Living Between Two Countries: How Partial Relocation Works Under Italy’s Flat Tax Regime

For many successful entrepreneurs, investors and global families, relocating does not always mean starting over. The modern world allows people to live and work across borders, maintaining business interests abroad while enjoying the benefits of residency in a stable and attractive jurisdiction. Italy’s Flat Tax Regime was designed precisely with this flexibility in mind — making it possible to move one’s fiscal residence without giving up global activity, travel or business presence elsewhere.

This is the essence of partial relocation: living primarily in Italy, enjoying its lifestyle and fiscal advantages, while continuing to manage companies, properties or investments abroad.

A Residency Model Built for Mobility

Unlike other European jurisdictions that impose complex stay requirements or heavy local reporting, Italy focuses on the center of vital interests and tax residency registration. Individuals who spend most of their time in Italy, have their home base and family here, and register as residents under the Flat Tax are considered compliant.

The regime does not prohibit travel or international activity — in fact, it encourages mobility. Entrepreneurs and investors who spend part of the year abroad for business or family reasons can still maintain their Italian residency, as long as their fiscal and personal life remain primarily centered in Italy.

This flexibility is what makes the system attractive to globally mobile individuals, especially those who manage international holdings or oversee businesses in multiple time zones.

Keeping Business Abroad While Residing in Italy

One of the great strengths of the Flat Tax Regime is that it allows foreign income to remain abroad and taxed through the fixed substitute payment of €200,000 per year. There is no need to restructure existing companies, trusts or holding entities, nor to repatriate income to Italy.

This means that entrepreneurs can continue to run businesses from London, Dubai, Singapore or Zurich, while being personally resident in Italy. Profits earned abroad remain outside the Italian tax base, as long as the income is classified as foreign-source.

The ability to keep one’s global structure unchanged — yet gain access to EU residency, legal certainty and Italian lifestyle — has made this regime a cornerstone for those seeking fiscal optimization without disruption.

Balancing Life Between Two Worlds

Partial relocation is not only about tax planning; it is also about quality of life. Many families divide their time between countries, spending part of the year in Italy and part abroad. Italy’s geography, connectivity and climate make this incredibly easy.

Cities such as Milan, Florence, Rome and Turin offer international airports with direct connections to all major business hubs. From Milan, London is a two-hour flight; from Florence or Rome, Geneva and Paris are just over an hour away. This accessibility allows residents to stay operational abroad while enjoying Italian life for most of the year.

For families, this model offers the best of both worlds — children attend international schools in Italy, while parents continue to oversee global operations. The result is a relocation that feels natural and balanced, not restrictive.

Legal and Fiscal Considerations

Even though Italy’s regime is generous, proper planning and documentation are essential. Residency registration, timing of relocation, and coordination with existing fiscal positions abroad must be handled carefully. The concept of “center of vital interests” must align with reality — meaning that family, housing and personal life are clearly established in Italy.

For individuals who maintain homes or offices abroad, it is crucial to document the nature of their presence outside Italy to avoid dual residency conflicts. When structured correctly, this balance allows full access to Italy’s benefits without friction or ambiguity.

A well-managed partial relocation can also simplify estate planning, succession management and cross-border banking relationships, since Italy is a recognized G7 jurisdiction with transparent and stable legislation.

The Strategic Value of Italian Residency

In a world where many countries are tightening their tax regimes or adding bureaucratic burdens to mobility, Italy stands out for its clarity, stability and sophistication. It provides a legitimate, EU-based solution for individuals who want to anchor themselves in a country that respects privacy while encouraging global engagement.

For entrepreneurs and families, Italian residency under the Flat Tax Regime is not a restriction — it is a strategic positioning choice: one that combines freedom of movement, legal credibility and lifestyle excellence.

Planning Your Partial Relocation to Italy

Every international situation is unique, and partial relocation requires a personalized approach. When properly coordinated, Italy’s Flat Tax Regime allows individuals to live between two countries — staying mobile, connected and financially efficient — while enjoying the comfort, culture and prestige of Italian life.

Ready to Begin Your Relocation Journey?

We provide confidential, end-to-end support for individuals and families who wish to relocate to Italy — full-time or partially — under the Flat Tax Regime. From fiscal planning and compliance to property, schooling and lifestyle setup, every element is managed with precision and discretion.

📩 Email: info@knotted.ch

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