Italy’s flat-tax rate for wealthy foreigners in exchange for residency has been raised from €100,000 to €200,000 with immediate effect by Prime Minister Giorgia Meloni. Existing residents will still enjoy the original rate.  

It was announced on 7th August that wealthy foreigners relocating to Italy will now be subject to an increased levy of €200,000 on foreign income, up from the €100,000 lump sum enjoyed by those who have been living in the nation since the original rate was introduced in 2017. The change in policy will not affect those living in Italy prior to the increase.  

The flat-tax applies to worldwide income earned outside of Italy, including income generated by real estate assets and foreign financial investments. It also provides exemptions from inheritance taxes. It can be applied for a maximum of 15 years by individuals who have not been tax resident in Italy for nine of the previous 10 years. Family members can also benefit from the flat-tax policy for an additional €25,000 per person on an annual basis. Revenue generated in Italy is subject to domestic taxation regimes. 

Between 2017 and the end of 2023, the tax enticed almost 4,000 HWNIs to Il Bel Paese, according to that Italian Ministry of Finance. Research by Maisto e Associati, an Italian tax law firm, suggests that there was a particular boom in wealthy people relocating to Italy in light of its favourable flat-rate last year. As many as 1,200 high-net-worth-individuals are believed to have moved to Italy in 2023.  

Read more:  

Flat-tax and lifestyle: how Italy is seducing the world’s UHNWIs 

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