Executive summary
Italy offers two frameworks that often serve the same audience but address different needs. The Golden Visa provides residence rights based on investment. The Flat Tax regime defines how new residents can structure their taxation. Together, they create a transparent environment for individuals seeking residence and fiscal stability in Italy.
What is the Italy Golden Visa?
The Investor Visa for Italy, commonly called the Golden Visa, grants a renewable residence permit to non-EU nationals who make an approved investment.
Eligible routes include:
- €250,000 in an Italian innovative start-up
- €500,000 in shares of an Italian limited company
- €1,000,000 as a philanthropic donation supporting culture, research, or social causes
- €2,000,000 in Italian government bonds
The process begins with an online application to the Investor Visa for Italy Committee. Applicants provide documentation proving the source and legality of their funds. Once the Nulla Osta (certificate of no impediment) is issued, they can apply for a visa at an Italian consulate. After entering Italy, they must request a residence permit within eight days and complete the investment within three months.
The permit is valid for two years and can be renewed for three more if the investment remains active. Real estate does not qualify as an investment category.
For more on qualifying routes, see the Italy Golden Visa Program 2025 guide.
What is Italy’s Flat Tax regime?
Italy’s new resident tax regime (Article 24-bis of the Income Tax Code) allows eligible individuals to pay a fixed €200,000 per year on all foreign-source income. Family members can be added for €25,000 each.
To qualify, the applicant must not have been tax resident in Italy for at least nine of the previous ten years. The election can last up to 15 years.
Italian-source income continues to be taxed under ordinary progressive rates (IRPEF). The election is optional and made through a ruling or notification to the Agenzia delle Entrate (Italian Revenue Agency). More details are available on the Agenzia delle Entrate website.
How the two frameworks work together
Many investors obtain the Golden Visa first to establish legal residence. If they later move their tax residence to Italy, they can elect the Flat Tax regime to simplify their taxation.
In practice, this means:
- The Golden Visa provides the right to reside in Italy.
- The Flat Tax governs how global income is taxed once the person becomes tax resident.
The two frameworks are independent but compatible when coordinated carefully.
Key distinctions
| Aspect | Golden Visa | Flat Tax Regime |
| Purpose | Immigration status | Taxation of foreign income |
| Requirement | Investment of €250k–€2m | Non-residence for 9 of 10 years |
| Authority | Ministry of Economic Development | Italian Revenue Agency |
| Duration | 2 + 3 years renewable | Up to 15 years |
| Primary benefit | Residence permit and mobility | Predictable taxation on foreign income |
| Real estate route | Not eligible | Not applicable |
Due diligence and compliance
The Golden Visa process includes a review by the Investor Visa for Italy Committee. The committee verifies:
- the origin of funds,
- the applicant’s criminal record, and
- the alignment of the investment with Italian regulations.
Documentation must be clear, up to date, and translated where necessary. These requirements ensure consistency and reliability in approvals.
For the Flat Tax, compliance involves verifying tax residency and prior non-residence. The election may be revoked voluntarily but cannot be reinstated once withdrawn. Applicants must continue meeting Italian residency criteria to maintain the benefit.
Family considerations and long-term planning
The Golden Visa allows spouses, minor children, and dependent parents to join under family-unity provisions. Each family member holds their own residence permit, linked to the main applicant.
Under the Flat Tax regime, dependants can be included for €25,000 per person per year. This structure helps families manage their international assets and reporting consistently.
A common approach for global families includes:
- Establishing residence through the Golden Visa
- Relocating tax residence and electing the Flat Tax once settled
- Applying for long-term EU residence after five years
- Considering citizenship by naturalisation after ten years of residence, subject to eligibility
This sequence is used by individuals seeking stability and legal clarity for family and succession planning.
Example: Coordinating both frameworks
A Singapore-based investor invests €500,000 in an Italian technology company and secures a Golden Visa. After two years, the investor relocates permanently to Milan, becomes tax resident, and elects the Flat Tax at €200,000 per year, adding one dependent for €25,000. Their foreign income is covered by the fixed levy, while Italian-source earnings are taxed under ordinary rates. The investor maintains residence and compliance, renewing the permit and retaining both residence and fiscal predictability.
Why Italy’s framework remains consistent in 2025
Several European programs have changed or closed. Italy’s system has remained active under the same investment categories and with the updated Flat Tax rate. Oversight is centralised, and approval criteria are publicly available.
This consistency supports investors and families who prefer well-defined procedures and long-term legal continuity. Italy’s approach continues to attract individuals who value structure and transparency in both immigration and taxation.
How Italy compares with other EU regimes
Other European jurisdictions have offered similar incentives but often linked them to real estate or temporary programs. Italy’s model is broader in scope. It channels investment into businesses and public-interest projects, and its tax framework applies across all foreign-source income categories rather than to specific assets.
By separating residence from taxation, Italy avoids the volatility that has affected other programs while still encouraging international participation in its economy.
Common misconceptions
Is the Golden Visa a tax incentive?
No. It provides residence rights and mobility but does not include tax advantages.
Does the Flat Tax require investment?
No. It requires relocation of tax residence and meeting non-residency conditions.
Can both be used together?
Yes. They are separate frameworks that can operate together for investors who qualify under both sets of rules.
Is real estate investment eligible for the Golden Visa?
No. Real estate purchases do not qualify as a route under the program.
Do either lead automatically to citizenship?
No. Only long-term residence duration counts toward naturalisation eligibility.
Practical summary
The Italian Golden Visa and Flat Tax regime are two separate tools designed for different objectives. The first defines how non-EU investors can live in Italy; the second defines how their global income is treated once resident. Their continued operation in 2025 confirms Italy’s preference for steady, regulated pathways that balance openness with oversight.