‍Italy's Flat Tax Regime for New Residents: Growth, Numbers and Outlook

It's no surprise that Italy is increasingly becoming a destination of choice for high-net-worth individuals, entrepreneurs, and international families, drawn by the country's great quality of life, a stable environment and a favorable tax regime. Official numbers now confirm the trend: the Flat Tax Regime for new residents is growing at a record pace.

What Is the Italian Flat Tax Regime?

For foreign individuals who decide to become Italian tax residents and who have not been resident in Italy for at least 9 out of the previous 10 years, the so-called "Article 24-bis regime" (introduced into the Italian Income Tax Code by the 2017 Budget Law — [riferimento da verificare: L. 232/2016]) allows them to pay a fixed annual amount on foreign-source income, rather than applying the normal progressive tax rates.

Here are the main benefits of the Italian Flat Tax Regime for new tax residents in Italy: foreign financial assets do not need to be reported under the Italian tax monitoring regime (RW Form); foreign inheritance and gift tax do not apply; the regime can be extended to family members at the annual rate of €25,000 per person; all Italian tax treaties for the avoidance of double taxation (DTC treaties) remain accessible under the Flat Tax Regime; and the regime is valid for up to 15 years.

Growth of the Regime: Official Numbers

The Flat Tax Regime has been experiencing impressive growth. As reported by the Corte dei Conti (Italy's Court of Auditors), in 2022 a total of 1,136 individuals benefited from the regime, while in 2023 this number increased to 1,495 - a growth rate of 31.6%, with 359 new entrants in 2023 alone, the largest number since the regime's introduction.

Why Is This Regime Becoming More Popular?

Several global events are reinforcing Italy's position as a top destination. The abolition of the UK non-dom regime has pushed many former non-doms to explore alternative jurisdictions, with Italy emerging as a top contender. More broadly, global financial turbulence, geopolitical instability, or simply a change in life circumstances often push individuals to reconsider their domicile - and Italy, with its unique combination of quality of life, stability and favorable taxation, sits high on the shortlist. The increase of the lump sum to €200,000 for new applicants, introduced in 2024, has not slowed this momentum: if anything, it has repositioned the regime even more clearly at the top end of the market.

Who Is Using It?

The growth is not just in numbers but in profiles. Beneficiaries tend to settle in Italy's most prestigious locations - Milan, Florence, Rome, Lake Como - as well as in smaller towns offering exclusive villas and privacy. The regime is attracting a wide array of profiles, from international investors and CEOs to athletes, crypto entrepreneurs, and retired executives. In other words: individuals with complex international wealth.

Is It Still Worth It at €200,000?

While the original €100,000 amount was arguably priced below its value, the higher threshold of €200,000 makes the regime clearly targeted at the ultra-wealthy - and for them, the answer is yes, it is still worth it. The €200,000 flat tax represents an efficient cap on international tax liability for individuals with significant foreign-source passive income, capital gains, dividends, or trust distributions.

This is why we at Move To Dolce Vita help international clients structure their wealth and assess their eligibility for the Flat Tax Regime. We also prepare pre-ruling applications with the Italian tax authorities when needed.

Considering Moving to Italy?

Our boutique firm specializes in helping international clients relocate to Italy under its most favorable tax regimes. We combine legal, tax and immigration expertise to make your relocation seamless and fully compliant. Want to design your Dolce Vita in Italy? Get in touch - the timing has never been better.

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