Headline benefit
€300k/yr substitute tax on foreign income (2026+)
Special tax regimes
🇮🇹Italy · 2026
Italy new-resident flat tax 2026
Italy’s HNWI new-resident regime replaces progressive IRPEF on foreign-source income with a fixed annual substitute tax. Budget Law 2026 raised the principal fee to €300,000 for transfers from 1 January 2026 (€50,000 per extended family member). Italian-source income stays on ordinary rules. Maximum term: 15 years.
By Sammy S. · Founder · AuthorUpdated for 2026
Italy
Country
Up to 15 years
Duration
30%
Effective rate on foreign income
IT
Calculator
Key finding
Italy flat tax in one sentence
Italy’s 2026 new-resident flat tax (Art. 24-bis) charges a fixed €300,000 annual substitute tax on foreign-source income for transfers from 1 January 2026 (prior transfers often keep €200,000; family extensions €50,000 each for 2026+). On €1,000,000 of foreign income that is a 30% effective rate; on €3,000,000 it is 10%. Italian-source employment remains on ordinary IRPEF.
Updated 2026-08-06 · Tax year framing 2026
What is Italy new-resident flat tax?
Italy’s HNWI new-resident regime replaces progressive IRPEF on foreign-source income with a fixed annual substitute tax. Budget Law 2026 raised the principal fee to €300,000 for transfers from 1 January 2026 (€50,000 per extended family member). Italian-source income stays on ordinary rules. Maximum term: 15 years.
Official name: Imposta sostitutiva per nuovi residenti (Art. 24-bis TUIR)
Legal basis: Art. 24-bis TUIR · Legge di Bilancio 2026 · Agenzia delle Entrate scheda neo-residenti
Duration
Up to 15 years
Country
Italy
Who typically qualifies?
- You transfer tax residence to Italy and were not Italian tax resident in at least nine of the ten preceding tax years (Art. 24-bis / Art. 2 TUIR).
- You elect the substitute-tax regime with Agenzia delle Entrate in the return windows that apply to your first resident year (or as otherwise allowed).
- The election covers foreign-source income — Italian employment, Italian business income, and Italian situs assets stay on ordinary IRPEF / local taxes.
- You pay the fixed annual substitute tax even if foreign income is lower that year.
Italy flat tax educational guide
How Italy’s substitute tax works
Art. 24-bis lets new Italian tax residents pay a fixed substitute tax instead of progressive IRPEF on foreign-source income. The fee is due each year the option applies, regardless of how large (or small) foreign income is.
Italian-source wages, Italian business profits, and Italian real estate remain on ordinary IRPEF / local surtaxes. The regime is aimed at people whose foreign income would otherwise dominate a worldwide IRPEF bill.
- 2026+ principal fee: €300,000 / year
- 2026+ family extension: €50,000 / relative
- Maximum duration: 15 years from the first option year
- Pay via F24 by the income-tax balance deadline
Who should consider it?
High-net-worth individuals with large foreign passive or business income who can comfortably pay the fixed fee. At €300,000/year, the break-even foreign income is high — below that, ordinary taxation (or another country’s regime) may be cheaper. Run the maths before relocating.
How it differs from Beckham / IFICI / 30%
Beckham Law and IFICI reshape tax on local employment income. The Dutch 30% ruling shrinks the Dutch wage-tax base. Italy’s Art. 24-bis is a fixed euro fee on foreign income — it does not flatten Italian salary tax.
Break-even maths (2026+ fee)
At €300,000/year, the effective rate on foreign income equals fee ÷ foreign income. Examples: €500,000 foreign → 60%; €1,000,000 → 30%; €2,000,000 → 15%; €3,000,000 → 10%. If your expected foreign income is modest, ordinary IRPEF (or another country’s regime) can be cheaper.
Remember: Italian-source salary is still taxed normally on top of the fee.
Italy flat-tax myths vs facts
Myth: “Italy has a 24% salary flat tax like Beckham.” Fact: Art. 24-bis is a fixed euro substitute tax on foreign income only.
Myth: “Family members are still €25,000 each after 2026.” Fact: Agenzia delle Entrate states €50,000 each for transfers from 1 January 2026.
Worked example — €1,000,000 foreign-source income (2026+ transfer)
High-net-worth individual who becomes an Italian tax resident on or after 1 January 2026 and elects Art. 24-bis TUIR substitute tax on foreign-source income. Italian-source employment and Italian situs assets stay on ordinary IRPEF / local rules.
Foreign-source income
€1,000,000
Ordinary worldwide IRPEF
Progressive (often punitive on large foreign income)
Substitute flat tax (2026+)
€300,000
Effective rate on foreign income
30%
Budget Law 2026 raised the principal fee to €300,000 for transfers from 1 Jan 2026 (earlier transfers generally keep €200,000). Family-member extensions are €50,000 each for 2026+ transfers (€25,000 under prior rules). Not the forfettario freelancer scheme.
Effective rate at the 2026+ €300,000 fee
| Foreign income | Fee | Effective rate |
|---|---|---|
| €500,000 | €300,000 | 60% |
| €1,000,000 | €300,000 | 30% |
| €2,000,000 | €300,000 | 15% |
| €3,000,000 | €300,000 | 10% |
Caveats
- Transfers from 1 Jan 2026: principal €300,000; family extension €50,000 each (Agenzia delle Entrate Budget Law 2026 notice).
- Transfers completed earlier generally keep the fee that applied when they opted in (often €200,000 principal / €25,000 family for mid-2023–2025 elections; earlier elections may still be on €100,000).
- This is not the forfettario simplified scheme for small freelancers, and not the separate impatriate worker relief.
- Omitted / partial payment of the substitute tax can cause decadenza from the regime.
Italy flat tax FAQs
No. Art. 24-bis is a fixed euro substitute tax on foreign-source income, not a percentage of Italian salary. Beckham Law is a Spanish IRPF flat rate on Spanish-source work income.
€300,000 per year for individuals who transfer Italian tax residence from 1 January 2026. Earlier elections generally keep the fee that applied when they opted in (often €200,000 for mid-2023–2025; some older elections remain on €100,000). Family extensions are €50,000 each for 2026+ transfers (€25,000 under prior rules), per Agenzia delle Entrate / Budget Law materials.
Effects cease after 15 years from the first tax year of the option, unless revoked earlier or lost through decadenza (for example unpaid substitute tax or leaving Italian tax residence).
Toggle Art. 24-bis in the Italy calculator to show the 2026+ €300,000 substitute fee (plus family add-ons) beside ordinary employment IRPEF. Italian salary take-home is unchanged — the fee applies to foreign-source income only.
No. Forfettario is a simplified regime for small freelancers / businesses under turnover caps. Art. 24-bis is the HNWI new-resident substitute tax on foreign income.
You generally must not have been an Italian tax resident in at least nine of the ten tax years before the option year (Art. 24-bis / Art. 2 TUIR).
Agenzia delle Entrate materials treat omitted or partial payment as a decadenza trigger — the regime can end, though prior years already paid may keep their effects. Pay on time via F24.
Other special tax regimes
- Beckham Law
24% flat on Spanish-source work (to €600k)
- IFICI
20% flat IRS on qualifying Portuguese income
- 30% ruling
Up to 30% of salary tax-free (2026)
Confirm current rules with the official tax authority before you move.