Southern Europe · Europe

Italy

54moderate

Overall Score

Italy is a Southern Europe jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 24%. The jurisdiction offers a digital nomad visa for qualifying individuals.

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Corporate Tax

24%

Personal Income Tax

43%

Capital Gains

26%

VAT / GST

22%

Overview

Key Data

Taxation

Personal Income Tax (max)43%

Personal Income Tax (min)23%

Corporate Tax Rate24%

Capital Gains Tax26%

VAT / GST22%

Dividend Tax Rate26%

Withholding Tax26%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesYes

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaNo

Retirement VisaYes

Investment VisaYes

EU MemberYes

Schengen AreaYes

EU PassportYes

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index63/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easegood

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Italy is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

New-resident flat tax: €100,000/yr on all foreign income for up to 15 years. Pensioners from abroad: 7% flat in qualifying southern regions. Digital Nomad Visa (2022). Corporate: 24% IRES + 3.9% IRAP. Startup flat-rate regime (forfettario) for small earners: 15% on gross.

Company Setup & Business Taxation

The standard corporate income tax rate is 24%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Account opening in Italy can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Italy is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Italy ranks highest for High Net Worth Individual and Digital Nomad. It offers a reasonable proposition for high net worth individual (score: 58/100). It offers a reasonable proposition for digital nomad (score: 55/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.