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Tax Guide for Expats in Italy
Technical Guides • Tax Guide for Expats in Italy
Tax Guide for Expats in Italy
Understanding Italian Tax Rules for Foreign Residents
Make Sense of Italy’s Tax System Before You Move
Italy remains one of Europe’s most desirable destinations for expats - but the country’s tax system can be complex.
Our 2025 Tax Guide for Expats in Italy explains how residence is defined, what taxes apply to different income types, and how to manage your affairs efficiently when living, working, or retiring there.
Whether you’re already in Italy or planning your relocation, this guide helps you avoid costly mistakes and stay compliant with Italian and international tax rules.
What You’ll Learn
- How Italian tax residency works
Understand the criteria that determine when you become a tax resident under Italian law — and how to avoid dual residency conflicts. - Income tax in Italy
Learn about Italy’s progressive IRPEF rates, regional and municipal taxes, and how your employment, business, and investment income are treated. - Capital gains, dividends, and interest
Explore how different income sources are taxed — including how tax treaties can reduce rates for non-residents. - Taxes on property and assets abroad
Discover how IVIE and IVAFE apply to property and financial holdings outside Italy, and how to claim credit for taxes paid abroad. - Key compliance steps
Find out what’s required when registering with the Italian population registry (Anagrafe), moving assets into or out of Italy, and filing returns.
Who This Guide Is For
The Tax Guide for Expats in Italy is written for:
- British nationals moving to or already living in Italy who want clarity on how their income and assets will be taxed.
- Professionals, retirees, and remote workers establishing residence in Italy and needing to manage dual-country reporting.
- Property owners and investors with assets in Italy or abroad seeking to understand their annual tax obligations.
- Advisers or family offices supporting clients relocating under Italian or EU residency programs.
If you’re navigating international income, pensions, or real estate across borders, this guide is your essential starting point.
FAQs
You’re considered tax resident if, for more than 183 days in a year, you’re registered in the Anagrafe, or your economic and personal centre of interests is in Italy.
Yes - but only on income sourced in Italy, such as local employment, property rentals, or business activity conducted in the country.
Income is taxed progressively from 23% to 43%, with additional regional (up to 3.33%) and municipal (up to 0.9%) surcharges depending on where you live.
Yes. Since 2019, both are generally subject to a 26% flat tax, though reduced rates may apply under tax treaties.
These are wealth taxes on foreign property (IVIE, 0.76%) and foreign financial assets (IVAFE, 0.2%), payable annually if you’re an Italian tax resident.
You’ll need to deregister from the Italian Anagrafe and may need to join AIRE (Registry of Italians Resident Abroad). Failing to do so can leave you unintentionally classed as Italian tax resident.
About Hoxton Wealth
Founded in 2018, Hoxton Wealth is one of the fastest-growing independent advisory groups, with offices in London, Sydney, Austin, Cape Town, New Jersey, Dubai, and Larnaca.
We specialise in helping internationally mobile professionals, expats, and retirees make informed financial and tax decisions across borders.
Our UK-qualified team provides strategic guidance on tax planning, investment structuring, and cross-border compliance - ensuring your move to Italy is financially smooth and tax-efficient.
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Get your copy of the 2025 Tax Guide for Expats in Italy and gain clarity on the Italian tax system before you relocate.
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