited from the regime in the past do not need to worry about seeing an increase.
The Investor Visa
It is important to note that being eligible for the flat tax regime and/or owning property in Italy does not automatically guarantee one the permission to reside in Italy. Non-EU citizens are limited to 90 days in Italy within a 180-day period without a visa.
The good news is, there are multiple visa options Italy offers, many of which we have covered on our blog. High-net-worth individuals might particularly enjoy the Investor Visa. This visa permits the applicant to reside in Italy for an initial two years, with the opportunity of renewing so long as conditions to continue to be met. The applicant will need to invest money in one of the following within three months of moving to Italy:
- At least €2,000,000 in government bonds
- At least €500,000 invested in a current Italian company, or €250,000 in an Italian start-up
- At least €1,000,000 in a philanthropic donation (e.g. culture, education, research, arts, etc.)
A nulla osta will also need to be obtained, along with financial checks done to ensure the validity of the investor’s funds.
Other flat tax regimes
Italy offers a few other flat tax regimes for different categories, so if you do not qualify for the one for high-net-worth individuals, you might look into these others. We have written more extensively about them here, but will also summarize them briefly.
First, there is the 7% flat tax for pensioners. It applies to retirees who establish residency in certain municipalities with fewer than 20,000 residents in regions of Southern Italy. The pension must be received from abroad, and the applicant must not have lived in Italy in the past five years.
There is also a flat tax for individual businesses. The rate is 15% and might even drop down to 5% in some specific cases for the first five years. This applies to new businesses that have not exceeded €85,000 annually.
Citizenship by naturalization
Keep in mind that after residing in Italy for a certain number of years, you might be eligible for citizenship by naturalization. For non-EU citizens, this is after 10 years, for EU citizens after 4 years, and for those with Italian parents or grandparents after 2 years (3 years prior to the Tajani Decree). There are also income requirements, and an Italian language B1 exam must be passed.
How Italian Citizenship Assistance can help
If you are interested in learning more about if you qualify for Italy’s flat tax regime for high-net-worth individuals, have questions about visas, or would like to inquire more about Italian citizenship, our experts at Italian Citizenship Assistance would be more than happy to hear from you. Get in touch today at [email protected].
