The Italian government plans to raise the fixed tax on income from foreign sources from 200,000 to 300,000 euros. The change will affect wealthy foreigners moving to the country. The bill is still under consideration and is expected to enter into force in 2026.
This increase will be the second in a short period of time.The tax program has been in place since 2017, and at that time the tax was 100,000 euros. Then, in 2024, it was increased to 200,000 euros for new applicants.
Many details remain unclear: whether the increase will apply only to new applicants or to those who have already moved and are using the tax scheme, whether family members will continue to pay less, and whether the government will introduce any new conditions, such as mandatory investments.
Supporters of the reform argue that even with a higher rate, Italy will remain an attractive jurisdiction compared to other countries.
Critics believe that a repeated tax increase just one year after the previous one could undermine the trust of foreigners who value long-term stability.
The preferential tax program applies only to income from abroad and can be applied for 15 years.
Source: IMI
