Does Italy tax foreign income?

EUR 300k a year flat, whatever the amount (new residents from 2026; EUR 200k for 2024-25 arrivals, EUR 100k before. In one line: EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income.

Can I run an online business from Italy?

Effective tax about 15% with the cheapest legal set-up, which costs about USD 1,500 a year: regime forfettario: 15% (5% the first 5 years) on 78% of revenue up to EUR 85k; above that ~43%; the EUR 300k flat tax covers foreign income only.

What is the catch in Italy?

Must not have been Italian tax resident in 9 of the previous 10 years.

What residence or citizenship programmes does Italy have?

Investor visa: about USD 300k all-in for one person, ~4 months; Elective residence visa: about USD 3,000 all-in for one person, ~3 months; Flat tax for new residents: about USD 10k all-in for one person, ~3 months

Moving to Italy: tax, residence and real costs (2026)

Italy: EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income. The cheapest route to residence is elective-residence visa (non-EU, ~EUR 31k a year passive income) or EU registration: about USD 1,000 in fees doing it yourself, with no investment, with about USD 2,600 a month of income shown, in about 3 months. Living costs about USD 1,950 a month for one person in Rome, USD 1,150 in Terni, and around USD 1,050 on a bare-minimum budget.

Key facts

Tax in one line	EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
Foreign income	EUR 300k a year flat, whatever the amount (new residents from 2026; EUR 200k for 2024-25 arrivals, EUR 100k before
Gains · dividends	foreign: covered by the flat tax; Italian: 26% · foreign: covered
Wealth · inheritance tax	IVIE/IVAFE on foreign assets waived under the regime · foreign assets exempt under the regime; else 4% to children above EUR 1 M
Cheapest residence	elective-residence visa (non-EU, ~EUR 31k a year passive income) or EU registration
Money needed	About USD 1,000 in fees doing it yourself, with no investment
Time	about 3 months
Doable yourself?	Mostly; a local fixer for one step helps
Days you must spend there	183 days / main home
Citizenship	10 years (4 for EU)
Online business	15% effective, about USD 1,500 a year to run: regime forfettario: 15% (5% the first 5 years) on 78% of revenue up to EUR 85k; above that ~43%; the EUR 300k flat tax covers foreign income only
Living (one person a month)	Rome ~USD 1,950; bare minimum ~USD 1,050; family of four ~USD 3,850
Good for	the flat tax shields foreign income, gains and also Italian inheritance tax on foreign assets; EU residence
Common set-up	flat-tax election in the first return + a house in Milan or on a lake; family members join at EUR 50k each

Pros and cons

Pros	Cons
Live in Milan, Rome, Lake Como with a capped tax Foreign assets out of inheritance tax EU	Worth it only with very high foreign income Bureaucracy Italian income taxed normally

Programmes

Programme	All-in, one person	Months	Notes
Investor visa	USD 300k	4	EUR 250k in an innovative start-up, EUR 500k in a company, EUR 1 M donation, or EUR 2 M government bonds. Pairs with the flat tax.
Elective residence visa	USD 3,000	3	No investment: passive income of ~EUR 31k a year (more for families) and a home. The cheap entry for retirees and flat-tax candidates.
Flat tax for new residents	USD 10k	3	EUR 300k a year flat (arrivals from 2026), EUR 50k per family member, 15 years.

Questions

How much does residence in Italy cost?: Elective-residence visa (non-EU, ~EUR 31k a year passive income) or EU registration: about USD 1,000 in fees doing it yourself, with no investment, about 3 months.
Does Italy tax foreign income?: EUR 300k a year flat, whatever the amount (new residents from 2026; EUR 200k for 2024-25 arrivals, EUR 100k before. In one line: EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income.
What does it cost to live in Italy?: Living costs about USD 1,950 a month for one person in Rome, USD 1,150 in Terni, and around USD 1,050 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Italy?: Effective tax about 15% with the cheapest legal set-up, which costs about USD 1,500 a year: regime forfettario: 15% (5% the first 5 years) on 78% of revenue up to EUR 85k; above that ~43%; the EUR 300k flat tax covers foreign income only.
What is the catch in Italy?: Must not have been Italian tax resident in 9 of the previous 10 years.
What residence or citizenship programmes does Italy have?: Investor visa: about USD 300k all-in for one person, ~4 months; Elective residence visa: about USD 3,000 all-in for one person, ~3 months; Flat tax for new residents: about USD 10k all-in for one person, ~3 months

Compare

Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise
United Kingdom (FIG regime): first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide

Compare all 53 places with your own income and budget →

Sources

https://www.agenziaentrate.gov.it
https://www.bakermckenzie.com/en/insight/publications/alerts/2025/10/italy-increase-to-flat-tax-for-new-residents
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded