Tax Incentives for high net-worth individuals moving to Italy: Flat Tax up to €200,000

For individuals with high earning capacity who are considering returning to Italy, a tax benefit is available under Article 24-bis of the TUIR, as amended by Law No. 232/06.

This optional regime provides a substitute taxation, similar to a flat tax, with the aim of attracting individuals with significant foreign investments and encouraging the relocation of high-earning individuals to Italy. The objective is to encourage the return of entrepreneurs and high net worth individuals (HNWIs).

The tax-advantaged regime for “new residents” in Italy is available to individuals who have spent at least nine years abroad and have a significant earning capacity upon returning to the country. As outlined in Article 24-bis of the TUIR, this regime offers a flat-rate taxation option on foreign income up to 100,000 euros annually, with this amount set to increase to 200,000 euros for returnees from 2025 onwards. For individuals who relocate to Italy after August 10, 2024, and who meet the requirements of Article 24-bis of the TUIR (i.e., not having been resident in Italy for at least nine of the last 10 years), the substitute tax initially set at 100,000 euros per year on foreign income will be increased to 200,000 euros. The amount available for each family member included in the scheme remains fixed at €25,000. This scheme is valid for a period of 15 years.