Flat tax

As from 1st January 2017 non-Italian resident individuals that transfer their tax residency in Italy can benefit from a flat-tax regime on their non-Italian source income. Flat tax regime is a substitutive tax of € 100.000 for each year of validity of the option (in lieu of ordinary Italian income taxation).

In order to apply for the flat tax option, the non-Italian resident individuals must not have been resident in Italy for at least nine of the ten years preceding their transfer to Italy. The option can be formalized after receiving a positive answer to an advanced tax Ruling addressed to the Italian Tax Authorities or exercising the option for substitutive tax in their tax return.

The option can be extended to one or more eligible family members and the substitutive tax is reduced to € 25.000 per family member for each year of validity of the option.

For newly Italian resident individuals Italian source income shall be taxed according to ordinary Italian income tax rules.