Europe
Italy: tax at a glance
This is a residence-based system that taxes worldwide income, with regional and municipal surcharges added on. For wealthy new residents, though, a flat tax on foreign income offers an offset, raised to EUR 300k for those relocating from 2026.
Ways to relocate to Italy
The residency and citizenship routes that lead here, weighed against the tax picture above.
Italy Flat Tax
Tax regime
Jure Sanguinis
Citizenship by descent
Italy Investor Visa
Residency by investment
Italy 7% Pensioner Regime
Retirement
Impatriate Regime
Tax regime
ERV
Passive income
The taxes
- Personal income (top)
- 43%A progressive IRPEF scale (23% / 33% / 43%), with the top rate starting from EUR 50k. On top of that comes a regional surcharge of 0.7–3.33% and a municipal surcharge of up to 0.9%.
- Corporate income
- 24%
- Capital gains
- 26%, covering financial assets and both qualified and non-qualified shareholdings.
- VAT / IVA
- 22%
- Dividends (WHT)
- 26%
- Interest (WHT)
- 26%
- Royalties (WHT)
- 22.5%, which works out to 30% applied to 75% of the gross amount.
- Social security (employee)
- ~10%
- Social security (employer)
- ~30%
- Wealth tax
- None domestically. Foreign real estate faces the IVIE at 1.06%, and foreign financial assets fall under the IVAFE.
- Inheritance / estate
- 4–8%. Spouses and children pay 4% above the EUR 1m allowance, and exemptions are generous.
- Property tax
- IMU, a municipal tax, runs about 0.86% of cadastral value. The main home is exempt.
- Other
- IRAP, the corporate regional tax, runs about 3.9%, on top of regional and municipal IRPEF surcharges.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Under Article 24-bis, new residents pay a flat tax of EUR 300,000 a year starting 1 January 2026, plus EUR 50,000 for each family member. Article 24-ter offers foreign pensioners in the South a rate of 7%. The impatriate regime gives a 50% exemption, capped at EUR 600,000 of income.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references