Moving from France to Italy under the EUR 300,000 flat tax
France-to-Italy is not simply a lower-rate move. Italy's EUR 300,000 annual flat tax on foreign income is designed for very high foreign income, while France's 31.4% PFU, IFI and factual residence tests determine the cost of leaving.
Italy's flat tax has a high entry price
Italy charges EUR 300,000 per year on foreign income for new residents, plus EUR 50,000 per family member, for up to 15 years. Anyone who relocated before the 2026 increase is grandfathered at their previous rate. The regime is a break-even calculation, not a universal improvement over France's 31.4% PFU.
Italian-source income remains outside the flat-tax shelter and is taxed under ordinary IRPEF, which reaches 43% from EUR 50,000 plus representative regional and municipal surcharges of about 1.73% and 0.8% in Lombardia and Milano.
France's departure is a factual analysis
France's Article 4B has four alternative residence tests. A French home or family centre can sustain residence on well under 183 days. French investment income is subject to the 31.4% PFU in 2026, and IFI reaches net real estate above EUR 1.3M.
An Italian residence certificate does not, by itself, prove the French home, family and economic-centre facts have ended. The departure date and asset location should be documented together.
Italy adds its own foreign-asset charges outside the regime
Even under ordinary Italian residence, IVIE at 1.06% reaches foreign real estate and IVAFE at 0.2% reaches foreign financial assets. The flat tax's scope and exclusions need to be checked against the portfolio before it is compared with the French position.
Before you move
- The EUR 300,000 flat tax applies to foreign income; Italian-source income is taxed normally.
- France does not use a single safe 183-day rule under Article 4B.
- The EUR 300,000 figure applies to new arrivals in 2026; earlier movers are grandfathered at their previous rate.
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Tax rates are only the first screen. Residency, ownership, treaty position and succession can change the outcome.
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