Retiring in Portugal: The Updated Guide for 2025
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Italy Tax Incentives for New Residents
Every tax resident in Italy is required to pay income tax on their worldwide earnings. While the tax percentage that applies to the value of foreign financial assets is 0.2 percent, this is 0.76 percent for the value of foreign real estate.
In order to attract high-net-worth individuals, Italy offers an alternative tax structure. This optional tax regime enables new residents to replace regular taxation on all of their income earned outside of Italian territory with a €200,000 lump sum payment once a year.
You can apply for this tax regime if you’re ready to move your tax residence to Italy. The first condition is that you’ve not been resident in Italy for at least nine out of the last 10 years.
The €200,000 substitute tax is due in full by the following June 30th of each year. By paying an extra €25,000 for each dependent, you can also include your family members under the plan.
Once granted, the regime is valid for 15 years, and you can opt out at any time. If the annual lump payment is not paid, in whole or in part, the status will immediately lapse.
Opening a Bank Account in Italy
During the application process, you are required to open a bank account in Italy. Depending on the bank you choose, you can either do it remotely or in person. In both cases, the bank will ask you to submit these documents:
- Your passport
- Italian Fiscal Code (Tax Number)
- Proof of address
- Financial stability
Alternatives to Italy Golden Visa
An Italy investor visa is a good choice if you want to apply for European residency quickly. The program is fast and straightforward, with different investment options.
However, if your motivations include getting citizenship in an EU country in a shorter time and without any stay requirements, there are other options such as the Portugal Golden Visa. It’s a scheme that offers various fund investment options, which Italy Golden Visa doesn’t. Also, Portugal Golden Visa can lead to citizenship if you stay in Portugal for seven days on average every year.
Another option is Greece Golden Visa. Although it also requires you to stay in Greece for a minimum of seven years to become eligible for citizenship, it offers a real estate acquisition route starting from €250,000.
