Are you considering moving to Italy for tax purposes? From the 7% flat tax for pensioners in the south to the new 2026 rates for high-net-worth individuals – here is the updated guide to Italy’s most favorable tax regimes and the latest legal changes you need to know.

Updated February 2026 – see details below. What does the term “tax residence” mean? Before we look at the new rules in Italy, we must first agree on what the expression “tax residence” entails. This term is used to determine which country you are obligated to pay taxes to. If you spend the majority of the year in Italy—specifically 183 days (or 184 days in a leap year)—you are required to have your tax residence in Italy. The Italian state also considers you a tax resident if