Italy’s Flat Tax Program Explained 2025

Italy has become an increasingly attractive destination for high-net-worth individuals (HNWIs) and international investors, thanks to its flat tax program. Introduced in 2017 and still highly competitive in 2025, this regime offers a simple and predictable tax structure designed to draw global wealth creators, entrepreneurs, and retirees.

The Italian flat tax allows eligible new residents to pay a fixed annual tax of €100,000 on their worldwide income, regardless of how large that income may be. This makes it particularly appealing for individuals with significant global earnings from investments, businesses, or royalties. Family members can also be included in the scheme by paying an additional €25,000 per person per year.

Key benefits of the program include:

• Certainty and simplicity – Instead of navigating Italy’s progressive tax rates, residents pay one predictable flat fee.

• Global tax planning advantages – The program exempts participants from declaring foreign assets or income in Italy, significantly reducing administrative burdens.

• Inheritance and gift tax relief – Foreign assets are generally excluded from Italian inheritance and gift taxes.

• Lifestyle benefits – Investors gain the right to live in Italy, enjoying world-class culture, healthcare, and EU mobility.

The flat tax regime is valid for up to 15 years, offering long-term stability. Applicants must not have been Italian tax residents for at least nine of the previous ten years.

For HNWIs seeking both lifestyle and tax efficiency, Italy’s flat tax is one of Europe’s most attractive options. It allows investors to secure residency in a G7 country, enjoy access to the EU, and manage global wealth in a tax-efficient environment.

In 2025, Italy continues to position itself as not just a cultural haven, but also a leading hub for smart wealth planning.