High earners relocating to Italy can lock in a 100,000 euro annual tax bill for up to ten years—but the income threshold just doubled.
Italy has raised the income ceiling on its flat-tax scheme from €100,000 to €300,000 per year. Foreign residents who qualify can pay a fixed 100,000 euros annually in taxes, regardless of actual income, for a decade.
This matters if you're a freelancer, consultant, business owner, or remote worker earning above €100,000. The old cap made the scheme useless for anyone with serious income. Now it covers a much wider band of high earners—entrepreneurs, executives, and digital-economy professionals who might actually move for it.
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You can pay a fixed 100,000 euros annually in taxes for a decade, regardless of actual income.
The catch: you have to be a new resident of Italy. You can't have lived there in the prior five years. The flat rate applies to Italian-source income and foreign income that you bring into Italy. You still pay normal rates on income you leave abroad.
This is a real tax play for the right person. If you earn €200,000 and move to Italy, you pay €100,000 in tax instead of the standard progressive rate (which would be far higher). The ten-year lock means you know your tax bill for a decade. It's not a loophole—it's a deliberate incentive to attract wealth and talent. Whether it works depends on whether you actually want to live in Italy, not just on the math.
Source: original report ↗
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