Bilingual English–Italian experts based in Italy since 2020 · 500+ families supported
Updated 2026
French-speaking experts
Taxation in Italy: everything French nationals need to know
Understanding the Italian tax system is essential before relocating, investing, or retiring in Italy. IRPEF, flat tax, expatriate regime, property taxes... our French-speaking experts guide you at every step.
La Italian flat tax: up to €200,000 in annual lump-sum tax
Introduced in 2017, the flat tax for new residents is one of the most attractive tax regimes in Europe. It allows the ordinary taxation on foreign income to be replaced by a fixed annual lump sum, regardless of the actual amount of that income.
Since the reform of August 2024, this lump sum has been raised to €200,000 per year (compared to €100,000 previously). The regime is valid for a maximum period of 15 years. Family members may also benefit from it, at an additional cost of €25,000 per person.
For retirees, the 7% regime in the Mezzogiorno offers an even more accessible alternative: a flat-rate tax on all foreign income for 9 years, upon settling in a rural municipality in southern Italy.
7 %
Flat tax for retirees
On foreign income for 9 years in the Mezzogiorno
200K€
Flat tax for new residents
Annual lump sum on foreign income, valid for up to 15 years
50 %
Inbound workers tax regime
Reduction on employment income in Italy for 5 years
4 %
Inheritance tax
In direct line with €1M allowance per heir
Your questions
Questions fréquentes sur la fiscalité en Italie
Our French-speaking experts answer the most common questions from people moving to or investing in Italy.
How does taxation work in Italy for a French citizen?
A French citizen who transfers their tax residence to Italy is taxed on their worldwide income through the IRPEF, Italy's progressive income tax with a marginal rate of 43% above €50,000 of annual income. However, several highly advantageous special regimes exist: the flat tax for new residents (annual lump sum of €200,000), the impatriate regime (50% tax reduction on employment income), and the 7% flat tax for retirees relocating to the Mezzogiorno. The Franco-Italian tax treaty prevents double taxation.
What is the Italian flat tax and who can benefit from it?
The Italian flat tax for new residents allows the ordinary taxation on foreign-source income to be replaced by a fixed annual lump sum of €200,000 (since August 2024), regardless of the actual amount of that income. It is available to individuals who have not been tax residents in Italy for at least 9 of the last 10 years. It is valid for a maximum of 15 years. Income from Italian sources remains subject to the ordinary regime. This is a particularly attractive regime for business owners, investors, and retirees with significant foreign income.
What is the 7% flat tax for retirees in Italy?
The 7% regime allows foreign retirees — including French retirees — to pay a flat tax of just 7% on all their foreign-source income (including their pension) for 9 years. To qualify, the retiree must relocate to a municipality of fewer than 20,000 inhabitants in one of the eligible Mezzogiorno regions: Sicily, Sardinia, Calabria, Campania, Basilicata, Abruzzo, Molise, or Puglia. They must not have been a tax resident in Italy during the previous 5 years. It is one of the most attractive retirement tax regimes in Europe.
Do French citizens need to declare their French assets when living in Italy?
Yes. A tax resident in Italy must annually declare assets held abroad (including in France) in the RW section of their Italian tax return (modello Redditi). Two wealth taxes then apply: the IVIE on foreign real estate (1.06% since 2024) and the IVAFE on foreign financial assets (0.2%). Tax credits partially offset the double taxation under the Franco-Italian tax treaty. Beneficiaries of the flat tax for new residents are generally exempt from these taxes on their foreign assets.
What are the Italian taxes on property income?
Rental income in Italy is subject to the IRPEF at progressive rates, or optionally to the cedolare secca, a simplified flat-rate regime at 21% (or 10% for regulated-rent contracts). For non-resident owners, only Italian-source income is taxable in Italy. Local taxes (IMU for property tax, TARI for waste collection) are added to income taxes. Our dedicated guide to property taxes in Italy covers all of these charges in detail.
How do you obtain the Italian tax code (codice fiscale)?
The Italian tax code (codice fiscale) is essential for any administrative, financial, or property-related procedure in Italy. It can be obtained from the Italian consulate in your country of residence, directly at an Agenzia delle Entrate office in Italy, or through an authorised representative. The process is free of charge and generally takes a few days to a few weeks depending on the case. Our detailed guide explains the steps one by one, including the documents required and the online alternatives available.
Is Italian taxation more advantageous than French taxation?
This depends entirely on your personal situation. Without a special regime, the Italian IRPEF (43% above €50,000) is comparable to French taxation, or even slightly heavier when regional surcharges are taken into account. On the other hand, Italian inheritance taxes are far more favourable (4% with a €1 million allowance per child, compared to 45% in France above €1.8 million). And for retirees, entrepreneurs, or wealthy new residents, Italy's special regimes (flat tax, 7%, impatriate) offer a level of tax efficiency that has no equivalent in France. A personalised analysis is essential to properly assess the real benefit for your specific situation.