The Italian real estate market is of great interest, both for the purchase of properties for personal use and as an investment, due to the great tourist attraction of Italy, and also for renting apartments in cities of art such as Rome, Milan, Florence , or villas with swimming pools in Tuscany or on the versilian coast in Forte dei Marmi.

An important aspect of great investment attraction is associated with the next Olympic Games  in Italy in 2026 in Milan and Cortina d’Ampezzo

After the end of the pandemic, foreign demand for the purchase of properties increased, and in 2022 a clear growth trend emerged and, compared to 2020, sales increased by almost 90%,  2023 is closing very well, and the trend we have observed will be confirmed in 2024.

For many, Italy attracts for its iconic places, where it is possible to come into contact with a piece of culture and history in a fairytale place.

Incomparable Italian cuisine, wonderful landscapes, art, villages rich in history and the possibility of taking tax benefits.

We often see wealthy families moving to Italy for tax reasons.

Briefly:

A single tax rate called “flat tax” on all income produced in different countries around the world is equal to 100.000 euros per year for those who become new tax residents in Italy

And now in more detail:

TAX REGIME FOR NEW RESIDENTS

The tax regime for new residents is intended for those who move to Italy and become new residents and provides for a single substitute tax on income in the amount of 100,000 euros for each financial year and is valid for the first 15 years. 

The regime can also be extended to family members, and the single tax per family member will be 25,000 euros.

Who can access:

Tax regime available for “new residents” in Italy,

who (regardless of nationality or place of residence) have not been tax resident in Italy for at least 9 years out of 10, before their move to Italy.

IMPORTANT:

Only income produced abroad is subject to the single substitute tax.

Income received in Italy is taxed according to the usual rules.

RESIDENCE

Before moving to Italian territory, a person must have tax residence abroad.

To become a tax resident in Italy, you need to rent or buy a house in Italy to take up residence within, but first contact an accounting firm to provide a complete income picture to the Revenue Agency to obtain approval for the single flat tax.

The benefits start from the tax year in which the person becomes a tax resident in Italy.

HOW NOT TO MISS A YEAR OF BENEFITS

For physical persons the tax year coincides with the calendar year, therefore, if a taxpayer moves to Italy after 2 July (after 1 July in the case of a leap year), he cannot be considered a tax resident in that year, for example those who are registered in the Municipal office after 1 July 2024 is NOT considered a tax resident in 2024  and therefore cannot receive tax benefits for this tax year, so to find an apartment for rent or purchase you must take action at the beginning of the year or at least in spring so as not to miss the year of tax benefits.