Tax Benefits for Foreigners Moving to Italy: Complete Guide 2025

Main square of Atri, beautiful and historic place, an hidden gem of Abruzzo region.

Italy is increasingly becoming the ideal destination for people moving from abroad in search of quality of life, natural beauty, and excellent real estate opportunities. What many don’t know is that the country also offers significant tax benefits for foreigners moving to Italy. These advantages make relocation even more convenient, whether you work, receive a pension, or want to invest in the Italian property market.

In this comprehensive guide, we explain in detail all the major tax incentives available in 2025 for new residents.

1. Flat Tax for New Residents: the €100,000 Regime

The “New Residents” tax regime allows you to pay a fixed annual tax of €100,000 on all income generated outside Italy, regardless of the amount.

How it works

• A fixed substitute tax for 15 years.
• Available to individuals who have not been Italian tax residents for at least 9 of the previous 10 years.
• Ideal for individuals with high international income.

Main advantages

• Reduced and simplified taxation.
• No taxation on inheritance or donations relating to assets held abroad.
• No need to declare foreign income in detail.

2. 7% Flat Tax for Foreign Pensioners

Another major benefit applies to foreign retirees who relocate to a small Italian municipality with fewer than 20,000 inhabitants — such as many beautiful towns in Abruzzo.

How it works

• 7% tax on all foreign income.
• Valid for 10 years.
• Perfect for those seeking a peaceful lifestyle near the coast.

Why it is convenient

• One of the lowest tax rates in Europe for foreign retirees.
• Ideal for living in scenic, quiet, coastal or rural areas.
• Simple to apply and maintain.

3. Incentives for Highly Qualified Workers

Those moving to Italy for work can benefit from the “Impatrio” regime, designed to attract professionals, researchers, and entrepreneurs.

Advantages

• 70%–90% tax reduction on income produced in Italy.
• Valid for 5 years, extendable up to 10 under certain conditions.

Who it is designed for

• Skilled employees.
• Self-employed professionals and entrepreneurs.
• Managers, professors, and researchers.

4. No Capital Gains Tax on Property Sales After 5 Years

If you purchase a home in Italy and sell it after at least 5 years, the capital gain is not taxed. This is a major benefit for foreign investors interested in the Italian real estate market.

5. “Primary Residence” Benefits Also Apply to Foreigners

Foreigners who transfer their residency to Italy can access the same benefits as Italian citizens when buying their first home.

The main advantages

• Reduced 2% registration tax.
• Fixed mortgage and cadastral taxes at €50 each.
• Significant savings on mortgages and notary fees.

6. Why Abruzzo Is One of the Best Regions to Benefit from These Incentives

Abruzzo is one of the most loved regions among foreigners thanks to its perfect balance between sea, hills, and mountains. It offers:

• Many towns under 20,000 inhabitants, ideal for the 7% Flat Tax.
• Sea-view properties at competitive prices.
• High quality of life and excellent safety.
• A convenient international airport in Pescara.
• Strong potential for real estate investment and rental income.

7. How We at Immobil Oikos Can Help You

Our agency assists clients from all over the world who want to move to Italy or invest in a second home. We offer:

• Complete real estate consulting in English.
• Support through expert tax consultants to find the best regime for your situation.
• Assistance with renovation and property management.
• Turnkey service tailored to your needs.

Conclusion

Moving to Italy today means accessing important tax benefits for foreigners while enjoying one of the highest qualities of life in the world. If you are considering relocating or investing in Abruzzo, contact us for a personalized consultation.