Moving to Italy While Keeping Foreign Income Under a Fixed Tax Regime

For many international individuals, the greatest challenge in relocating to a new country is ensuring that their global income, wealth structures and offshore assets remain protected and efficiently taxed. Italy has radically changed its position in this field by introducing a regime that allows new residents to relocate without dismantling their existing financial arrangements abroad. Under the Flat Tax system, it becomes possible to maintain foreign income and asset structures while paying a single annual substitute tax of €200,000, regardless of the amount generated outside Italy.

This approach has created a unique opportunity for investors, entrepreneurs, professionals and family offices who want to establish residency in a reputable EU jurisdiction without exposing their worldwide income to progressive taxation or reporting obligations.

Maintaining Offshore Income Without Restructuring

One of the most attractive aspects of the Italian regime is that it does not require the repatriation or reorganization of foreign income sources. Individuals with offshore companies, trusts, holding structures, investment portfolios or real estate assets can maintain these vehicles as they are, while benefiting from a predictable and capped tax exposure. This eliminates the need to unwind complex arrangements or transfer wealth into the Italian system, which is often a major obstacle in other European countries.

Income generated outside Italy—whether from dividends, capital gains, property, royalties, financial instruments or trust distributions—is covered by the substitute tax and not subject to progressive rates or repeated declarations.

No Obligation to Report Global Assets

A decisive difference compared to traditional residence models is the absence of wealth tax and global disclosure requirements. Individuals under the Flat Tax are not required to declare their foreign bank accounts, investment portfolios, companies or real estate holdings. This level of privacy is a significant departure from the increasing transparency rules in many OECD jurisdictions, where global asset reporting is the norm.

This discreet and compliant framework is particularly appealing to individuals accustomed to confidentiality and simplicity, without entering into structures that may raise scrutiny from financial institutions or tax authorities.

Predictability and Legal Certainty

The ability to replace global taxation with a fixed annual amount creates a level of stability rarely found in major economies. Entrepreneurs and investors often cite uncertainty as the main reason for keeping their residency detached from their lifestyle choices. Italy has reversed this logic by offering a regime that is both legally solid and financially advantageous, allowing foreign residents to plan their affairs over the long term.

The regime is valid for up to fifteen years, offering clarity on future obligations and allowing wealth planning, inheritance strategies and asset protection to be structured with confidence.

A Base in Europe Without Losing Global Reach

Choosing Italy as a tax residency does not imply abandoning international activities or limiting global positioning. On the contrary, it allows high-net-worth individuals to remain fully active abroad while securing a prestigious and stable residency within the European Union. This is especially valuable for those operating between multiple jurisdictions who need an anchor country that supports rather than complicates their financial reality.

Cities like Milan, Florence, Rome and Turin offer international connectivity, luxury real estate and access to high-level services, while regions like Tuscany, Lake Como and the Italian Riviera provide privacy and lifestyle appeal without compromising access to professional infrastructure.

From Tax Liability to Lifestyle Strategy

Relocation under the Flat Tax Regime is not about escaping taxation but about transforming the way residency interacts with wealth. Individuals who once separated lifestyle from tax planning can now merge the two by choosing Italy as a place to live, invest, educate their families and develop long-term projects—while keeping their international income streams intact.

Unlike temporary incentives in other jurisdictions, Italy offers a complete framework that integrates legal certainty, lifestyle value and fiscal efficiency in a way that was previously unavailable in the Italian system.

Tailored Assistance for a Seamless Transition

Relocating while maintaining foreign assets requires a coordinated approach that involves legal, fiscal, immigration, real estate and logistical planning. When handled professionally, the process is discreet and smooth, without disruptions to existing structures or personal routines. The real benefit emerges when all aspects are managed through a single strategy designed around the individual’s global position and long-term goals.

Considering a Move to Italy While Keeping Your International Income?

We provide confidential, end-to-end assistance to individuals who want to relocate to Italy under the Flat Tax Regime while preserving their offshore structures, privacy and financial flexibility.

📩 Email: info@knotted.ch

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