![Logo image of GTC [Global Tax Consulting]](https://cdn.prod.website-files.com/67bd5c9680af1c40ff10e306/67bd796cc17570aff771447c_gtc-logo.avif){kind=logo}
Relocating to Italy is a dream for many, offering a rich blend of history, culture, and stunning landscapes. Whether you're drawn to the artistic streets of Florence, the bustling energy of Milan or the coastal beauty of the Amalfi Coast, Italy provides an unparalleled quality of life.
In this guide, we’ll walk you through everything you need to know about relocating to Italy from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you spend more than 183 days in Italy during the tax year.
if your principle place of business is in Italy.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you are a citizen of Italy and transfer your tax residency to a tax haven.
if you spend more than 183 days in Italy during the tax year.
if your principle place of business is in Italy.
if you are a citizen of Italy and transfer your tax residency to a tax haven.
if you are registered with the Italian resident population.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
.svg)
Providing that you were non-resident for two years prior to arrival, you will live in Italy for two years and you will be present in Italy on at least 183 days per calendar year, you can exempt 50% of your employment income or self-employment income for a period of five tax years.
Providing that you are non-domiciled and you were non-resident for nine years prior to arrival, you can pay a lump sum tax charge of EUR 100,000 on your foreign incomes and gains for 15 tax years.
* Italy can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in Italy, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Italy has 99 double taxation agreements signed.
