Following the 2026 Annual Budget has come an important change to one of Italy’s flat tax regimes, an incentive that provides some tax relief for persons of certain qualifications. In this article, we cover what is changing this year, along with visa options to explore if you would like to call Italy your home.
What’s changing for the flat tax regime for high-net-worth individuals
The change comes for the flat tax regime for high-net-worth individuals, or those who hold liquid assets above $1 million in foreign income. In 2026, the flat tax will be raised from €200,000 to €300,000 for qualifying persons, and from €25,000 to €50,000 for qualifying family members. This follows a raise in 2024 from €100,000 to €200,000. These changes are only active in 2026 and will not be retroactively applied to those who already benefit from the regime. This flat tax is only for foreigners who relocate to Italy and have not lived there for 9 out of the past 10 years. It can apply for up to 15 years. It also exempts Italian gift and inheritance tax.
How to legally come to Italy: the Investor Visa and the Elective Residency Visa
There are two visas that might be of particular interest to those seeking to benefit from the flat tax regime for high-net-worth individuals: the Investor Visa and the Elective Residency Visa.
The Investor Visa allows non-EU citizens to reside in Italy for up to two years (with the possibility of renewal so long as conditions continue to be met) if they invest in Italy’s economy. Specifically, this means an investment of at least €500,000 in a current Italian company, €250,000 in a startup, or €2,000,000 in government bonds.
The Elective Residency visa is specifically for passive income, and therefore tends to attract retirees. Anyone, though, can apply for it, but all income must be passive in nature (e.g. investments, pensions), and the applicant cannot work while in Italy. It is valid for one year, with the possibility of renewal.
How other flat tax regimes compare
There are other flat tax regimes in Italy besides the one for high-net-worth individuals. Those with a foreign pension who reside in a qualifying municipality in Southern Italy can take advantage of a 7% flat tax. This generally means that the municipality has fewer than 20,000 residents. The person must also not have reside in Italy in 9 out of the last 10 years. There is also a flat tax of between 5% and 15% available for new businesses. Income must also not have exceeded €35,000 in the past year, with employee expenses not above €20,000.
Ultimately, the flat tax regime you choose to benefit from should be the one that best fits your particular circumstances and desires when it comes to relocating to Italy.
Citizenship by naturalization
Finally, if you are a non-EU citizen and reside in Italy for at least 10 years, you might qualify for citizenship by naturalization. (For EU citizens, the time required is 4 years, while those with Italian parents or grandparents have only 2 years).
To apply, you will also need a certificate showing knowledge of the Italian language at at least the B1 level, and proof of income of at least €11,362.05 plus €516.46 per dependent child. You will also need a background check issued by your country of origin.
Let Italian Citizenship Assistance help
If you are interested in benefiting from the tax regime for high-net-worth individuals, need help with your citizenship case, or have any other questions about relocating to Italy, our friendly experts at Italian Citizenship Assistance are here to help! You can contact us today at [email protected].
