Italy’s Flat Tax Regime to Offer Pre-Approval for New Residents

Italy’s flat tax regime for new residents now offers a major advantage through its advanced tax ruling process. The €200,000 flat tax program has introduced a pre-approval option, that will allow prospective residents to secure tax certainty before relocating.

This process enables high-net-worth individuals to confirm eligibility and clarify tax treatment, making it an appealing option for those planning to move to Italy.

How the Pre-Approval Process Works

The €200,000 flat tax program requires a fixed annual payment of €200,000 for the primary applicant and €25,000 per dependent. It replaces progressive taxation on foreign-sourced income with a single levy, offering a clear and predictable tax structure.

To qualify, applicants must have lived outside Italy for at least 9 of the last 10 years and must establish residency or domicile in Italy.

Advantages of the Advanced Tax Ruling

• Official confirmation of tax status from Italy’s Revenue Agency (Agenzia delle Entrate) before relocation.

• Clear guidelines on tax treatment for foreign income, investments, and assets.

• The option to submit queries about specific financial situations before committing to residency.

• Applications can be filed while still abroad, with responses typically within 90 days, though this may extend up to 150 days if additional documents are required.

More Clarity and Stability for Prospective Residents

The pre-approval process reduces uncertainty, allowing investors to fully understand their tax position before moving to Italy. By securing confirmation in advance, applicants can avoid unexpected tax liabilities and ensure that their financial planning aligns with Italy’s flat tax framework.