Relocation intelligence

🇮🇹 Moving to Italy: tax, residency and cost of living

Progressive tax + Impatriati expat regime

Thinking of moving to Italy? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
43%
Corporate tax
24%
Capital gains
26%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
67.2
Safety
7/10
Internet quality
6/10
Visa-free destinations
190
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Italy has four progressive brackets up to 43% plus regional and municipal surcharges of up to around 2.5%. The Impatriati regime was reformed effective 1 January 2024 by Decreto Legislativo 209/2023: 50% exemption on employment and self-employment income for five years, capped at EUR 600,000 annual income. Increased to 60% with a minor child or relocation with a child. The previous 70% rate applies only to those registered before 1-1-2024.

Residency and visas

EU citizens may settle freely. Non-EU nationals can use standard residence permits, the Elective Residency visa or the Investor visa. Naturalisation is possible after ten years.

Property ownership

Foreigners may purchase real estate without restrictions subject to reciprocity with their home country. Notarial transfer is mandatory. No general wealth tax beyond IMU property tax.

Cost of living and quality of life

Italy offers high quality of life with excellent cuisine, culture and climate. The public healthcare system (SSN) ranks among the world's best. Internet quality varies significantly between cities and rural areas.

Passport and mobility

The Italian passport provides visa-free or visa-on-arrival access to 190 countries (Henley 2024). Italy ranks in the global top 5 for passport strength.

Residency and visas

  • EU Freedom of Movement (EU/EEA citizens) · Residency in 5 years
  • Visto per Residenza Elettiva (Elective Residency Visa) · €31,000/j · Residency in 5 years
  • Visto per Investitori (Investor Visa) · €250,000 · Residency in 5 years
  • Visto per Lavoro Autonomo (Self-Employment Visa) · €8,500/j · Residency in 5 years
  • Digital Nomad Visa (D.L. 48/2023) · €28,000/j · Residency in 5 years

Why people move to Italy

  • Impatriati tax regime

    New residents enjoy a 50% (70% in southern regions) exemption on employment and self-employment income for five years, provided they have not lived in Italy for at least two years.

  • Flat-tax regime for high-net-worth individuals

    Italy offers a flat annual tax of EUR 100,000 on all foreign-sourced income for new tax residents (art. 24-bis TUIR), comparable to the British non-dom system.

  • Exceptional quality of life and heritage

    Italy combines a world-class public health system (WHO top 2), rich culture, Mediterranean climate and relatively low costs outside major cities.

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Sources

Other destinations

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