Italy’s Flat Tax for High-Net-Worth Individuals
- Gregorio Arcaleni
- May 15
- 2 min read
Updated: May 16
Italy has introduced in 2017 a flat tax scheme aimed at attracting high-net-worth individuals (HNWIs) to establish residency in the country. This tax regime simplifies global taxation for wealthy foreigners, offering a fixed annual levy on worldwide income. Here below, a brief in bullet points of the key features of this very interesting tax scheme.
Who qualifies? - Individuals who have not been tax residents in Italy for at least 9 of the last 10 years. - Must declare their choice to opt into the scheme in their first or second tax return after moving residency.
Tax Benefits
- Fixed €200,000 annual tax covering all foreign income, regardless of the actual amount. - Option to extend the regime to family members, with an additional €25,000 per person per year. - No obligation to report foreign assets under Italy’s standard tax framework. - Valid for up to 15 years, unless revoked or terminated due to missed payments or relocating to another country.
Application & Procedure
1. Before opting in, taxpayers can submit a formal request ("interpello") to the Italian tax authorities to confirm eligibility.
2. The request must include details like personal information, previous tax residency, and any foreign jurisdictions excluded from the tax scheme.
3. Payments are made through the F24 form using a specific tax code ("NRPP"), in a single annual installment.
Revocation & Expiry
- Taxpayers or their dependents can withdraw from the regime by notifying the tax authorities via their annual tax return or through a separate declaration.
- If withdrawn after payment, the tax amount may be refunded or credited using another F24 form ("NRRE").
- The regime automatically ends after 15 years, or earlier if residency is moved abroad or tax payments are not completed.
This tax framework is designed to attract high-net-worth individuals and investors to Italy by offering simplified taxation on global income.
If you would you like further details on the practical benefits or eligibility process, or have anyny questions, feel free to contact us! - mail@arcalenis.com .
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