Italian Taxes for New Residents in 2026: IRPEF up to 43%, the €300,000 Flat Tax and the Impatriate Regime

The Italian tax question must be solved before the move, not after. Once you are a tax resident, Italy taxes your worldwide income, and some choices are only available in your first tax returns. Sources: the Agenzia delle Entrate page on the flat tax, its page on incentives for new residents, and the BRIDGES articles on the flat tax and Italian taxes. Checked on 2 November 2026.

When you become a tax resident

According to BRIDGES, you are an Italian tax resident if, for most of the tax year, you are registered in the population register, have your centre of vital interests in Italy or are present in Italy. A residence permit alone does not decide it, but most people who really move meet one of these tests.

Ordinary income tax

Income per year	IRPEF rate
up to €28,000	23%
€28,000 to €50,000	33%
above €50,000	43%

Regional and municipal surcharges are added on top. Residents also pay IVIE on property abroad, about 1.06% of its tax value, and IVAFE on foreign financial assets, about 0.2%, according to BRIDGES.

The flat tax for new residents

Article 24-bis of the income tax code lets new residents pay a fixed substitute tax on all foreign income instead of ordinary tax. According to the Agenzia delle Entrate:

• €300,000 a year for those who move from 1 January 2026, plus €50,000 for each family member included;
• you must not have been an Italian tax resident for at least nine of the ten years before the option;
• you choose it in the tax return for the year of the move or the following year;
• it lasts up to 15 years and is paid with form F24, code NRPP;
• before choosing, you can ask the Agenzia for a ruling (interpello).

The amount has changed twice. It was €100,000 until 10 August 2024, then €200,000, and now €300,000 for moves from 2026. BRIDGES dates the €300,000 level to 2024, but I follow the official page.

The impatriate regime for workers

For people who come to work, the regime in force since 2024 taxes only 50% of employment and self-employed income up to €600,000 a year, for the year of the move and the following four years. Conditions:

1. you were not an Italian tax resident in the previous three tax years;
2. you commit to staying a tax resident for at least four years;
3. you work mainly in Italy;
4. you have high qualifications or specialisation.

There is extra relief for workers with minor children. If you leave before four years, the benefit is recovered with interest.

My view

The flat tax suits families with large foreign income, usually above €1 million a year. The impatriate regime suits professionals and entrepreneurs who will really work in Italy. For a pensioner on elective residence the ordinary rules usually apply, so I ask them to check the tax treaty with their home country first.