🇮🇹 Italy tax

• Who: Not resident in Italy for at least nine of the ten tax periods before the option starts
• Limit: €300k/yr ≈ $335k

Optional annual lump sum replacing Italian tax on foreign-source income: EUR300,000 (≈ $335,000) for people transferring residence from 1 January 2026 (Law 199/2025), EUR200,000 (≈ $223,000) for transfers between 11 August 2024 and 31 December 2025, EUR100,000 (≈ $112,000) for earlier transfers; the effect ends after fifteen years. ^{1 2 3}

Taxed on

Foreign-source income of eligible individuals who transfer residence to Italy; Italian-source income is taxed under ordinary rules.

Who it applies to

• Not resident in Italy for at least nine of the ten tax periods before the option starts.
• The option is made in the tax return for the transfer year or the next one; an advance ruling request (interpello) is possible.
• Family members who meet the same residence test can be added at EUR50,000 (≈ $55,900) each a year from 1 January 2026 (EUR25,000 (≈ $27,900) for earlier cohorts).
• The option can exclude chosen foreign states, whose income is then taxed under ordinary rules with a foreign tax credit.

Exclusions

• Italian-source income stays under ordinary taxation.
• Gains on substantial participations (Art. 67(1)(c) TUIR) realised in the first five option periods are outside the lump sum.
• Revocation or loss of the option (for example for non-payment) bars a new option.

Limits

• EUR 300,000 a year (≈ $335,000) · Main taxpayer: residence transferred from 1 January 2026 (Law 199/2025 art. 1 paras. 25-26 raised EUR200,000 (≈ $223,000) to EUR300,000 (≈ $335,000))
• EUR 50,000 a year (≈ $55,900) · Per family member, residence transferred from 1 January 2026
• EUR 200,000 a year (≈ $223,000) · Main taxpayer: residence transferred 11 August 2024 to 31 December 2025
• EUR 25,000 a year (≈ $27,900) · Per family member, transfers before 1 January 2026
• EUR 100,000 a year (≈ $112,000) · Main taxpayer: transfers before 11 August 2024

Tax residence

The cohort is set by the date residence is transferred to Italy. The lump sum is paid in one instalment by the balance-payment deadline, and the option lapses after fifteen tax periods.

Visas

No visa is needed for the election; it is a tax option.

Other taxes

Italian VAT, social contributions and local taxes are separate.

Checked against official sources on 10 Oct 2026Change log

• On: Employment-type and professional income produced in Italy up to EUR600,000 (≈ $670,000) per year
• Limit: €600k/yr ≈ $670k

Only 50% of qualifying employment and self-employment income produced in Italy, up to EUR600,000 (≈ $670,000) per year, counts toward taxable income; 40% for workers with a minor child. ⁴

Taxed on

Employment-type and professional income produced in Italy up to EUR600,000 (≈ $670,000) per year; 50% of it (40% with a minor child) enters taxable income and is taxed at ordinary IRPEF rates.

Who it applies to

• Commit to Italian tax residence for at least four years and not have been resident in the three preceding tax periods.
• If the worker keeps the same employer or group as abroad, the required time abroad is six periods (seven if previously employed in Italy by that group).
• Work performed mostly in Italy and meet high-qualification or specialisation requirements of D.Lgs. 108/2012 and D.Lgs. 206/2007.
• Applies from the transfer year and the four following periods; lost with recovery if residence ends before four years.
• The 40% inclusion applies when the worker moves with a minor child or has or adopts one during the regime, and the child is resident in Italy.

Exclusions

• Income above EUR600,000 (≈ $670,000) per year receives no reduction.

Limits

• EUR 600,000 a year (≈ $670,000) · Annual income cap for the 50% (or 40%) inclusion

Tax residence

Benefit period five tax periods; three extra periods apply to people who moved their registered residence in 2024 and own a home in Italy used as their main residence that was bought by 31 December 2023 and within the 12 months before the move.

Visas

Independent of visa type.

Other taxes

Social contributions and VAT are separate.

Checked against official sources on 12 Oct 2026Change log

• On: Foreign-source income of any category

7% substitute tax on all foreign-source income for each of nine tax periods for foreign pension recipients moving to eligible southern municipalities; the population cap is 30,000 inhabitants from 7 April 2026 (previously 20,000). ^{5 6 7}

Taxed on

Foreign-source income of any category.

Who it applies to

• Receive pension income paid from abroad and transfer tax residence to a municipality in Sicilia, Calabria, Sardegna, Campania, Basilicata, Abruzzo, Molise or Puglia with no more than 30,000 inhabitants, or to a municipality of 30,000 or fewer affected by the 2009 or 2016 earthquakes.
• Not have been tax resident in Italy in the five tax periods before the one in which the option takes effect.
• Move from a country that has an administrative cooperation agreement on tax matters in force with Italy.
• Option valid for nine tax periods; municipal population is read from ISTAT data at 1 January of the year before the first period.

Exclusions

• Regions and municipalities outside the list are not eligible.

Tax residence

Option is exercised in the return for the transfer year.

Visas

Independent of visa type.

Other taxes

Italian-source income and local taxes remain under ordinary rules.

Checked against official sources on 12 Oct 2026Change log

• Who: Revenue or fees in the previous year not above EUR85,000 (≈ $95,000)
• Limit: €85k/yr ≈ $95k

A single 15% substitute tax on a flat-rate taxable profit for self-employed people with revenue up to EUR85,000 (≈ $95,000); 5% for the first five years of a genuinely new activity. ¹⁰

Taxed on

Revenue or fees multiplied by the profitability coefficient of the activity, less compulsory social contributions; the 15% replaces income tax and regional and municipal surtaxes.

Who it applies to

• Revenue or fees in the previous year not above EUR85,000, (≈ $95,000) and no more than EUR20,000 (≈ $22,300) gross spent on employees and collaborators.
• Residents in Italy, or residents of an EU or EEA state that exchanges information who earn at least 75% of their total income in Italy.
• The 5% rate applies for five years if no business or professional activity was carried on in the previous three years and the activity is not a continuation of employment or earlier work.

Exclusions

• People using special VAT regimes or other flat-rate income regimes.
• People whose work is mainly for a current or recent (two previous years) employer.
• Employees with employment income above EUR30,000 (≈ $33,500) in the previous year (EUR35,000 (≈ $39,100) for 2025 and 2026).
• Anyone who partners in certain companies or controls limited companies with related activity.

Limits

• EUR 85,000 a year (≈ $95,000) · Revenue or fee ceiling to enter and stay in the regime (leaving the next year if exceeded)
• EUR 100,000 a year (≈ $112,000) · Above this the regime ends in the same year and VAT is due from the transaction that crosses it
• EUR 20,000 a year (≈ $22,300) · Maximum gross spending on employees and collaborators

Tax residence

Non-residents are excluded, except residents of EU and EEA states that exchange information and who earn at least 75% of total income in Italy.

Visas

Independent of visa type; relevant to holders of self-employment permits who are tax resident in Italy.

Other taxes

Social contributions and VAT rules are separate.

Checked against official sources on 11 Oct 2026Change log