Q&A: Italian tax regime

The Italian €100 000 flat tax regime was introduced in 2017 with the aim of attracting investment from foreign high net worth individuals.

In response to the UK government’s decision to abolish the existing tax regime for non-domiciled (non-dom) residents effective April 2025 many individuals are exploring alternative tax-friendly jurisdictions. Italy has emerged as an attractive option offering a compelling tax regime for those willing to relocate and establish their tax residence within its borders.

The Italian regime has become increasingly beneficial for those with foreign source income and gains. The number of taxpayers opting for an Italian tax residence has risen consistently ever since the scheme was launched with over 2000 members recorded last year.

How does the Italian regime work?

Italy’s regime operates separately from the typical notion of income being taxed on a worldwide scale instead offering the option of excluding an...