Italian Flat Tax for HNWIs: what’s new for 2026

The topic of the flat tax for new residents in Italy is once again at the center of the tax debate, especially following the changes introduced by the 2026 Budget Law. This regime, designed to attract wealthy professionals, high-net-worth individuals, and foreign investors, continues to be a strategic tool for tax planning. In this article, we explore the main updates for 2026 and the implications for those considering a move to Italy.

What is the flat tax for new residents?

The flat tax is an optional tax regime that allows individuals who decide to transfer their tax residence to Italy to pay a fixed substitute tax on their foreign-source income, regardless of the amount of that income. In practice, instead of applying the progressive Italian tax rates, which can reach up to 43%, the taxpayer pays a fixed annual amount, greatly simplifying the tax management of foreign income.

Introduced for the first time in 2017, this measure has been progressively updated to keep Italy competitive with other countries offering similar tax incentives.

The current regime (up to 2025)

Under the current rules, those who opt for the flat tax pay €200,000 per year on the foreign income of the main taxpayer. For each family member included in the regime, an additional annual contribution of €25,000 is required.

To qualify, it is necessary to transfer one’s tax residence to Italy and not to have been resident in the country for at least 9 of the previous 10 years. Once the flat tax option is exercised in the Italian tax return, the regime can last up to 15 years, offering long-term stability.

What’s new in 2026: flat tax increased to €300,000

Starting from 1 January 2026, the Budget Law provides for a significant increase: the fixed amount for the main taxpayer will rise from €200,000 to €300,000 per year, while the contribution for each participating family member will increase from €25,000 to €50,000 per year.

This change aims to balance the sustainability of public finances with the need to keep Italy attractive to individuals with high levels of foreign income.

Transitional clause: advantages for those who moved by 31 December 2025

For those who planned and completed their relocation by the end of 2025, a transitional clause has been introduced. It will be possible to continue benefiting from the 2025 flat tax conditions (€200,000 for the main taxpayer and €25,000 for each family member) even after the new rules come into force on 1 January 2026.

Who can opt in

All taxpayers who meet the following requirements can opt for the flat tax:

• transfer of tax residence to Italy
• not having been resident in Italy for at least 9 of the previous 10 years

There are no nationality restrictions: both EU and non-EU citizens can benefit from the regime if they meet the above criteria. The option must be indicated in the Italian tax return for the year of transfer.

A strategic regime for HNWIs

The flat tax for new residents remains a key measure in the Italian tax landscape. With the increase to €300,000 per year from 2026, Italy confirms its intention to maintain an internationally competitive regime while strengthening the sustainability of the tax system.

For those considering a long-term relocation to Italy, understanding the rules and timing of the flat tax is essential to plan effectively and maximize the available benefits.

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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