Relocation tax guideMoving to Italy: Taxes for Expats 2026
Italy taxes residents on worldwide income at rates up to 43% plus regional and municipal surcharges. New residents can elect a flat tax on all foreign income - EUR 300,000 a year for those transferring residence from 2026 (EUR 200,000 for 2024-2025 movers, EUR 100,000 for earlier electors) - for up to 15 years, or use the impatriate regime that exempts part of Italian work income. Residency turns on 183 days or registry enrollment.
Italy pairs a high standard tax burden with two of Europe's most generous inbound regimes: a flat tax that caps the tax on all foreign income for wealthy new residents, and an impatriate regime that exempts part of Italian work income. Both have been repeatedly changed - the flat-tax figure has risen twice. This guide explains who each regime helps, how they compare with the standard rules, and when Italy treats you as a tax resident.
Italy: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 24%Corporate income tax (IRES); regional production tax (IRAP, ~3.9%) applies in addition | PwC Worldwide Tax Summariesas of 2026-02-25 |
| Top personal income tax | 43%Top national rate; regional and municipal surcharges apply in addition | PwC Worldwide Tax Summariesas of 2026-02-25 |
| VAT / GST (standard) | 22%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-02-25 |
| Capital gains | 26%Substitute tax on individual financial capital gains | PwC Worldwide Tax Summariesas of 2026-02-25 |
| Inheritance / wealth tax | Up to 8%4% (spouse/children), 6% (siblings/relatives), 8% (unrelated), above applicable thresholds | PwC Worldwide Tax Summariesas of 2026-02-25 |
The Flat-tax for new residents + impatriate regime regime
The neo-residents flat tax on foreign income is EUR 300,000/year for those transferring residence from 1 January 2026, EUR 200,000 for transfers from August 2024, and EUR 100,000 for those who elected earlier; the impatriate regime was reformed - its exemption reduced - from 2024.
Two separate regimes. The neo-residents flat tax lets a qualifying new resident pay a fixed annual substitute tax on ALL foreign-source income, whatever its size, for up to 15 years - useful for the globally wealthy. The amount is set by the year residence is transferred and has risen over time. The impatriate regime instead exempts a portion of Italian-source employment or self-employment income for inbound workers who meet conditions, for a limited period.
- Flat tax: a fixed substitute amount covers all foreign-source income, whatever its size, for up to 15 years - EUR 300,000/year for transfers from 2026, EUR 200,000 for 2024-2025 transfers, EUR 100,000 for earlier electors.
- Family members can be included for an additional fixed amount each (EUR 50,000 per person under the current rules).
- Eligibility for the flat tax requires not having been Italian tax resident in 9 of the previous 10 years.
- Impatriate regime: a partial exemption (reduced to 50% from 2024, on income up to a cap) on Italian work income for up to 5 years, subject to conditions.
Source: PwC Worldwide Tax Summaries - Italy (as of 2026-06-24).
| Item | Under a new-resident regime | Standard resident rules |
|---|---|---|
| Foreign-source income (flat-tax election) | Fixed EUR 300,000/year from 2026 (EUR 200,000 / EUR 100,000 for earlier movers), any amount, up to 15 years | Progressive up to 43% plus surcharges (worldwide) |
| Italian work income (impatriate election) | Partially exempt (50% from 2024, up to a cap), up to 5 years | Fully taxable |
| Prior-non-residence required | 9 of last 10 years (flat tax); 3 years (impatriate) | Not applicable |
Source: PwC Worldwide Tax Summaries - Italy (as of 2026-06-24).
When you become a tax resident
You are generally an Italian tax resident if, for more than half the year, you are registered in the resident population registry (anagrafe), or your domicile or residence under the civil code is in Italy; the 2024 rules added a day-count test alongside these. Residents are taxed on worldwide income unless a new-resident regime applies.
Source: PwC Worldwide Tax Summaries - Italy (Residence) (as of 2026-06-24).
Two regimes: flat tax vs impatriate
The neo-residents flat tax suits people with large foreign income or gains: a single fixed payment covers all of it, so the effective rate falls as the income rises. The amount has risen with each reform - EUR 100,000 a year when introduced, EUR 200,000 for transfers from August 2024, and EUR 300,000 for those transferring residence from 1 January 2026. The figure that applies is fixed by the year you move, and family members can be added for EUR 50,000 each.
The impatriate regime is aimed at workers, not the globally wealthy: it exempts part of the Italian-source employment or self-employment income of a qualifying inbound worker. A 2024 reform reduced the exemption (commonly to 50%) and tightened the conditions, so the older, more generous percentages no longer apply to new arrivals.
Standard Italian taxation
Outside these regimes, Italy taxes residents on worldwide income at national rates up to 43%, with regional and municipal surcharges on top, a 26% substitute tax on most financial capital gains (a higher rate applies to crypto), and an inheritance tax of 4-8% above generous thresholds. The flat tax shields foreign income but not Italian-source income, which is taxed normally.
Before you move: what to weigh
- The flat-tax figure depends on when you moved: EUR 300,000/year from 2026, EUR 200,000 for August-2024-to-2025 transfers, EUR 100,000 for earlier electors.
- The impatriate exemption was cut and its conditions tightened from 2024 - verify the current percentage and cap for your start date.
- Regional and municipal surcharges sit on top of the 43% national rate, so the standard burden is higher than the headline.
- US citizens remain taxable by the US on worldwide income; the Italy-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Italy.
What is Italy's flat tax for new residents?
A regime letting a qualifying new resident pay a fixed annual substitute tax on all foreign-source income, regardless of amount, for up to 15 years. The figure is EUR 300,000 a year for transfers from 2026, EUR 200,000 for 2024-2025 movers, or EUR 100,000 for earlier electors, plus EUR 50,000 per family member. Italian-source income is still taxed normally.
What is the impatriate regime in Italy?
It exempts part of the Italian work income of a qualifying inbound worker for up to five years. A 2024 reform reduced the exemption, commonly to 50% on income up to a cap, and tightened eligibility, so the older 70-90% versions no longer apply to new arrivals. Confirm the current terms for your case.
When are you an Italian tax resident?
Generally when, for more than half the year, you are registered in the resident population registry or your domicile or residence is in Italy; 2024 added a day-count test. Residents are taxed on worldwide income unless a new-resident regime applies. Treaty rules can change the outcome.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Italy as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.