As part of the 2026–2028 budget plan the Italian Government has released the draft 2026 Budget Law for submission to Parliament.
Under the proposal, the substitute tax on foreign-sourced income for new residents will be increased from €200,000 to €300,000 starting in 2026.
The annual flat tax would therefore amount to:
- €300,000 for the main taxpayer
- €50,000 for each qualifying family member
This adjustment follows the doubling of the levy to €200,000 in August 2024.
The draft legislation also includes a grandfathering provision, exempting individuals who transferred their tax residence to Italy before 1 January 2026 from the new rates.
Should you need more information about this we would be happy to assist.
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