Italy offers two distinct pathways for foreign investors and high-net-worth individuals seeking European residency: the Flat Tax Regime (Regime dei Neo-Residenti) and the Investor Visa programme. Both provide full Schengen area access and a path to one of the world's most powerful passports.
Option A: Flat Tax Regime (€100,000/year)
Introduced in 2017, Italy's Flat Tax for new residents allows individuals to pay a fixed €100,000 annual lump-sum tax on all foreign-sourced income — regardless of the actual amount earned abroad. Key features:
- No minimum investment required — simply transfer tax residency to Italy
- €100,000/year covers ALL foreign income (dividends, capital gains, rental income, business profits)
- Family members can join for an additional €25,000/year each
- No requirement to report foreign assets or accounts (CRS/FATCA exemption on foreign assets)
- Valid for up to 15 years
- Must spend at least part of the year in Italy (standard tax residency rules apply)
Option B: Investor Visa
The Italian Investor Visa provides a 2-year renewable residency permit (convertible to a 3-year permit) with one of the following investments:
- €2,000,000 in Italian government bonds
- €500,000 in shares of an Italian company (limited or joint-stock)
- €250,000 in an Italian innovative startup
- €1,000,000 philanthropic donation to a project of public interest in Italy
Path to Citizenship
After 10 years of legal residency, applicants can apply for Italian citizenship — granting access to one of the world's most powerful passports (190+ visa-free countries, full EU citizenship). Italian citizenship is also available via descent (jure sanguinis) for those with Italian ancestry.
Tax Advantages vs Other European Programmes
Compared to Portugal (NHR now abolished for new applicants) and Spain (Beckham Law limited to employment income), Italy's Flat Tax regime is particularly attractive for individuals with large foreign investment portfolios, as the entire foreign income tax liability is capped at €100,000/year regardless of the amount.