High-net-worth individuals eyeing a relocation to Italy will soon face a steeper price tag. A technical note published on 5 February by consultancy Interconsulting confirms that the 2026 Budget Law raises the annual substitute tax under the "Regime dei Nuovi Residenti" from €200,000 to €300,000 for the principal applicant and from €25,000 to €50,000 per dependent. The increase applies to anyone who registers as an Italian tax resident on or after 1 January 2026.
Italy introduced the lump-sum tax in 2017 at €100,000 to lure foreign billionaires and footloose entrepreneurs. A 2024 decree doubled the amount, but take-up remained strong, with advisory firm Fidal reporting 1,150 active beneficiaries last year. Government sources say the latest hike aims to maintain competitiveness while "aligning contributions with increased public-service demands." Crucially, existing participants remain grandfathered at their original rates, a continuity clause that preserves Italy’s credibility with mobile wealth holders.
Private-banking advisers believe the €300,000 levy still compares favourably with Switzerland’s expenditure-based deals and the UK’s remittance basis, especially after Britain’s decision to abolish non-dom status from April 2026. However, they expect a short-term surge in applications during the remainder of 2025 as clients rush to lock in the €200,000 rate.
![Italy hikes flat-tax regime for new residents to €300,000, reshaping high-end mobility calculus]()
For those preparing a move, VisaHQ can take much of the bureaucracy off the table. The global platform helps clients secure Italian entry visas, residence permits, and even the indispensable codice fiscale, coordinating paperwork with consulates and local offices. Full details and an online application portal are available on their Italy page: https://www.visahq.com/italy/
Corporate mobility specialists note indirect effects: the flat-tax regime often underpins C-suite transfers and remote-work arrangements by neutralising Italy’s top marginal rate of 43%. Companies planning to relocate executives in 2026 or later should revisit cost-projections and consider alternative incentives such as the "impatriate" 50 per cent income exemption.
Immigration lawyers also flag possible processing bottlenecks at understaffed “Sportello Unico” offices if a late-2025 application spike translates into an end-of-year scramble for codice fiscale numbers and residence permits.
Italy introduced the lump-sum tax in 2017 at €100,000 to lure foreign billionaires and footloose entrepreneurs. A 2024 decree doubled the amount, but take-up remained strong, with advisory firm Fidal reporting 1,150 active beneficiaries last year. Government sources say the latest hike aims to maintain competitiveness while "aligning contributions with increased public-service demands." Crucially, existing participants remain grandfathered at their original rates, a continuity clause that preserves Italy’s credibility with mobile wealth holders.
Private-banking advisers believe the €300,000 levy still compares favourably with Switzerland’s expenditure-based deals and the UK’s remittance basis, especially after Britain’s decision to abolish non-dom status from April 2026. However, they expect a short-term surge in applications during the remainder of 2025 as clients rush to lock in the €200,000 rate.
For those preparing a move, VisaHQ can take much of the bureaucracy off the table. The global platform helps clients secure Italian entry visas, residence permits, and even the indispensable codice fiscale, coordinating paperwork with consulates and local offices. Full details and an online application portal are available on their Italy page: https://www.visahq.com/italy/
Corporate mobility specialists note indirect effects: the flat-tax regime often underpins C-suite transfers and remote-work arrangements by neutralising Italy’s top marginal rate of 43%. Companies planning to relocate executives in 2026 or later should revisit cost-projections and consider alternative incentives such as the "impatriate" 50 per cent income exemption.
Immigration lawyers also flag possible processing bottlenecks at understaffed “Sportello Unico” offices if a late-2025 application spike translates into an end-of-year scramble for codice fiscale numbers and residence permits.
