English 
French It’s been two years of policy back-and-forth for expats and retirees moving to Italy: the Italian government powered down the impatriati tax regime for professionals, then imposed sudden and dramatic changes to citizenship law. Now, Italy is once again adjusting the goalposts for foreign residents. As reported by the Financial Times, Rome’s draft 2026 budget includes a flat tax hike. This would bring the special tax charge for high-net-worth individuals (HNWIs) from €200,000 to €300,000 per year: a 50 per cent increase, and the second major change in as many years.
Introduced in 2016 to attract wealthy residents and reverse the country’s long “brain drain”, the scheme allows new arrivals (or returning Italians who’ve lived abroad for nine years) to pay a fixed annual tax on all foreign income for up to 15 years. The policy quickly made Milan a magnet for the global elite, from financiers fleeing London’s tightening non-dom regime to tech entrepreneurs seeking sunnier tax residency.
But the flat tax has always been controversial at home. Critics blame it for rising property prices in Milan and widening inequality. The Meloni government now frames the increase as part of a wider rebalancing act — cutting taxes for middle-income workers while ensuring the ultra-rich “contribute their fair share”.
With Italy’s growth forecast stuck below one per cent and elections due in 2027, the move is politically motivated. Only a few hundred wealthy individuals have taken up the scheme, and a €100,000 hike (not retroactive, so only impacting new arrivals) would raise very little money for the state’s coffers (arguably, it may deter newcomers and have a negative net effect).
The real danger stemming from the proposed flat tax hike is to country’s reputation for policy volatility. For many globally mobile families requiring years to plan a move, the issue is less the headline figure and more the message it sends: that no incentive is ever safe from revision. We have recently wondered if the 7% tax incentive would survive political scrutiny.
Flat Tax Hike: What People Are Saying
Commenters are already out in droves, supporting or criticizing the policy change:
- One reader shrugged: “If you can afford to move to Italy to pay ‘only’ €300,000 a year in tax, you can afford the increase.”
- Another cautioned: “It’s not about sympathy for the rich — it’s about predictability. Tax policy shouldn’t be a political football.”
- Others were more sardonic: “Terrible news. How will the rich survive?” and “The rich will be like flies moving to the next cowpat.”
Even among the well-off, the consensus seems to be that €300,000 remains a bargain for Mediterranean life, but the constant tinkering makes long-term planning harder.
A Country That Can’t Keep Still
Italy’s appeal remains strong: climate, culture, and lifestyle are assets no spreadsheet can quantify. Yet Rome’s habit of rewriting its own rules risks undermining the credibility of every incentive it offers — from tax breaks to citizenship paths. For would-be residents, the lesson is clear: come for the lifestyle, not the stability.
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