Italy's flat-tax regime, explained — then your wealth, advised independently.
A clear guide to the €300,000 flat-tax regime for new residents (Art. 24-bis), plus independent, fee-only advice on your investment portfolio — and coordination with our trusted tax and relocation partners. In English, with no product sales and no conflicts of interest.
Italy's flat tax for new residents: what you need to know
What is the regime?
Introduced in 2017 (Art. 24-bis of the Italian Income Tax Code), the regime lets qualifying new residents replace ordinary Italian taxation on all of their foreign-source income with a single fixed annual amount — no matter how much they actually earn abroad.
Who qualifies?
Anyone transferring their tax residence to Italy who has not been an Italian tax resident for at least 9 of the previous 10 tax years. It is open to foreign nationals and returning Italians alike.
How much do you pay?
For options exercised from 1 January 2026, a substitute tax of €300,000 per year on all foreign income, plus €50,000 per year for each family member included (both figures were doubled by the 2026 Budget Law). Italian-source income remains taxed under ordinary rules.
What is exempt?
During the regime you are exempt from IVIE/IVAFE wealth taxes on foreign assets, from the RW foreign-asset reporting obligation, and from Italian inheritance and gift tax on assets held abroad.
How many people have used it?
Adoption has grown from just 94 people in 2017 to roughly 1,600 new entrants in 2024 — an estimated 5,000+ beneficiaries cumulatively by the end of 2025. A small but fast-growing community of internationally mobile, high-net-worth individuals.
General information, current as of 2026 — not tax advice. Tax rules change; the election and filings must be handled with a qualified Italian tax advisor (commercialista), whom we coordinate with.
No Italian inheritance or gift tax on your foreign assets
For as long as you hold the regime, assets and rights held abroad pass on — by inheritance or gift — free of Italian succession and donation tax. For internationally invested families, this is one of the regime's most valuable and underappreciated advantages, and a central pillar of estate planning.
Is the flat tax worth it for you?
The €300,000 flat tax replaces ordinary Italian tax on your foreign income. Broadly, it becomes advantageous once ordinary taxation on that income would be more than €300,000. Use the illustrative calculator below to see the break-even point for your situation.
Non-financial income — foreign employment, self-employment, business or rental income — is taxed at higher ordinary rates, so the flat tax pays off at a much lower level than for investment income. Each family member added costs a further €50,000 but also brings their own foreign income fully under the regime.
Illustrative only. Real Italian taxation depends on income type, applicable rates and surcharges, tax treaties and your personal circumstances. Investment income is often taxed at 26% and top-bracket income at roughly 43–47% including surcharges. Always confirm with a qualified tax advisor (commercialista).
Independent, fee-only advice on your portfolio
The flat tax settles how your foreign income is taxed. It says nothing about how your capital should be invested once you live in Italy. We are 100% independent: no products to sell, no commissions — we advise, you decide, and your assets stay with your bank.
Independent portfolio check-up
An objective review of your holdings, costs and risk — uncovering the hidden fees and retrocessions that quietly erode long-term returns.
Portfolio built for Italian residency
Restructuring around low-cost, tax-efficient instruments (ETFs at the core), with cross-border and currency exposure addressed coherently.
Professional reporting & monitoring
Continuous monitoring with professional reporting (WealthView platform), market views and tactical asset allocation — technology with a human advisor at your side.
Fee-only, no conflicts
We are paid only by you, through a transparent fee. Never by the banks or funds whose products might end up in your portfolio.
One coordinated team for your move
Relocating under the flat tax touches tax, legal and practical matters well beyond investments. We work alongside a network of trusted partners so the whole move is handled coherently — you deal with one point of contact, in English.
Tax & legal partners
Qualified commercialisti and lawyers handle the flat-tax election, filings and any advance ruling. We coordinate so your investment strategy and tax position are aligned from day one.
Relocation partners
Immigration, residency and settling-in support — from visas and registration to finding a home — through relocation specialists we work with regularly.
How we start
Introductory call
A free, no-obligation conversation in English about your situation and goals.
Portfolio & cost analysis
An independent review of your current holdings, costs and risk — with clear, written findings.
A plan aligned to Italy
A tailored strategy for your new residency, coordinated with our tax and relocation partners.
Let's talk about your move to Italy
A free, confidential introductory call — in English, with no obligation.
Book a free call →or read the complete guideThis page is provided for general information only and does not constitute tax, legal or personalised investment advice. AC Advisor is an independent financial advisor registered with the Italian OCF (Reg. no. 1145) and does not provide tax or legal services. Tax figures reflect rules in force in 2026 and may change; the flat-tax election and related filings must be handled with a qualified Italian tax advisor (commercialista). Adoption figures are based on public estimates. Last updated: 2026.