Foreign retirees in Italy: how the 7% flat tax regime works and who qualifies

The 7% flat tax regime is a preferential tax scheme available to foreign retirees who transfer their tax residence to Italy. It allows the application of a 7% substitute tax on all foreign-source income (not only pensions), for up to 9 tax years (plus the year of transfer). The regime is available to individuals who: - receive a pension paid by a foreign entity - have not been tax resident in Italy for at least 5 years prior to the transfer - transfer their tax residence to a municipality with fewer than 20,000 inhabitants located in Southern Italy (Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, Puglia) or in certain municipalities in Central Italy affected by earthquakes The option is exercised through the income tax return for the year in which the residence is transferred and allows, upon request, the exclusion of specific foreign countries from the scope of the substitute tax.

Residence in Italy for registry purposes but tax residence abroad: is it possible and what are the implications?

This is a delicate and potentially risky situation. Under Italian law (Art. 2 TUIR), individuals are considered tax resident if, for most of the year, they are registered in the Italian population registry or have domicile or residence in Italy. Being registered in Italy is therefore a strong legal indicator of tax residence. It can be challenged, but the burden of proof lies with the taxpayer, who must demonstrate that their center of vital interests and habitual abode are abroad, also considering applicable double tax treaties.

Health insurance card for foreigners with elective residence: how to obtain it and what it covers

Foreign nationals holding a residence permit for elective residence may enroll in the Italian National Health Service (SSN) on a voluntary basis, subject to the payment of an annual contribution. Enrollment allows them to obtain the health insurance card and access the same healthcare services provided to Italian citizens, including a general practitioner, specialist visits, and hospital care. The annual contribution is calculated based on total income, with a minimum amount of approximately €387.34. Alternatively, private health insurance coverage may be maintained.

Relocation and Life in Italy

Relocation to Italy

Between 2023 and early 2025, Italy has seen a significant influx of foreign citizens for study and work purposes. According to data from Istat, a total of 697,000 foreign immigration entries were recorded in the two-year period 2022–2023, with an increase compared to previous years, largely driven by work and study needs.

In this context of growing international mobility, relocating to Italy represents an important life decision that requires planning, knowledge of regulations, and, therefore, adequate professional support. The relocation service offered by Boschetti Studio Legale is designed to help foreign citizens and Italians living abroad move to Italy, ensuring compliance with the law and facilitating the execution of bureaucratic and administrative procedures.

Our team of experts provides comprehensive assistance to simplify the relocation process, handling all bureaucratic procedures, from visa and residence permit applications to managing administrative aspects, such as registering with the local municipality. Furthermore, thanks to partnerships with specialized companies, we can also take care of more logistical and practical aspects, such as international moving.

Relocating to Italy involves numerous challenges: understanding the Italian legal system, identifying the most suitable visa, finding appropriate housing, and navigating essential services in the new environment, for oneself and for one’s family.

Boschetti Studio Legale offers its team of consultants, administrative staff, and international lawyers to guide you step by step, providing personalized advice based on your specific needs, whether you are relocating for work, study, or to enjoy the quality of life in Italy with an elective residence visa.

What is the relocation service

The relocation service is a comprehensive assistance package designed to facilitate the transfer of individuals and families to Italy. This service focuses on legal advice and our strong expertise in immigration law, while also covering all the practical and administrative aspects involved in an international move.

If we consider that even a simple move from one city to another—or even from one neighborhood to another within the same city—can often be a source of stress, time loss, and energy drain, we can easily understand how an international relocation represents a major challenge. We are here precisely to remove that obstacle and make your move to Italy a worry-free experience.

Here is our destination service in 10 points:

Preliminary consultation: through a preliminary consultation, preceded by the completion of a strategic questionnaire, we assess the client’s specific needs, analyze their personal situation, and define a customized relocation plan.
Visa assistance: for non-EU foreign individuals, we identify the most suitable visa for the proposed situation and provide support in preparing the necessary documents and completing the visa application.
Pre-arrival orientation in Italy: we provide detailed information on the Italian cultural context, healthcare, education, and tax systems to adequately prepare for the move. We suggest schools considered most suitable for the children and, once the right one is found, we get in touch with the administration to collect initial information.
Home search: thanks to partnerships with several high-level real estate agencies, we offer clients housing solutions that meet their needs, both for permanent residences and temporary accommodations.
Real estate consultancy: we assist the client from the submission of a purchase or rental proposal to price negotiations and other conditions, guiding them throughout the entire real estate transaction, including cadastral and urban checks and the subsequent registration of the contract.
Relocating to Italy: through trusted international agencies, the relocation service aims to ensure a smooth move of the client’s belongings, including pets and their most valuable items, to the new home.
Residence permit for non-EU citizens: within 8 days of arrival, we accompany the non-EU client to submit the residence permit application according to current regulations.
Municipal registration: an important step is registration with the local resident population registry, obtaining the ID card and the tax code from the Revenue Agency. For EU citizens, the registration process is simpler, but it must still be followed carefully, as precise requirements are still in place.
Settlement services: we provide assistance in opening bank accounts, enrolling in the national health service, activating household utilities, enrolling children in the selected school, and other essential administrative tasks.
Specifically, foreign driving license conversion: we specialize in handling the conversion of foreign driving licenses, which can be initiated when specific agreements are in place.

Relocation management is especially beneficial for those unfamiliar with the Italian language or the country’s complex bureaucratic system. The professionals at Boschetti Studio Legale act as mobility managers, coordinating all aspects of the relocation and resolving any issues that may arise during the process.

The service is customizable based on the client’s specific needs, whether for an individual professional, a family, or groups of employees in the context of corporate relocation for multinational companies.

Why the relocation service to Italy is useful

Relocating to Italy involves numerous complexities that can be discouraging for those coming from abroad. The Italian administrative system is characterized by intricate procedures and bureaucracy that require a thorough understanding of current regulations.

Relying on experts in international law offers significant advantages:

Time saving and stress reduction: relocation professionals handle bureaucratic procedures on your behalf, allowing you to focus on the more enjoyable aspects of the move: 100% pleasure and 0% stress!
In-depth knowledge of regulations: for foreign citizens, immigration laws and residence permit requirements are very specific and change frequently. Our experts stay constantly updated to provide you with accurate and current information.
Linguistic and cultural support: communicating with public offices and property owners can be a significant challenge. The relocation service includes language assistance to overcome these barriers.

Relocation is especially valuable for foreign workers when entering the Italian real estate market. Our experts are familiar with various urban areas and can guide you in finding the home best suited to your needs, taking into account factors such as proximity to the workplace, school quality, and access to services. We develop a personalized strategy that perfectly matches the client’s needs, after the initial consultation and a thorough review of the intake questionnaire.

Furthermore, support in identifying temporary housing during the initial relocation phase allows for a smoother and less traumatic transition to permanent accommodation.

We are also open to businesses: Corporate Relocation allows companies to ensure a positive experience for their international employees, making it easier for them to integrate into their new work and social environment.

Typical scenarios / Case studies

The typical scenarios have been developed by drawing on the most significant corporate immigration cases that the firm regularly handles, with the aim of creating structured, complex examples that help the reader navigate their own situation. The case studies, by contrast, illustrate individual real-life matters, anonymised to protect client confidentiality, presented with full factual and contextual detail.

Relocation

US professional chooses Italy: elective residence obtained and future planned

American professional obtains an elective residence visa while maintaining ties with the USA. Integrated assistance from legal strategy to property search..

Application completed in approximately 3 months without additional requests

Read the full case

Business

US opera singer obtains work authorization in 7 days

American opera singer with contracts already signed with an Italian theatre. Self employment work authorization obtained on an urgent basis to meet professional commitments.

Work authorization issued within 7 days from submission of the application

Read the full case

Real Estate

US client purchases property in Rome: secure transaction

American client assisted in the purchase of a property in Rome. Urban planning issues and contractual risks identified and resolved before signing, transaction completed through notarial power of attorney.

Purchase completed within one month, entirely managed remotely

Read the full case

Business

American investor: from New York to a villa in Tuscany

Cross-border property transaction with full relocation service. Purchase of a high-end property, with tax status, residency and NHS registration handled remotely.

Complete relocation service, from property due diligence to handing over the keys

Read the full case

Retirement

Canadian couple, retirement property in Puglia

From Toronto to the Itria Valley. Purchase of a farmhouse with cadastral issues, 7% flat tax on foreign pensions, elective residence visa and healthcare transition.

7% flat tax activated, cadastral issues resolved before the deed of sale

Read the full case

Business

British entrepreneur, opening a business in Milan

Post-Brexit, a London-based tech entrepreneur establishes an operational headquarters in Milan. Immigration pathway as a non-EU national, company incorporation, and tax planning.

European operational hub established with self-employment visa successfully obtained

Read the full case

Tax Planning

Swiss retiree: 7% flat tax regime in Southern Italy

A banking executive relocates from Zurich to Calabria. Management of the Swiss occupational pension pillar, Italy-Switzerland Tax Convention, and deregistration from the cantonal tax register.

7% flat tax activated on all foreign-sourced income

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Retirement

American couple: retirement project in Abruzzo with visa and flat tax

From Connecticut to Abruzzo. Elective residency visa, 7% flat tax coordinated with IRS and FATCA obligations, and transition from Medicare to the Italian NHS (SSN).

7% flat tax activated on Social Security and 401(k) pension income

Read the full case

Relocation

German couple, from Munich to Tropea

Retired engineers from the Bavarian automotive sector. Multi-tier pension management, Italy-Germany Tax Convention, and the 7% preferential tax regime.

Three German pension pillars optimised with Italian flat tax

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Business

Startup tech: apertura filiale italiana per il mercato EU

A Bay Area SaaS company establishes a Milan headquarters. Innovative startup SRL, EU Blue Card for the team, transfer pricing, impatriates tax regime, and GDPR compliance.

Operational within 5 months, payroll cost −35% with impatriates tax regime

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Business

Fashion brand, representative office in Milan

Brand premium newyorkese apre presidio a Milano. Strutturazione per evitare stabile organizzazione, trasferimento direttrice creativa e gestione showroom.

Rischio stabile organizzazione prevenuto, presidio EU operativo

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Corporate

Manufacturing company, ICT transfers to Italy

Multinazionale giapponese trasferisce 3 figure chiave in Piemonte. Permessi ICT per manager e specialista, coordinamento consolare e regime impatriati per tutti i dipendenti.

3 trasferimenti completati in 4 mesi e mezzo, linea produttiva avviata nei tempi previsti

Read the full case

Relocation procedure: how Boschetti Law Firm can help you

The procedure for relocating to Italy through a professional relocation service generally follows these key steps:

Phase 1: Initial consultation and planning

The process begins with an introductory meeting – also available online – during which the client’s specific needs are defined. Before the meeting, in order to be well-prepared, we ask for the completion of a strategic questionnaire. Once we have reviewed all the information received, we develop a detailed action plan. In this phase, our professionals analyze the individual situation to identify the best relocation strategy and, if the client is a non-EU national, the most appropriate visa type.

Phase 2: Document preparation

This crucial phase involves collecting and preparing all the necessary documents for the visa and residence permit application. Our experts guide you in filling out the forms, translating and legalizing the documents, and preparing the full dossier to be submitted to the competent authorities.

Phase 3: Housing search and logistics

In parallel with the bureaucratic process, the destination services include the search for suitable housing solutions. This may involve identifying temporary accommodations for the initial period and subsequently finding a permanent home, including rental contract negotiation or support in purchasing property. We also ensure the legal compliance of the transaction, working with notaries and other trusted professionals.

Phase 4: Post-arrival settlement services

Once in Italy, support continues with essential settlement services:

Residence permit application for non-EU citizens
Municipal registration
Request for identity card and tax code
Opening of bank accounts
Enrollment in the national health system
Assistance with children’s school registration
Orientation in essential local services

The mobility manager coordinates all these activities, serving as a single point of contact throughout the entire relocation process to Italy.

With MyRelocation, you have a level of freedom that no one else offers.

Our relocation service supports individuals and families moving to Italy, providing comprehensive assistance at every stage of the process: obtaining visas and residence permits, handling civil registry and tax procedures, home search, real estate consultancy and management, opening bank accounts and utility services, school enrollment and access to the healthcare system, as well as translations, assistance and support with administrative procedures. We provide a list of over 25 services with the aim of ensuring a simple, safe and stress free relocation.

In our Relocation contract, we have embedded a freedom that no other provider offers you. You are no longer bound to a rigid agreement but instead authorized to add or remove services whenever you want, without constraints or penalties.

We have created the first contract designed to evolve over time, because Relocation is a process that can last months or even years, and needs often change when plans move from paper to real life. Our approach is transparent, dynamic and tailored to accompany you along the journey, only with the services that are truly useful to you. You have full control over both the contract and the budget.

Your needs change, your contract adapts!

No fixed commitments
You only pay for what you need, if you need it
Customizable services at every stage of the process
Redefine the services in your contract if priorities or budget change
Total flexibility
Zero penalties

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FAQ – Relocation service to Italy

Foreign pensioners in Italy: how the 7% flat tax regime works and who can access it

The 7% flat tax regime allows individuals receiving pensions from foreign entities to transfer their tax residence to a municipality in Southern Italy (with fewer than 20,000 inhabitants) and apply a 7% substitute tax on all foreign-source income for nine tax years.

Eligible municipalities are located in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia, as well as certain municipalities affected by the 2009 earthquake. The regime applies to all categories of foreign-source income. The option is exercised in the tax return, indicating the chosen municipality of residence.

Registered residence in Italy but tax residence abroad: is it possible and what does it imply?

This is a potentially risky situation. Registration in the Italian population registry creates a presumption of tax residence in Italy, with the obligation to declare worldwide income. This presumption can be rebutted by demonstrating that tax residence is abroad, including through registration with the AIRE or under applicable double taxation treaties, but the burden of proof remains on the taxpayer.

The Italian Revenue Agency may assess these situations based on objective factors. The presence of personal or economic ties in Italy may affect the determination of tax residence. It is therefore advisable to define one’s tax position in advance and prepare adequate supporting documentation, also considering tools such as advance rulings.

Health card for foreign nationals with elective residence: how to obtain it and what it covers?

Foreign nationals holding a residence permit for elective residence may enroll in the Italian National Health Service (SSN) on a voluntary basis, subject to payment of an annual contribution. Enrollment grants access to healthcare services under the same conditions as SSN beneficiaries, including general practitioners, specialist care, and hospital treatment.

The annual contribution is calculated based on total income and cannot be lower than €387.34. Alternatively, private health insurance may be used, provided it meets the requirements for residence in Italy.

New residents regime vs inbound workers regime: which is more advantageous and what are the requirements?

The new residents regime (Art. 24-bis TUIR) provides for a flat tax of €200,000 per year on all foreign-source income, regardless of the amount. The inbound workers regime (Art. 16 of Legislative Decree 147/2015) allows a reduced taxation on employment income produced in Italy. They are designed for different profiles.

The new residents regime is suitable for individuals with very high foreign income who do not work in Italy. The inbound workers regime is intended for those who move to Italy for work and have not been tax resident there in the previous two years. They are only partially compatible. The choice should be made before relocating.

Relocation: why are due diligence and real estate advisory crucial before purchasing?

Because the Italian real estate market presents specific risks that foreign buyers may not be aware of: unauthorized building works not regularized, outstanding mortgages, cadastral discrepancies, landscape restrictions, and undisclosed easements. Technical and legal due diligence carried out before signing the preliminary agreement allows these issues to be identified while it is still possible to renegotiate or withdraw.

Specialized real estate advisory for foreign clients also includes urban planning checks, verification of systems compliance, independent property valuation, and assistance in negotiations. Purchasing without these checks exposes the buyer to unexpected costs and post-acquisition disputes.