Becoming a Tax Resident of Italy


Italy has long been viewed as an attractive place to live for its climate, cuisine, culture and history. Now it is possible to add taxation to that list, as the country introduces a more advantageous tax regime for foreign workers, pensioners and high-net-worth individuals.

Our lawyers across Italy help clients with becoming tax resident in Italy. Through an initial consultation, we are able to determine the best options given a client’s unique set of circumstances. This is determined by where they choose to settle, what the choose to do with their time, how they invest, and whether they bring a family with them.

Certain workers will be entitled to a reduced exposure to tax ranging from 70% to as much as 90% for those who settle in certain regions of southern Italy. Certain retirees can opt for a 7 percent annual flat tax on all overseas income with exclusions for properties outside Italy. High-net-worth individuals are also eligible for a flat-rate of €100,000 each year.

As with all tax, there is lots of nuance and so it is vital to engage with our attorneys to discuss your circumstances so they can advise of the best strategy for you.

Workers
Retirees
High-Net-Worth Individuals
Income Tax
70% reduction for 5 years with potential 50% reduction for further 5 years
7% annual flat tax on overseas income
€100,000 annual flat tax with certain exclusions
Regional Benefits
Increased exemption for relocation to southern regions
Must retire to municipality in southern regions not exceeding 20,000 inhabitants
N/A
Duration
5 to 10 years
Up to 6 years
Up to 15 years
Requirements
Applicant must commit to live in Italy for 2 years & conduct majority of business there
Must have foreign-sourced pension income & come from country with administrative cooperation with Italy
Must not have been tax resident in Italy for at least 9 of the previous 10 tax years

About the Authors

Mark I Davies, Esq.

Chairman of Davies & Associates; focused on E visa strategy and complex consular filings.

Mark I Davies, Esq. JD, University of Pennsylvania Law School, Licensed with the SRA (SRA ID: 384468) in the UK, Member Law Society of England & Wales, MBA, Wharton School of Business. Top 10 Investment Visa Lawyer, Licensed (USA), Georgia State Bar. AILA Member.

Area Details
Education JD, University of Pennsylvania Carey Law School | MBA (Finance), The Wharton School, University of Pennsylvania | Chartered Accountant (ICAEW)
Financial Training Completed Analyst Training Program at a major international bank | Chartered Accountant background with professional training in financial analysis and reporting
Legal Practice Admitted to practice in Georgia (USA) | Registered Solicitor with the Law Society of England and Wales | Former CMBS lawyer at one of the world's largest international law firms
Immigration Track Record 15+ years advising HNW investors | Zero denials for clients advised on source-of-funds compliance in EB-5 | Hundreds of successful EB-5 cases globally
Recognition Named a Top 25 EB-5 Immigration Attorney by EB5 Investors Magazine (2018–2023)
Professional Engagements Lecturer/trainer for other lawyers at AILA, ACA, University of Pennsylvania Law School | Frequent speaker at global investment immigration conferences
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