Italy Courts the Ultra Wealthy with Flat Tax!
October 21, 2025
“300,000 Euro flat tax lures global elite.”
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Italy’s government plans to raise its special flat-tax regime for wealthy new residents, increasing the annual levy on foreign-sourced income from €200,000 to €300,000 beginning in 2026. According to Reuters, the measure is part of Italy’s upcoming budget law and is designed to boost fiscal revenue while maintaining the country’s appeal to high-net-worth individuals seeking tax certainty and a European base. The program -first introduced in 2017 -allows qualifying individuals who move their tax residence to Italy to pay a fixed annual amount instead of progressive rates on their worldwide income, a system that The Financial Times describes as “one of Europe’s most generous tax regimes for the wealthy.”
Despite the proposed increase, experts suggest the program remains competitive. Under the current structure, eligible individuals pay the flat fee instead of standard income taxes on foreign earnings, and they are also exempt from wealth and inheritance taxes on assets held abroad. As Withersworldwide explains, participants “can shield their overseas assets from Italian reporting requirements,” offering both privacy and predictability. The Italian Lawyer further notes that this flat-tax option is particularly attractive to individuals and families with significant foreign income -those earning well above €1 million annually still see it as a cost-effective alternative to higher tax jurisdictions such as France or Spain.
The lifestyle incentives are equally strong. The Wall Street Journal has reported that cities like Milan have become magnets for affluent expatriates drawn to Italy’s cultural heritage, modern amenities, and access to the broader EU market. Even with a higher annual levy, Italy’s mix of Mediterranean living, stable tax treatment, and prestigious residency status continues to offer something few other countries can match—a sophisticated European lifestyle paired with financial simplicity.
Publisher’s Note:
For international investors and entrepreneurs, Italy’s evolving flat-tax regime is a reminder of how governments are competing for global talent and capital. The balance between lifestyle and taxation continues to shape where high-net-worth individuals choose to base themselves – and Italy’s combination of history, culture, and flexibility keeps it firmly on the radar.
