Italy Flat Tax for New Residents Calculator (300k)

The lump sum replaces ordinary Italian tax on all your foreign-source income and gains, identified by the same criteria Italy uses to decide what counts as foreign income for a tax credit. It also exempts foreign real estate and financial assets from IVIE and IVAFE, and keeps them out of the quadro RW monitoring obligation. Italian-source income, such as an Italian salary, an Italian rental property, or Italian investment income, is not covered: it keeps paying ordinary Italian tax exactly as it would without the option.

The substitute-tax amount is fixed by the date you transferred your civil residence (art. 43 of the civil code, your habitual and stable home, not simply where you are registered) to Italy: 100,000 EUR up to 9 August 2024, 200,000 EUR from 10 August 2024 to 31 December 2025, and 300,000 EUR from 1 January 2026. Whichever amount applied on your transfer date stays fixed for your entire option, even as the headline number keeps changing for people who move later. The trap is the date itself: art. 43 civil residence is about where you actually live, not your registration paperwork, so a registration filed late or early relative to an actual move can land you in a different cohort than you expected.

The option runs for a maximum of 15 tax periods and cannot be renewed once it ends. It is paid in a single annual installment, due by 30 June of the following year, with no installment plan and no ravvedimento (the usual late-payment remedy) available for it. Missing the deadline forfeits the option for that year and ends it going forward: there is no partial year or grace period built into the rule.

Foreign real estate and financial assets covered by the option are exempt from IVIE (ordinarily 1.06% of value) and IVAFE (ordinarily 0.2%, or 0.4% for assets in blacklisted jurisdictions), and from the quadro RW foreign-asset monitoring requirement. Italian inheritance and gift tax also applies only to Italian-situated assets for the option holder's estate, not to foreign ones, though this calculator does not attempt to quantify that benefit since it depends heavily on the specific estate.

It assumes addizionali (regional and municipal surtax) are not due on income covered by the option, a reasonable inference rather than a cited rule, since the option replaces the IRPEF base addizionali are calculated on top of. It models IVIE and IVAFE at their standard rates only, not the higher blacklist IVAFE rate. It does not model the five-year carve-out that keeps gains on qualified shareholdings ordinarily taxed regardless of the option, and it does not put a number on the inheritance-tax benefit. Most importantly, it does not check whether you actually qualify for the option.

No. This calculator gives you a fast estimate of the option's arithmetic against ordinary Italian taxation of the same income, so you can see roughly where the numbers land, but it is not tax advice. Eligibility (the 9-of-10-years non-residence test), the exact scope of your foreign income under Italian rules, and how the option interacts with your home country's own tax system all need a commercialista's review before you rely on this for a real decision.