A growing number of entrepreneurs, investors and families are choosing Italy as a place to live, for all or part of the year. Relocating is also a legal process: it affects residence, tax status, assets, family arrangements and succession. Planning ahead prevents practical decisions, such as the moving date or the name in which a property is bought, from having unintended consequences.

Registered residence and tax residence

Registered residence (residenza anagrafica) is obtained by registering with the municipality where you habitually live. Tax residence follows its own rules, set out in Article 2 of the Italian Income Tax Code (TUIR) as reformed from 2024. An individual is treated as tax resident if, for most of the tax year, they have their residence or their domicile in Italy, domicile now meaning the place where their personal and family relationships are mainly centred, or if they are physically present in the country. Registration with the municipality creates a presumption of residence that can be rebutted.

Double tax treaties may change the outcome where a person is resident in two countries under domestic rules. The timing of the move and the way ties with the country of origin are managed should therefore be planned with tax advisers in both countries.

Entry and residence permits

EU citizens have a right of residence and, after an initial period, must register with the municipality and show that they meet the statutory requirements. Non-EU nationals need an entry visa consistent with the purpose of their stay, followed by a residence permit. Common options for those who do not intend to work in Italy include the elective residence visa (residenza elettiva), which requires stable and adequate financial resources. For qualifying investments there is a dedicated investor visa (Article 26-bis of Legislative Decree 286/1998). Requirements and minimum amounts should be checked at the time of application.

The new residents regime

Article 24-bis of the TUIR, often referred to as the Italian flat tax for new residents, allows individuals who move their tax residence to Italy, and who have not been resident in Italy for at least nine of the previous ten tax years, to elect to pay an annual lump-sum substitute tax on their foreign-source income. The regime lasts for up to fifteen years, can be extended to family members for an additional charge and, for foreign assets, exempts the taxpayer from certain reporting obligations and from Italian inheritance and gift tax.

Italian-source income remains taxed under the ordinary rules, and certain gains on substantial shareholdings are excluded during the first years. The amount of the lump-sum tax has been increased more than once in recent years, with different rules depending on when the move takes place, so it should always be checked against current legislation. An advance ruling can be requested from the Italian Revenue Agency. Whether the regime is worthwhile is a tax question for qualified tax advisers; the lawyer’s role is to align it with the other aspects of the relocation.

Property, family and succession

Buying a home in Italy requires checks on title, planning and cadastral compliance, restrictions and mortgages. The purchase is completed by notarial deed, usually preceded by a preliminary contract (contratto preliminare). For non-EU nationals, the reciprocity requirement should also be verified.

For families, the property regime between spouses in cross-border situations is governed by EU Regulation 2016/1103. For succession, EU Regulation 650/2012 provides that, as a general rule, the applicable law is that of the State where the deceased was habitually resident at death, unless they chose the law of their nationality. Someone who settles permanently in Italy may therefore find that Italian law applies to their estate, including forced heirship rules that reserve shares for close family members (legittima). A deliberate choice of law in a will is often an essential planning tool. The European Certificate of Succession then simplifies the administration of the estate in EU countries applying the Regulation.

Coordination, and when to seek legal advice

Relocating to Italy involves several advisers: lawyers, tax advisers, notaries and professionals in the home country. Italian counsel adds value by bringing these elements together in a single plan:

  • the timing of the move, and consistency between registered, family and economic circumstances;
  • selecting and checking property, with appropriate contractual protections;
  • organising assets and shareholdings, including through holding companies where appropriate;
  • wills, choice of applicable law and succession planning.

It is best to start the conversation several months before the move, while all options remain open. Matters governed by the law of other countries should be reviewed with lawyers qualified in those jurisdictions.

This article is for general information only and does not constitute legal advice.