Taxation

Preferential tax regimes in Italy: the 2026 guide

New-resident, inbound-worker and flat-rate self-employment regimes address different circumstances. Ordinary IRPEF is a comparison, not an incentive. Reviewed: 27 September 2026.

The four regimes compared

Neo-residents (art. 24-bis TUIR)

HNWI with high foreign income

Benefit: €300,000 a year on foreign income covered by the regime; €50,000 per eligible family member. New amounts concern transfers of residence under Civil Code art. 43 from 1 January 2026. Exclusions remain, including certain gains during the first five tax periods.
Duration: Up to 15 years
Requirement: Not Italian tax resident in at least 9 of the previous 10 tax periods; verify transfer date, income source and any excluded countries.

Source: L. 199/2025 art. 1 cc. 25-26 (Bilancio 2026)

Dedicated article

Inbound workers (D.Lgs. 209/2023, art. 5)

Qualified workers transferring their residence

Benefit: 50% of eligible work income produced in Italy enters the tax base, within the annual €600,000 limit; the taxable share falls to 40% in the statutory cases involving minor children.
Duration: Transfer year and four following years; the transitional extension concerns only certain 2024 transfers.
Requirement: Qualifications, work mainly in Italy and at least four years’ residence commitment. Previous non-residence: at least three tax periods, or six/seven in same-employer/group cases.

Source: D.Lgs. 27 dicembre 2023 n. 209, art. 5

Dedicated article

Forfettario (flat-rate VAT 15%)

Self-employed professionals / small entrepreneurs

Benefit: 15% of income determined using the activity coefficient; 5% for the first five periods only if new-business conditions are met. Social contributions must be assessed separately.
Duration: No fixed duration; ordinary threshold €85,000, with cessation in the current year above €100,000 under the applicable rules.
Requirement: Individuals carrying on business or professional activities: ordinary receipts threshold of €85,000 plus other eligibility conditions and exclusions.

Source: L. 190/2014, art. 1, cc. 54–89

Ordinary IRPEF

Default for tax residents

Benefit: In 2026: 23% up to €28,000, 33% on the portion €28,000–50,000, 43% above €50,000, plus applicable local surtaxes. Allowances and tax credits affect the outcome.
Duration: Permanent
Requirement: Italian tax residence (art. 2 TUIR)

Source: D.P.R. 917/1986 (TUIR)

Official regulatory sources

Professional disclaimer: Introductory information, not an individual tax procedure. Eligibility and filings require an appointed tax professional. My role concerns the financial and wealth implications of relocation; coordination with other professionals must be agreed.

Frequently asked questions

Are the new-resident and inbound-worker regimes interchangeable?

No. The former concerns eligible foreign income; the latter certain work income produced in Italy. Residence alone does not establish eligibility. Income type, source and amount must be mapped before comparing.

Is there one income level at which the flat tax becomes worthwhile?

No universal threshold applies. Compare actual ordinary taxation, foreign taxes, usable credits, exclusions and family members. Dividing the fixed amount by 43% does not reproduce progressive IRPEF.

Who uses the new €300,000 and €50,000 amounts?

Law 199/2025, art. 1 paragraphs 25–26, links them to transfers of residence under Civil Code art. 43 from 1 January 2026. The year the option is exercised alone does not determine the amount.

How can I prepare for a tax review?

Gather residence history, employment relationships, income sources, investment documents and family details. A tax adviser checks eligibility, incompatibilities, the return election, payments and whether a ruling is useful; this page does not replace that work.

Are you considering a move to Italy?

An initial discussion of the wealth implications of relocation and documents to review with your tax adviser.

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