Relocating to Italy: the €300,000 flat tax, residence and the family move

Published 3 November 2026 · ATLAS MAISON editorial team

Flat tax

€300,000 a year on foreign income for those becoming resident from 2026

Family members

€50,000 a year each

Eligibility

Not tax resident in Italy for at least nine of the previous ten years

Duration

Up to 15 years

Non-EU residence

Routes include the elective residence visa for those with substantial passive income

Italy has become one of Europe’s most sought-after destinations for international families: Milan’s energy, the lakes, Rome, Tuscany and the coasts, and a regime that taxes foreign income with a single annual payment. Here is how a move is usually planned.

The flat tax

New residents can elect to pay a fixed annual substitute tax on all their foreign-source income. For those becoming resident from 1 January 2026, the amount is €300,000 a year, with €50,000 for each qualifying family member; those who moved earlier keep the previous rates. The regime lasts up to fifteen years and requires that the person was not tax resident in Italy for at least nine of the previous ten. Italian-source income is taxed normally, and the regime also covers foreign assets for certain wealth, reporting and inheritance purposes. Every case should be reviewed with Italian tax advisers, and a ruling can be requested in advance.

Residence routes

EU citizens register their residence. Non-EU families need a national visa and residence permit: the elective residence visa suits those with substantial, stable passive income who will not work in Italy; other routes cover investors, employees and family members. Licensed immigration lawyers confirm the right route for each person.

Where to live

Milan for business and schools, with Lake Como less than an hour away; Rome for culture and diplomacy; Florence and Tuscany for a slower life; Portofino, the Amalfi Coast and Sardinia’s Costa Smeralda for summers. Many families combine Milan with a house on the lakes or the sea.

Schools

Milan and Rome have strong international, British and American schools; places are limited and applications should start a year ahead.

The home

Renting first is common. Purchases go through a notary, and taxes depend on whether the property is a main residence and on the seller. Restoration of historic properties needs patience and the right architects; we coordinate them.

Planning the move

The order matters: tax review and ruling, residence, home, schools, banking and the move itself, then registration, healthcare and cars. One point of contact keeps advisers, agents, schools and movers aligned. See our relocation concierge and company formation in Italy.