Moving to Italy

Italy's flat tax for new residents, and buying a home

Updated October 2026 · 6 min read

Italy's flat tax for new residents (article 24-bis TUIR) lets you replace Italian income tax on all your foreign income with one fixed annual payment. For people who move their tax residence to Italy from 1 January 2026, that payment is €300,000 a year, plus €50,000 for each family member included. It lasts up to 15 years. It does not cover a home you buy in Italy: Italian property is Italian-source, so IMU and any rental income are taxed under the normal rules.

How much it costs today

The amount has been raised twice. It started at €100,000 in 2017. Decree-Law 113/2024 (the "Omnibus Decree", converted by Law 143/2024) doubled it to €200,000 for people moving their residence after 10 August 2024.

The 2026 Budget Law (Law 199 of 30 December 2025) then raised it to €300,000. It applies to people who transfer their tax residence to Italy from 1 January 2026. The amount for each family member went from €25,000 to €50,000.

People already in the regime keep the amount that applied when they moved. Those who moved before 11 August 2024 still pay €100,000. Those who moved between then and the end of 2025 pay €200,000.

Key fact	Rule for residence moved from 1 January 2026
Annual substitute tax	€300,000
Each family member opting in	€50,000 a year
Maximum duration	15 tax years
Eligibility	Not tax-resident in Italy for at least 9 of the previous 10 years
How to opt in	In the Italian tax return for the first year of residence, or the following year
Advance ruling (interpello)	Optional
Italian-source income	Taxed under ordinary rules
IVIE and IVAFE on foreign assets	Exempt
Inheritance and gift tax	Due only on assets located in Italy

Who can use it

You must become tax-resident in Italy. You must not have been tax-resident in Italy for at least nine of the ten tax years before the option. Italians who lived abroad long enough can use it too.

Family members can join for their own fixed amount. They must meet the same conditions as the main taxpayer. "Family member" follows the definition in article 433 of the Italian Civil Code.

How you opt in

You make the election in your Italian tax return. You can do it for the first year of Italian residence or the year after. You can also file a ruling request (interpello) with the Italian Revenue Agency to confirm you qualify. The ruling is optional.

The regime ends if you move your residence abroad or miss a payment. You can also revoke it in a later return.

What it covers, and what it does not

The flat tax covers income produced abroad. You may also leave out income from specific countries. That income is then taxed normally, with a credit for foreign tax paid.

Some items stay outside the regime. Capital gains on "qualified" shareholdings sold in the first five years are taxed under ordinary rules. All Italian-source income, including from Italian property, is taxed normally too.

The regime brings three further benefits. You do not pay IVIE (the tax on foreign real estate) or IVAFE (the tax on foreign financial assets). You are also exempt from reporting foreign assets in the RW form. Inheritance and gift tax apply only to assets located in Italy.

What it means when you buy a home

A home in Rome or Milan is an Italian asset. The flat tax does not shelter it. Plan for these points:

IMU (municipal property tax). A main residence is exempt, except homes in cadastral categories A/1, A/8 and A/9. A second home pays IMU.
Rental income. If you let the property, the rent is Italian-source income and is taxed under ordinary rules.
Inheritance and gift tax. Your Italian home stays within the scope of these taxes, even under the flat tax.
Purchase taxes. Registration tax, or VAT on some new builds, applies as for any buyer.

"Prima casa" benefits for new residents

Once you are resident, you may claim the "prima casa" (first home) benefits. Registration tax drops from 9% to 2%. On a new build from a developer, VAT drops from 10% to 4%.

The home must be in the municipality where you live, or where you will move your residence within 18 months of the purchase. You must state this commitment in the deed. If you miss the deadline, you lose the benefit.

Three conditions often matter for buyers over €1 million:

Homes in categories A/1 (upscale homes), A/8 (villas) and A/9 (castles and historic palaces) are excluded.
The category depends on the land-registry record, not the price. An expensive flat classified A/2 may still qualify.
You must not already own another home that rules you out. Your notary checks the full list of conditions.

Italian citizens registered abroad (AIRE) have specific rules. They may qualify in their birth town or where they lived or worked for five years before leaving.

Becoming resident in Rome or Milan

Tax residence depends on where you actually live and on registration with the municipal registry (anagrafe). Registration is a strong presumption, but it is not the whole test. Your tax adviser should map out which year counts as your first year of residence.

The two timelines need to fit together. The flat tax runs by tax year. The prima casa window runs 18 months from the deed. Buying before you move is possible, as long as you register your residence in that municipality in time.

Why many new residents rent first, then buy

Many new residents rent for the first months. They register their residence at the rented address and start the flat tax year. Then they buy once they know the city.

Renting first has practical benefits:

You learn neighbourhoods, schools and commutes before committing.
You avoid buying under time pressure from the residence deadline.
If you buy in the same municipality, the prima casa residence condition can already be met.

The "impatriati" regime is a different scheme

Italy also has a regime for people who move to Italy to work, known as "impatriati". Under the rules in force since 2024, 50% of employment or self-employment income is exempt. It rises to 60% with a minor child. Income above €600,000 gets no relief.

It lasts five years and needs at least three years of prior residence abroad. You must have high qualifications or experience and stay resident for at least four years. It suits working professionals, while the flat tax suits people with large foreign income. Your tax adviser can tell you which fits.

Get tax advice before you sign

Giusto does not give tax advice. Rules have changed three times since 2017 and depend on your personal situation. Speak to an Italian tax adviser before moving your residence and before signing a purchase.

How Giusto helps

Your dedicated Buyer's Agent, part of a network of licensed real estate agents, works only for you. The real estate agency earns a percentage of the price, so it has no interest in negotiating it down for you. Our AI reads what is new on the main property portals daily and sends only matching homes, with the listing link. The search and the proposals are always free, and planning and land-registry checks are included. If a home catches your eye and you decide to go ahead, our fee is 20% of what we save you on the asking price: no saving, no fee, no upfront fee and no exclusivity.

Start your search on giustohomes.com

Sources

As of October 2026. This is general information, not tax advice.