Moving from the UK to Italy under the flat tax
Italy's regime for new residents is a fixed annual charge on foreign income, and the price changed. It is EUR 300,000 per year, raised from EUR 200,000 by the 2026 Budget Law of 30 December 2025. Anyone who relocated before the increase keeps their old rate.
It is a break-even calculation, not a rate comparison
The flat tax replaces tax on foreign income with a fixed EUR 300,000, plus EUR 50,000 per family member (up from EUR 25,000). It runs up to 15 years and is revocable.
Against UK worldwide taxation at 45% plus dividends at 35.75%, the crossover sits well into the millions of annual foreign income. Below that crossover, the flat tax is simply expensive. Above it, fifteen years of certainty at a fixed number is the most durable regime on this list — longer than UK FIG's four years and Greece's fifteen at a lower headline charge but narrower scope.
Italian-source income is not covered
The flat tax concerns qualifying foreign income. Review Italian-source income under the ordinary rules, including the actual regional and municipal charges, before estimating a combined liability.
If you intend to work in Italy, the Impatriati regime is the separate lever: 50% of Italian employment income exempt, 60% with a minor child, capped at EUR 600,000 of income, for 5 years.
Residence triggers earlier than you think
Italy applies four alternative tests: 183 days, habitual residence, domicile, or Anagrafe enrollment — the last rebuttable since the 2024 reform. You do not get to pick the friendliest one.
Before you move
- EUR 100,000 and EUR 200,000 flat-tax figures are everywhere online and are both wrong for a 2026 arrival.
- IVIE at 1.06% on foreign real estate and IVAFE at 0.2% on foreign financial assets are separate charges — check whether your structure attracts them.
- UK IHT still runs on the 10-of-20-years residence test; Italy's own inheritance tax is 4% above EUR 1M per heir in the direct line, which is mild by comparison.
Continue your research
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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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