Yes, we all love the Italian lifestyle, but could you combine your love of la dolce vita with some tax perks?
Never mind all the food, wine and glorious architecture – perhaps you could also hang on to more of your income by moving to Italy.
Whether you are wealthy, talented or retired (or all three), here are the three main preferential tax schemes on offer in 2025.
Italy’s €200,000 flat-tax regime
Unless you have deep pockets, look away now (or skip to the next section).
By paying a lump sum of €200,000 annually on overseas-sourced income, foreigners can save thousands in tax – although not as much as when the scheme began and when it was €100,000.
This regime remains popular with high earners and is available for 15 years if you move to Italy. Family members pay an additional €25,000 per year.
Note that this regime does not exempt owners from Italian property taxes or income tax on rental income from an Italian property.
Anyone on the flat-tax regime who is not a European citizen needs a visa, and this will be costly: it’s usually Italy’s Investor Visa (or golden visa), which requires investing €250,000 in a start-up, €500,000 in a company, a €1m philanthropic donation or €2m in government bonds.
Between 1,500 and 4,000 people have taken up this regime.
Southern Italian 7% flat tax regime
Do you have income sources outside Italy and like the sound of a small town or village in the south?
If you move to the less densely populated regions of central and southern Italy, retirees or pensioners can benefit from a 7% flat tax for relocation for up to nine years.
To take advantage of this tax rate, you’ll need to obtain residency in one of Italy’s ‘Mezzogiorno’ regions, or in qualifying villages in Lazio, Marche or Umbria – or the popular Abruzzo, Calabria and Puglia, as well as the islands of Sicily and Sardinia.
Bear in mind – and this is often the sticking point – that your chosen location must also have fewer than 20,000 residents. But there are some lovely spots like Taormina in Sicily – only 10,000 residents – that qualify, although you’ll need to consider how practical they are for full-time living.
You’ll also need to apply for the legal right to residency if you don’t hold an EU passport. The Elective Residency Visa is the obvious route.
You’ll need to prove an annual passive income of at least €31,000 per person or €38,000 for married couples. The average income of a pensioner on this regime is €60,000, according to the Ministry of Economy and Finance. Around 1,000 people have taken up the scheme.
‘Return of the brains’ impatriate scheme
This one’s been around since 2011, although you’re least likely to have read about it. The “Rientro dei Cervelli”, literally the “return of the brains” scheme, was designed to attract highly skilled workers to the country by offering low tax rates.
Up until December 2023, you could pay income tax on just 10% of earnings - it’s now increased to 50% - but that’s still very tempting for many.
By 2023, around 50,000 people were on the regime - a mix of returning Italians and new non-Italian residents, mainly employees of companies with an Italian office.
The 50% tax exemption lasts up to five years and is only available to those earning up to €600,000 (if you earn more, the €200,000 flat-tax regime is likely a better fit).
If you move with an under-18 child, the discount increases to 60%.
Applicants must not have been resident in Italy for three years (or six to seven years if transferring within the same company) and must stay for four years - or pay some of the tax benefit back.
You must also have a higher education qualification (or an EU Blue Card) to qualify.
It is not popular with self-employed people due to the red tape, nor with digital nomads - you must live and work in Italy for at least 183 days per year to qualify.
Thinking of making Italy your home?
Whether you're dreaming of retiring to the south, relocating for work, or simply want to enjoy la dolce vita with some tax perks, make sure you're fully informed. Explore properties for sale in Italy or read our comprehensive Italy Buying Guide to get started.
