In 2017, Italy introduced its flat tax system for wealthy foreigners relocating to Italy and making it their tax residence. Under this system, foreign income is subject to a flat tax which was initially set to €100.000 per year. An additional contribution of €25.000 could also shield the income of the spouse and the same for children over 18. The flat tax scheme is valid for 15 years after approval.
Note that Italian labour revenues are not included: they are subject to the usual progressive tax system also valid for Italians.
In August 2024 the flat tax was doubled to €200.000 per year for new applicants. The number of applications did not drop after this measure was implented.
Doubling the flat tax amount seems to make no difference for the 0.1% very wealthy. The mere fact that Britain clamped down on foreign income in april 2025 accelerated the exodus of about 16.000 billionairs from the UK during the following months. This would have trimmed the gross taxable income in the UK by £92 Billion.
A further increase of the flat tax level to €300.000 annually is now considered. It will probably be introduced for new applications during 2026. The increase is a hidden incentive for any possilbe candidates to apply as soon as possible under the former €200.000 level rule.
For 99.5% of European citizens, €200.000 exceeds their annual pre-tax revenues. Those flat tax schemes are not designed for the middle class, not even for the rather well off among them.
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