Special Tax Regime
(STR) for High-Net-
Worth Individuals
Everything you need to know about Italy’s Non Dom special tax regime
Italy is a country desired for its scenic locations, rich history and culture, and superior gastronomy.
However, one deterrent for high-net-worth individuals and Golden Visa investors looking to move to Italy has been the country’s extraordinarily high tax rates.
Recently, Italy has seen the light! The country has introduced the €200,000 Flat Tax Regime, otherwise known as the Special Tax Regime (STR) for High-Net-Worth Individuals.
Under this regime, high-net-worth foreign individuals who relocate to and establish their tax residency in Italy can opt to pay a €200,000 flat tax per year on all of their foreign earned income, in lieu of standard Italian tax rates. As an added benefit, individuals may extend the lump sum tax benefits to your family members, too — by paying an additional annual flat tax of just €25,000 per family member.
Benefits are applicable for a full 15 years from the point at which you register for the regime.
Qualifying under the Non Dom tax regime gives you
the opportunity to avoid the following taxes and tax
filing obligations for foreign income:
The wealth tax on investments held abroad, saving you 0.2% per year on the value of financial investments, and 0.76% p.a. on the original cost of hospitality properties held abroad.
The Italian Inheritance and Gift Tax (varying from 4% to 8%, depending on the degree of kinship you share with the deceased/giver).
The filing of annual declarations pertaining to your investments held abroad – provided that you pay the relevant flat tax in full, and in a timely manner.
IMPORTANT NOTE: Any Italian-sourced income earned as an Italian Non Dom taxpayer will be treated as ordinary Italian income, and taxed accordingly. In addition, capital gains realised on foreign investments, and income derived from the sale of qualified foreign shareholdings, are subject to ordinary Italian taxation during the first five years of your qualifying for the Italian Non Dom tax status.
How do I Become a Tax
Resident of Italy in 2025?
Legal residency and tax
residency are distinct.
However, legal residency status tends to lead to tax residency. Unless you acquire a job in Italy or marry an Italian, you’ll likely have to apply for one of the following two legal residency programs:
| Residency Program | Italian Elective Residence aka Italy’s Retirement Visa |
Italian Investor Visa aka Italian Golden Visa |
|---|---|---|
| Investment Required | No | Yes |
| Passive Income Required | Yes | No |
| Minimum Annual Stay Requirement | Yes (183+ days per year or 184+ days in a leap year) |
None (0 days per year) |
Discover the Italian Golden Visa Investment Options
For more detailed information, we urge you to seek advice from a leading Italian tax lawyer specialising in the
Italian Non Dom Special Tax Regime (STR) for High-Net-Worth Individuals.
LEGAL DISCLAIMER:
The above content does not constitute immigration or tax advice, and is presented purely as general information on the Italian HNWI Tax Regime. Due to the frequently changing nature of tax regulations, the below information, deemed accurate at the time of publication, is by no means guaranteed.
Reading this article does not imply the creation of a client-attorney relationship, and neither the publishers nor any of our associates will be held liable for any losses suffered, either directly or indirectly, as a result of reliance on this information.
The Special Tax Regime
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