Regime Rate
100%
Under the Flat Tax for HNW
Standard Top Rate
43%
without this regime
Duration
15 yrs
Maximum 15 years from application
Target Profile
Lump-Sum Tax
Italy
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Flat Tax for HNW
€150 000
Standard Rate
€45 150
Annual Saving
+€0
Eligibility Requirements
Who qualifies?
- High-net-worth individuals transferring tax residency to Italy
How the Regime Works
Full details
€100,000/year flat tax replacing all Italian income tax on foreign-source income. €25,000 per additional family member. No CFC rules on foreign assets under this regime.
Regime vs Standard Rates in Italy
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 43% | 100% | — |
Frequently Asked Questions
What is the Flat Tax for HNW in Italy?
The Regime Forfettario per Neo-Residenti is a special tax regime in Italy that provides 100% flat rate to qualifying individuals or entities. €100,000/year flat tax replacing all Italian income tax on foreign-source income. €25,000 per additional family member. No CFC rules on foreign assets under this regime. Legal basis: Art. 24-bis TUIR, introduced by Legge 232/2016.
Who is eligible for the Flat Tax for HNW?
Eligibility for the Flat Tax for HNW is limited to: High-net-worth individuals transferring tax residency to Italy. Applicants typically must not have been Italy tax residents during a specified prior period. Always verify current conditions at the source: Art. 24-bis TUIR, introduced by Legge 232/2016.
How much tax do you pay under the Flat Tax for HNW?
Under the Flat Tax for HNW, you pay 100% flat rate on qualifying income — significantly lower than Italy's standard top rate of 43%. On €150,000 gross, you save thousands of euros per year.
How long does the Flat Tax for HNW last?
The Flat Tax for HNW lasts for 15 years from the year you first qualify. After this period, standard Italy tax rates apply unless you qualify for another regime or change tax residency.
How do I apply for the Flat Tax for HNW?
Application procedures for the Flat Tax for HNW are set out in Art. 24-bis TUIR, introduced by Legge 232/2016. You typically need to file a formal application with Italy's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.