Investor Visa for Italy and Flat Tax: incentives for HNWIs

Italy is a particularly attractive destination for high-net-worth individuals (HNWIs) who wish to move their residence to Europe. In addition to the quality of life and the country’s stability, there are immigration and tax tools that make it possible to plan the move with significant advantages.

Among these, the Investor Visa and the so-called Flat Tax regime for new tax residents stand out. Combining the two allows international investors to obtain a residence permit and, if they meet the requirements, benefit from preferential tax treatment of their foreign income.

It is important, however, to distinguish immigration residence from tax residence: holding an Investor Visa does not automatically grant access to the Flat Tax.

Flat Tax for HNWIs: an advantageous tax regime for new residents

The Italian tax regime for high-net-worth individuals allows ordinary taxation of foreign-source income to be replaced with a fixed annual tax.

The amount is currently €300,000 per year, regardless of the amount of foreign income received. The regime can be applied for a maximum of fifteen consecutive years and allows certain family members to be included through an additional tax of €50,000 per year for each.

To access this opportunity, the taxpayer must not have been tax resident in Italy for at least nine of the ten previous tax years and must actually acquire Italian tax residence. Presence in Italy, habitual abode and the center of personal and family interests are relevant factors in the assessment.

For investors with international portfolios, shareholdings or significant foreign income, this system can offer considerable tax predictability.

Wealth and succession planning benefits

The flat tax offers advantages that go beyond income tax. Beneficiaries may in fact be exempt from IVIE, the tax on foreign real estate, and from IVAFE, which applies to certain financial assets held outside Italy.

The regime also simplifies tax reporting obligations for foreign assets, although specific exceptions remain, particularly for qualifying shareholdings in foreign companies.

The treatment of inheritances and gifts is also particularly relevant: assets located abroad are generally excluded from Italian taxation while the regime applies, allowing greater flexibility in family wealth planning.

It should be noted, however, that capital gains from the sale of qualifying foreign shareholdings in the first five years may be subject to ordinary taxation rather than being covered by the Flat Tax.

Italian income and ordinary taxation

The preferential regime applies exclusively to foreign income within its scope. Income produced in Italy, such as income from employment, real estate or business activities, remains subject to ordinary taxation.

Under the IRPEF (personal income tax) system for 2026, the progressive rates are 23% up to €28,000, 33% between €28,000 and €50,000 and 43% on amounts above that, in addition to any regional and municipal surcharges, although changes that would apply from 2027 are being discussed as part of the new budget law.

The distinction between Italian and foreign income is therefore a key element in assessing the overall benefit of relocating.

Investor Visa: obtaining residence through investment

The Investor Visa is a solution designed for foreign nationals who wish to be able to reside in Italy through a qualifying investment.

The program offers several options: investing €250,000 in an Italian innovative startup, investing €500,000 in the capital of an Italian company, making a philanthropic donation of €1 million, or purchasing €2 million in Italian government bonds.

The visa initially lasts two years and is renewable for a further three, provided the required conditions continue to be met.

One of the main advantages of the Investor Visa is its flexibility: continuous residence in Italy is not required to maintain the permit, a particularly attractive feature for entrepreneurs and investors with international activities, who are therefore not obliged to live permanently in Italy (although, if they wish to access the Flat Tax, they must meet the requirements for Italian tax residence, which include physical presence in Italy).

The residence permit obtained through this program can also form part of a permanent relocation plan, separate from any acquisition of Italian citizenship after 10 years of legal residence in Italy.

Italy: a strategic combination of residence and taxation

The combination of the Investor Visa and the Flat Tax for HNWIs makes Italy a competitive destination for high-net-worth individuals seeking to combine international mobility, wealth management and quality of life.

The possibility of obtaining a residence permit through qualifying investments, combined with a favorable tax regime on foreign income and wealth and succession benefits, offers interesting planning prospects. A preliminary assessment of the immigration, tax and wealth aspects makes it possible to identify the most appropriate strategy for each case.

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The content of this article is intended to provide general information on the topic. For doubts or specific cases, it is advisable to seek specialized legal advice tailored to your particular situation.

Article written by Alessia Ajelli, Managing Associate of LCA Studio Legale, Italian lawyer specialized on Italian immigration and citizenship law, and Paolo Grassi, Trainee of LCA Studio Legale.