Italy

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.

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.

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.

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.

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).