In recent years, Italy has become an increasingly attractive destination for high-net-worth individuals (HNWIs), entrepreneurs, and international families seeking lifestyle, stability — and fiscal efficiency. Central to this appeal is Italy’s flat tax regime for new residents, introduced in 2017 under Article 24-bis of the Italian Income Tax Code.

This tax regime offers an unprecedented opportunity: foreign-source income is taxed at a flat annual amount rather than according to progressive rates. But beyond tax, the regime has helped reposition Italy on the global map of wealth migration — and the data confirms it.

What Is the Italian Flat Tax Regime?

The flat tax regime allows qualifying individuals who become Italian tax residents — and who have not been tax resident in Italy for at least 9 of the previous 10 years — to pay a fixed annual tax of €200,000 on all their foreign-source income, regardless of the amount earned.

Key benefits include:

  • No reporting of foreign financial assets under the Italian tax monitoring regime (RW Form)
  • Exemption from foreign inheritance and gift tax
  • Optional extension to family members at €25,000 per person
  • Full access to Italy’s tax treaty network
  • Valid for up to 15 years

It’s important to note that Italian-source income remains subject to ordinary taxation.

As of August 2024, the flat tax has been increased from €100,000 to €200,000 per year for new applicants, following a reform aimed at narrowing access to the regime and increasing public revenue.

Growth of the Regime: Official Numbers

Recent reports by the Corte dei Conti (Italy’s Court of Auditors) provide detailed insight into the number of people using the regime:

  • 2022: 1,136 individuals
  • 2023: 1,495 individuals

This marks a sharp increase of 359 new entrants in just one year, a +31.6% year-over-year growth — the largest jump since the regime was introduced.

The data clearly shows that the flat tax is no longer a niche instrument — it’s a major driver of high-net-worth relocation to Italy.

Why Is This Regime Becoming More Popular?

Several global events are reinforcing Italy’s appeal in 2024:

  • The abolition of the UK non-dom regime announced by the UK government is pushing many former non-doms to explore alternative jurisdictions, with Italy emerging as a top contender.
  • The stability and lifestyle benefits offered by Italy — Mediterranean living, Schengen access, cultural richness — remain unmatched.
  • The upcoming implementation of the €200,000 flat tax has encouraged many individuals to apply before the change takes full effect.

Although official statistics for 2024 are not yet available, a significant increase in applications is widely expected, particularly from the UK, US, Brazil and the Middle East.

Who Is Using It?

From international investors and CEOs to athletes, crypto entrepreneurs, and retired executives, the regime is attracting a wide array of profiles — all with one thing in common: complex international wealth.

Popular destinations include Milan, Florence, Rome, Lake Como, and increasingly also smaller towns offering exclusive villas and privacy.

Is It Still Worth It at €200,000?

Yes — but the higher threshold makes it a regime clearly targeted at the ultra-wealthy. With proper planning, the €200,000 flat tax still represents an efficient cap on international tax liability, especially for those with significant foreign-source passive income, capital gains, dividends, or trust distributions.

At Move to Dolce Vita, we help international clients structure their wealth, assess eligibility, and prepare pre-ruling applications with the Italian tax authorities when needed.

Considering Moving to Italy?

Our boutique firm specializes in helping international clients relocate to Italy under its most favorable regimes. We combine legal, tax, and immigration expertise to make your relocation seamless and fully compliant.

Want to design your Dolce Vita in Italy? Get in touch — the timing has never been better.

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