How to Move to Italy Under the €100k (or €200k) Flat Tax Regime

Relocating to a new country as a high net worth individual is never just about lifestyle — it's a strategic decision, often driven by a desire to optimize taxation, structure wealth more efficiently, and gain access to opportunities that align with a global life. In this context, Italy has quietly emerged as one of Europe’s most attractive destinations, thanks in large part to a unique fiscal incentive: the Italian flat tax regime for new residents.

A Regime Designed for Global Citizens

Introduced in 2017, the flat tax regime was specifically created to attract wealthy individuals with international income streams. Unlike ordinary Italian taxpayers, who are subject to progressive income tax rates that can exceed 43%, eligible newcomers can opt to pay a fixed annual tax of €100,000 on all foreign income, regardless of the amount or origin.

This regime is not based on how much you earn abroad, nor does it require you to report every single transaction or foreign holding. It simplifies global taxation, offering both predictability and privacy, making it particularly appealing to entrepreneurs, private investors, and families with complex wealth structures.

In August 2024, the regime was expanded: if you’re relocating with family members who also earn income abroad, you may opt to extend the regime to them for an additional flat payment of €100,000 per family member. This brings the total to €200,000 or more, depending on how many individuals you include — but still a very competitive rate in international comparison.

Who Is Eligible?

Eligibility is relatively straightforward:You must become an Italian tax resident and have not been tax resident in Italy for at least 9 of the previous 10 years. That’s it.

There are no wealth thresholds, no minimum income, and no requirement to invest in the country — though many do, particularly in real estate or Italian business ventures, to strengthen their ties with the country and benefit from other incentives.

From our experience, this regime is ideal for:

• Business owners and executives with international operations

• Crypto investors with multi-jurisdictional holdings

• Private clients receiving dividends, interest, or capital gains abroad

• Individuals with family offices or trust structures

• Retirees with foreign pensions or passive income streams

It’s also worth noting that some clients choose to exclude specific countries from the regime (such as where they already pay taxes or have treaty benefits), and apply the flat tax only to certain jurisdictions. The structure is flexible, and planning ahead is key.

How Does It Work in Practice?

Once you've established tax residency in Italy (generally by spending more than 183 days per year in the country), you apply for the regime through the Italian Revenue Agency. You can do this before or after you relocate, but we always recommend beginning the planning well in advance.

Once approved, the €100,000 flat tax is paid once a year — no matter if you earned €1 million or €100 million abroad. You don’t need to report individual income items or disclose foreign assets under standard rules, although compliance and transparency remain essential for long-term peace of mind.

Italian-source income (such as rental income from Italian properties or salary from Italian companies) is taxed under ordinary rules, but in practice many clients structure their affairs to limit or optimize such exposure.

What About Wealth, Succession and Crypto?

Italy does not levy a wealth tax, which is a welcome surprise for many clients used to the annual asset-based levies in countries like Switzerland or Spain. Moreover, inheritance and gift tax rates are relatively low, and careful planning can result in tax-neutral generational transfers.

For crypto holders, the flat tax regime can be particularly effective. Since crypto assets held abroad fall under the foreign income umbrella, their gains can be covered by the flat tax — provided the right structures and custody solutions are used.

At Knotted, we often support clients in combining this regime with life insurance wrappers, foreign trusts, and special purpose vehicles to manage wealth in a compliant yet efficient way, especially when dealing with digital assets.

Why People Are Choosing Italy Now

Beyond the numbers, Italy offers a quality of life that few other countries can match.From Tuscany to Lake Como, from Rome to Sicily, the country provides a blend of natural beauty, heritage, cuisine, and culture — all within a jurisdiction that increasingly welcomes global talent and capital.

Over the past five years, we’ve witnessed a growing number of clients relocating to Italy under this regime. For some, it’s a way to return to their roots. For others, it’s a lifestyle upgrade that finally aligns with their wealth strategy. And for a growing group, especially post-Brexit or post-pandemic, it’s about resilience and diversification.

Knotted: Your Guide to a Smart Relocation

Our mission at Knotted is to simplify complex relocations for sophisticated individuals and families. That means more than tax advice — we coordinate all aspects of your move: from visa and residence permit assistance, to real estate sourcing, to wealth and estate planning.

We operate across both Switzerland and Italy, offering a unique cross-border perspective, and we speak the language of international families and professionals.

Interested in exploring the Italian flat tax regime?

📩 Write us at info@knotted.ch or

📲 message us on WhatsApp at +41 76 771 30 22 — and let’s begin mapping your journey.