Italy to raise flat tax on super rich to 300,000 euros, officials say

Italy plans to raise by 50% the rate of a flat tax designed to attract wealthy individuals, as part of measures to fund its 2026-2028 budget plan, two officials close to the matter told Reuters.

Italy plans to raise by 50% the rate of a flat tax designed to attract wealthy individuals, as part of measures to fund its 2026-2028 budget plan, two officials close to the matter told Reuters. The government intends to increase the annual levy to 300,000 euros from 200,000 euros on foreign-sourced income earned by individuals who transfer their tax residence to Italy, the officials said.

The move, included in the draft 2026 budget law, marks the second hike in two years. First introduced in 2017 by Prime Minister Matteo Renzi's centre-left government to attract wealthy foreigners, the levy was doubled to 200,000 in 2024 by Prime Minister Giorgia Meloni's conservative administration, with no retroactive effect.

Nearly 1,500 individuals took advantage of Italy's flat tax regime in 2023, according to June data from the Court of Auditors. The measure generated 315 million euros in revenue for the state between 2020 and 2023. Portuguese soccer star Cristiano Ronaldo, who played for Italy's Serie A club Juventus between 2018 and 2021, was among the high-profile beneficiaries of Italy's flat tax regime.

($1 = 0.8548 euros)