Why the flat tax is a bet on your income size
The €300,000 flat tax replaces all ordinary Italian tax on your foreign income — no matter how large. That makes it a simple bet:
- If your foreign income is very high (roughly €700k+ for a single applicant), ordinary tax at up to 43% would exceed €300k — so the flat tax saves you money, and the saving grows with income.
- If your foreign income is moderate, ordinary tax is less than €300k — so the flat tax is a waste. The regime is only for the genuinely wealthy.
- Predictability is the other draw: a fixed, known cost regardless of how your income swings, plus no foreign-asset reporting and no IVIE/IVAFE wealth taxes.
The calculator above finds your exact break-even and tells you, for your income, whether the flat tax saves or costs you money this year.
The 2026 increase and grandfathering
Italy has raised the flat tax twice in three years, but protects existing participants:
- 2017–2023: €100,000/year (€25,000 per family member).
- 2024–2025: €200,000/year for those who opted in during this window.
- From 1 Jan 2026: €300,000/year for new entrants, with €50,000 per family member.
Grandfathering is the key: your rate is locked at the year you transferred tax residence and opted in. Someone who entered in 2025 keeps paying €200k for the regime's full duration even now. That's why the calculator lets you pick your entry year — the right number depends entirely on when you started.
Italy vs Portugal vs UK: which regime?
Italy isn't the only European country competing for mobile wealth. The three leading regimes work very differently:
- Italy — fixed €300k. A flat amount regardless of income. Predictable, and cheapest in absolute terms for very high earners (€1M+ foreign income).
- Portugal — IFICI (the new "NHR 2.0"). A percentage rate (around 20% on qualifying income) rather than a lump sum — often cheaper for moderate foreign earnings.
- UK — FIG regime. Time-limited relief on foreign income/gains with careful planning, ending after a few years with a deemed charge.
The rule of thumb: the higher and more "passive" your foreign income, the more Italy's fixed cost favours you. For moderate income, a percentage-based regime usually wins. Model your own number above before deciding.
Frequently asked questions
Q. Who is eligible for the flat tax?
Individuals transferring tax residence to Italy who were NOT Italian tax resident in at least 9 of the previous 10 years. Nationality doesn't matter — Italians returning after long enough abroad can qualify too.
Q. Can my family join the regime?
Yes. Each family member (spouse, children, dependants) can opt in for an extra €50,000/year (2026 entrants; €25,000 for earlier ones), covering their own foreign income under the same flat regime. This calculator adds it to your total.
Q. How long does the regime last?
Up to 15 years from your first year of Italian tax residence. It can end earlier if you fail to pay the flat tax on time (late payment cannot be remedied) or revoke it. Once terminated it cannot be reactivated.
Q. Watch out for exit taxes from my current country?
Yes — this is commonly missed. Some countries (US, Canada, Australia, and Germany for long-term residents) levy an exit tax on unrealized gains when you leave. That one-off cost can offset the Italian saving, so factor it in before relocating.
Sources: Italian Tax Code Art. 24-bis (TUIR); 2026 Budget Law raising the flat tax to €300,000 and family levy to €50,000; PwC and Italian Revenue Agency guidance. Ordinary tax shown is a simplified IRPEF estimate excluding surcharges and deductions. This is an independent informational tool, not tax, legal or immigration advice. Verify all figures and eligibility with a licensed Italian tax adviser before relocating.
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