{"id":2688,"date":"2023-07-24T13:45:33","date_gmt":"2023-07-24T13:45:33","guid":{"rendered":"https:\/\/www.italyvisainvestments.com\/?page_id=2688"},"modified":"2026-04-23T08:21:41","modified_gmt":"2026-04-23T08:21:41","slug":"new-resident-regime","status":"publish","type":"page","link":"https:\/\/www.italyvisainvestments.com\/en\/relocation-and-life-in-italy\/new-resident-regime\/","title":{"rendered":"New Resident Regime"},"content":{"rendered":"
Tax benefits<\/div>\n

New Resident Regime<\/h1>\n
\n

The 2017 Budget Law introduced a preferential tax regime for new residents in Italy, known as the \u201cnew residents tax regime\u201d or \u201coptional regime for new residents\u201d.<\/p>\n

This regime was established to encourage both Italian and foreign individuals to transfer their tax residence to Italy, with a particular focus on attracting high net worth individuals.<\/p>\n

The new residents regime, which can therefore also be considered a tax benefit for foreigners in Italy, was designed to attract investment into the country and to stimulate interest among taxpayers and their families holding significant assets.<\/p>\n

This measure competes with similar tax incentives available in other jurisdictions, such as Switzerland, the United Kingdom and Portugal. Unlike other countries, Italian law does not require individuals to purchase real estate, deposit a minimum amount of funds in domestic bank accounts, or carry out a specific work activity in Italy.<\/p>\n

The objective pursued by the Italian State is therefore to leave taxpayers broad discretion in determining how to integrate their tax residence within Italy.<\/p>\n<\/div>\n

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Benefits of the new resident regime for foreigners in Italy<\/h2>\n
\n

The new residents regime allows, for a maximum period of 15 years, the payment to the Italian tax authorities of a fixed annual substitute tax of 100,000\u20ac on the total amount of foreign-sourced income, with the possibility to exclude specific jurisdictions, reduced to 25,000\u20ac for family members of the main applicant. The amount has been increased to 200,000\u20ac for individuals who transferred their residence from 10 August 2024, and the 2026 budget law provides for a further increase to 300,000\u20ac.<\/strong><\/p>\n

In essence, the different thresholds apply as follows:<\/p>\n

    \n
  • 200,000\u20ac<\/strong>\u00a0= regime applicable to transfers up to 31 December 2025<\/li>\n
  • 300,000\u20ac<\/strong> = applicable to individuals transferring their residence from 1 January 2026<\/li>\n<\/ul>\n

    In addition, the new residents regime in Italy:<\/p>\n

      \n
    • provides for a full exemption from inheritance and gift tax on assets held abroad,<\/li>\n
    • provides for exemption from wealth taxes on real estate located abroad (IVIE) and on financial assets held abroad (IVAFE).<\/li>\n<\/ul>\n

      This regime therefore represents a tax benefit of clear interest for those taxpayers wishing to relocate to Italy, while avoiding that such decision may, at least for the 15-year duration of the regime, have a negative tax impact on the management of their wealth.<\/p>\n<\/div>\n

      [sign-in]<\/p>\n

      Who can opt for the new resident regime?<\/h2>\n
      \n

      Only individuals who have not been tax resident in Italy for at least 9 out of the previous 10 tax years may access the new residents regime.<\/strong><\/p>\n

      The first requirement, therefore, is the transfer of the individual\u2019s tax residence from a foreign country to Italy pursuant to Article 2, paragraph 2, of the TUIR.<\/p>\n

      Family members of the main applicant may also benefit from the regime, even at different points in time. More specifically, each family member may access the regime in periods different from that of the main taxpayer, for example where their transfer to Italy occurs at a later stage. The extension is made through an option exercised by the main taxpayer in the tax return. It is not a fully autonomous access, but rather an extension of the original option.<\/p>\n

      The following is the practical example provided by the Italian Revenue Agency: \u201cConsider the case of an individual who moves to Italy in 2019 and acquires tax residence in the country in the same tax period.<\/p>\n

      The same individual opts for the regime under Article 24-bis of the TUIR, as the main taxpayer, starting from 2019. In 2020, the spouse and children also move to Italy, and the main taxpayer extends the substitute tax regime to them starting from 2020. Finally, two years later, the mother also moves to Italy and therefore accesses the regime as a family member only from 2022\u201d.<\/p>\n

      Naturally, at the end of the 15-year period from the exercise of the option by the main taxpayer, the option ceases to have effect also with respect to the family members to whom it was extended, although for them reference must be made to the date of their entry into the regime.<\/p>\n<\/div>\n

      \n

      \"\"<\/p>\n<\/div>\n

      Requirements to access the new resident regime in Italy<\/h2>\n
      \n

      Article 24-bis of Presidential Decree no. 917\/1986, introduced by Article 1, paragraphs 152\u2013159 of Law no. 232\/2016, provides that this regime may be requested exclusively by taxpayers who meet all of the following conditions:<\/p>\n

        \n
      • with regard to the nature of the applicant, as only individuals may access the tax benefit;<\/li>\n
      • with regard to the transfer of tax residence to Italy, therefore requiring a transfer of tax residence from a foreign country to Italy;<\/li>\n
      • with regard to the fact that the individual has not been resident in Italy for at least nine out of the ten tax years preceding the start of the regime;<\/li>\n
      • with regard to the entry into force of the regime, which therefore applies for the first time to taxpayers who transferred their tax residence to Italy starting from the 2017 tax period.<\/li>\n<\/ul>\n

        Nationality is not a relevant factor. As clarified by the Italian Revenue Agency in Circular no. 17\/E\/2017, \u201c[\u2026] the nationality of the individual transferring residence is irrelevant, as access to the regime is granted both to foreign nationals and to Italian citizens, provided that the requirement of tax residence abroad for the period indicated by the law is met.\u201d<\/p>\n<\/div>\n

        Eligible foreign income under the new resident regime<\/h2>\n
        \n

        As already noted, the tax benefit applies only to foreign-sourced income. Income is considered \u201cproduced abroad\u201d based on a mirror interpretation of Article 23, used to identify income produced within the territory of the State.<\/p>\n

        The rationale of the regime is to attract to Italy individuals with substantial wealth and, at the same time, high spending and consumption capacity, capable of contributing to the growth of the national economy.<\/p>\n

        The Italian Revenue Agency itself has stated that the rationale of the legislation is to \u201cattract high-potential individuals by reason of the availability of significant capital and financial resources that can be invested in our Country\u201d. For this reason, \u201caccess to the benefit requires the actual transfer of the individual to Italy\u201d.<\/p>\n

        Given that the payment of the flat tax is required regardless of the amount of foreign income, in the absence of specific guidance it is also due in cases where such income is equal to zero, without prejudice to the taxpayer\u2019s right to opt out of the regime if it no longer represents a tax advantage.<\/p>\n

        The fact that the benefit is limited to foreign-sourced income encourages the new resident to substantially maintain the structure of their foreign assets unchanged; indeed, they are not required to relocate their financial holdings and may keep existing relationships with banks and asset managers active at the time of relocation.<\/p>\n

        Foreign-sourced income may include:<\/p>\n

          \n
        • income derived from real estate or land located outside Italy;<\/li>\n
        • capital income paid by foreign States or by non-residents;<\/li>\n
        • employment income, where the activity is performed outside the Italian territory;<\/li>\n
        • business income generated through a permanent establishment abroad;<\/li>\n
        • capital gains arising from the disposal for consideration of shareholdings in non-resident companies;<\/li>\n
        • other income derived from activities carried out abroad and from assets located abroad;<\/li>\n
        • interest and other proceeds from bank deposits and current accounts paid by foreign entities.<\/li>\n<\/ul>\n

          A specific case concerns taxpayers holding foreign income through an intermediary entity. As clarified by the Italian Revenue Agency in Circular no. 17\/E\/2017, \u201cif the individual holds foreign-sourced income through a foreign intermediary entity, such income will be subject exclusively to the substitute tax under Article 24-bis of the TUIR, subject to the exceptions provided therein\u201d.<\/p>\n

          Therefore, \u201cif an individual owns real estate located in Florida through an intermediary entity, the income derived from such property will be subject exclusively to the substitute tax\u201d.<\/p>\n

          Conversely, income sourced in Italy remains subject to ordinary taxation based on personal income tax, calculated according to progressive rates.<\/p>\n

          It should also be noted that the new resident taxpayer, as well as their family members, may exclude from the scope of the regime income produced in a specific foreign State.<\/p>\n<\/div>\n

          \n

          How to access the new resident regime<\/p>\n<\/h2>\n

          \n

          The option to apply for the New Resident Regime can be finalized in two ways:<\/p>\n

            \n
          1. In the tax return for the tax period in which the individual transferred their tax residence to Italy.<\/li>\n
          2. In the tax return for the subsequent tax period.<\/li>\n<\/ol>\n

            Regarding the deadline for submitting the tax return, it is essential to consider the provisions of Presidential Decree No. 322 of July 22, 1998. According to this regulation, the \u201csubmission deadline\u201d refers to the ordinary deadline for filing the Personal Income Tax Return (Modello Redditi Persone Fisiche).<\/p>\n

            Late Declaration and Penalty Payment<\/p>\n

            If the taxpayer paid the substitute tax by June 30 but failed to finalize the option in the relevant tax return, they can still correct the omission.<\/p>\n

            In accordance with Decree-Law No. 16 of March 2, 2012, the taxpayer may \u201crectify\u201d the missing declaration by including it in the tax return for the following year, subject to a fixed penalty of \u20ac250.<\/p>\n

            Seeking Professional Assistance<\/p>\n

            The New Resident Regime involves sensitive and complex tax matters. Therefore, before applying, it is highly advisable for foreign taxpayers to consult:<\/p>\n

              \n
            • A certified accountant (commercialista)<\/li>\n
            • A tax attorney (avvocato tributarista)<\/li>\n<\/ul>\n

              These professionals specialize in tax laws and regulations and can provide comprehensive and personalized assistance. They will explain:<\/p>\n

                \n
              • The requirements for eligibility<\/li>\n
              • The benefits of the regime<\/li>\n
              • The tax obligations associated with the New Resident Regime<\/li>\n<\/ul>\n

                A professional advisor ensures that the taxpayer correctly follows the procedure, maximizing the benefits while remaining fully compliant with Italian tax laws.<\/p>\n<\/div>\n


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                Tax benefits New Resident Regime The 2017 Budget Law introduced a preferential tax regime for new residents in Italy, known as the \u201cnew residents tax regime\u201d or \u201coptional regime for new residents\u201d. This regime was established to encourage both Italian and foreign individuals to transfer their tax residence to Italy, with a particular focus on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":3520,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-2688","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/comments?post=2688"}],"version-history":[{"count":14,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2688\/revisions"}],"predecessor-version":[{"id":5345,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2688\/revisions\/5345"}],"up":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3520"}],"wp:attachment":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/media?parent=2688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}