Italian Tax Regimes
for New Residents — 2026
Italy offers three distinct tax regimes that can dramatically reduce your tax burden when you relocate. Each targets a different profile. The right choice depends on where your income comes from — and each has a direct impact on your mortgage timing.
Quick comparison
Which regime applies to you?
| Regime | Who it targets | Income covered | Benefit | Duration |
|---|---|---|---|---|
| Impatriati | Workers relocating to Italy (employees, self-employed, entrepreneurs) | Italian-source employment / self-employment income | 50% IRPEF exemption (60% with minor children) | 5 years |
| €300k Flat Tax | High-net-worth individuals with significant foreign income | All foreign-source income (dividends, capital gains, foreign salary…) | €300,000/year lump sum replaces IRPEF on all foreign income | Up to 15 years |
| Pensioners 7% | Foreign retirees moving to qualifying Southern Italian municipalities | All foreign-source income (pensions, dividends, capital gains…) | 7% flat rate on all foreign income | 9 years |
You cannot use two regimes simultaneously. The right choice depends on your income composition and source. A qualified commercialista should confirm your eligibility before you commit.
The three regimes
Detailed guides
Impatriati Regime
50% income tax exemption for workers relocating to Italy. The most common regime for executives, professionals, and entrepreneurs returning to or moving to Italy. Critical timing interaction with the mortgage process.
Full guide →€300k Flat Tax
€300,000/year lump sum on all foreign income — regardless of amount. For HNWI with significant foreign portfolios. Creates a specific mortgage challenge: most standard Italian banks cannot process this profile.
Full guide →Pensioners 7% Flat Tax
7% on all foreign income for 9 years — for foreign pensioners relocating to qualifying Southern Italian municipalities (under 20,000 inhabitants). Simple, powerful, location-specific.
Full guide →Why regime timing matters for your mortgage
Every regime requires you to establish Italian fiscal residency by December 31 of the year you want it to apply. If you are buying — not renting — a mortgage takes 60–90 days. This means the process must start before October.
Missing this window means losing the benefit for the entire first year — potentially €12,000–€17,000 for Impatriati, or the full lump sum saving for Flat Tax clients. I coordinate the mortgage timeline with your fiscal residency deadline.
Relocating to Italy this year?
Let's align the timing.
Free 30-minute call — I'll assess which regime applies to you and structure the mortgage process around your fiscal year deadline.