Europe · Mediterranean

Italy

The prestige destination of the Mediterranean — and the one that has spent 2024–2026 systematically pricing out the merely wealthy while shutting the door on tens of millions of would-be citizens by descent.

Last verified July 2026185 visa-free destinations

Tax position

Income tax (top): 43% national, plus regional (1.23%–3.33%) and municipal (0%–0.9%) surcharges — roughly 47.2% effective top rate
Capital gains: 26% flat on most financial gains; 12.5% on qualifying government bonds
Wealth tax: none domestically; IVIE on foreign real estate and IVAFE on foreign financial assets apply to ordinary residents (both disapplied under the Art. 24-bis flat tax)
Inheritance tax: 4% for spouse and direct descendants above a EUR 1m per-heir allowance; 6% for siblings and relatives; 8% for others — among the lowest in Western Europe
Special regime: Art. 24-bis flat tax for new residents: EUR 300,000/year from 1 January 2026 (EUR 50,000 per family member). Art. 24-ter: 7% for foreign pensioners in the South. Impatriate regime: 50% exemption capped at EUR 600,000 of income
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: Yes — leaving has a cost
CRS: Participating