01Which benefit suits me?
It depends on what you do and where your income comes from. These are the most common cases.
Employee, executive or self-employed: you pay tax on only half your salary for five years. This is the impatriate regime.
If you come to teach or do research in Italy, 90% of your income is tax-free for six years.
Dividends, companies, investments outside Italy: you can choose to pay a fixed amount each year instead of normal taxes. This is the flat tax.
With your residence in Milan, purchase taxes drop to 2% of the cadastral value, and you pay no IMU.
02I am coming to work in Milan: how much do I save?
For five years you pay tax on only 50% of your salary. With minor children the exemption rises to 60%.
Example: an executive moves to Milan with a gross salary of €150,000. Normally they would pay about €60,000 in tax a year. With the impatriate regime they are taxed on only €75,000 and pay about €26,000. That is a saving of about €34,000 a year, €170,000 over five years.
This rises to 6 or 7 years if you work for the same employer or group you had before moving.
A degree or a high-level specialisation.
If you leave earlier, the benefit must be repaid.
Above this threshold your salary is taxed normally.
03I am a lecturer or researcher: what changes?
90% of your teaching or research income is tax-free for six years.
It applies to people who have taught or done research abroad for at least two years and come to do the same work in Italy, at a university or research centre. The six years can be extended if you have minor children or buy a home in Italy.
04What is the flat tax, really?
An option for people with very high foreign income: instead of paying normal Italian tax on what they earn outside Italy, they pay a fixed €300,000 a year, whatever the amount.
As a rule, an Italian resident pays Italian tax on worldwide income: up to 43% on employment and business income, 26% on dividends and interest. If your foreign income is modest, the flat tax is of no use and would cost you more. It becomes worthwhile when normal taxes would exceed €300,000, which usually means more than €700,000 a year of employment or business income, or more than €1.2 million of dividends and interest.
Example: an entrepreneur moves to Milan and receives €2 million a year in dividends from their company abroad. As an ordinary resident they would pay 26% in Italy, that is €520,000. With the flat tax they pay €300,000 and owe nothing more on those dividends: a saving of €220,000 a year, for up to 15 years.
There are further advantages: no Italian tax on investments (IVAFE, 0.2% a year) or property (IVIE, 1.06%) held abroad, no inheritance or gift tax on foreign assets, no obligation to report them in detail. Each family member included costs an extra €50,000 a year.
Does the flat tax pay off? Try it
Estimated saving
With these amounts the flat tax does not pay off: it would cost an extra a year.
- Income tax and surcharges
- 26% on financial income
- IVAFE 0.2%
- IVIE 1.06%
Simplified estimate to show the order of magnitude: it does not take into account tax already paid abroad, double tax treaties or the inheritance tax saving. Check it with a tax adviser.
- It is open to people of any nationality who have not been resident in Italy for at least 9 of the last 10 years.
- You opt in with your tax return and it lasts up to 15 years; it can be revoked, but not reactivated.
- People who moved before 2026 keep the amount in force then: €100,000 until August 2024, €200,000 until the end of 2025.
- It does not cover capital gains on qualifying shareholdings sold in the first five years.
05What do I gain if I buy a home in Milan?
If it becomes your residence, purchase taxes are the lowest available and you pay no IMU.
Buying from a private seller, registration tax on the cadastral value drops from 9% to 2%. From a developer, VAT drops from 10% to 4%. You just need to move your residence within 18 months.
No municipal property tax on your main home, except luxury categories.
Rent from a home in Italy remains Italian income, even with the flat tax: with the “cedolare secca” you pay 21% of the rent.
Simplified examples, calculated with 2026 rates and average surcharges, without deductions or foreign tax credits. This is general information: the choice of regime should be checked with a tax adviser.