Analysis · Article 24-bis TUIR — Regime for new high-net-worth residents

Italian lump-sum tax regime:
article 24-bis of the TUIR and the regime for new high-net-worth residents

Since the Italian Finance Act for 2026 (art. 1), article 24-bis of the TUIR imposes a lump sum of EUR 300,000 per year on new electors as from 1 January 2026 — after an initial increase to EUR 200,000 introduced by decree-law no. 113 of 9 August 2024. Three tiers now coexist: EUR 100,000 for those who elected before 9 August 2024, EUR 200,000 for those who elected between 10 August 2024 and 31 December 2025, EUR 300,000 for new electors since 1 January 2026 — each tier being locked in for the remaining term of the election (ratchet effect). In return: substitute taxation of all foreign-source income for fifteen non-renewable years. The firm describes here the precise architecture of the regime — eligibility, covered scope, exclusions, interaction with the France-Italy tax treaty of 5 October 1989 and with the French exit tax of article 167 bis of the French Tax Code.

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Analysis by Maître Jonathan Bensaid · Tax lawyer · Paris · Geneva · Marseille · Cannes · Lisbon
— In brief
Cardinal rule
Art. 24-bis TUIR (D.P.R. 917/1986), amended by D.L. 113/2024 then by the Italian Finance Act 2026 (art. 1)
Annual lump sum
EUR 300,000 (new electors since 1 Jan. 2026) — EUR 200,000 (electors between 10 Aug. 2024 and 31 Dec. 2025) — EUR 100,000 (electors before 9 Aug. 2024)
Family extension
EUR 50,000 per member since 1 Jan. 2026 (EUR 25,000 previously) — spouse, children, dependent parents
Eligibility
Not an Italian tax resident for 9 of the last 10 years — any nationality
Duration
15 years, non-renewable — voluntary exit or automatic exit on non-payment
Scope
Foreign-source income only — exception for capital gains on qualified shareholdings in the first 5 years
— 01

Why the Italian 24-bis remains the European benchmark for global private wealth

Introduced by the legge di bilancio 2017 in the wake of the abolition of the British non-dom status, article 24-bis of the TUIR opens to new Italian residents — on election and subject to conditions — the option to subject all their foreign-source income to a substitute lump-sum taxation. The regime affects neither Italian-source income, taxed at ordinary rates (23% to 43%), nor local taxation, nor any applicable IRAP. Within its scope, however, it neutralises IRPEF, Italian withholding taxes on foreign income, and Italian taxation on extraterritorial wealth (IVIE, IVAFE).

The decree-law no. 113 of 9 August 2024, converted by the law of 7 October 2024, brought about a first change of paradigm: the lump sum rose from EUR 100,000 to EUR 200,000 per year for any election made as from 10 August 2024. The Italian Finance Act for 2026 (art. 1) brought about a second increase, raising the lump sum to EUR 300,000 per year for any election made as from 1 January 2026, and simultaneously doubling the family extension to EUR 50,000 per member. At each tier, taxpayers already within the regime keep their historical ceiling — an acquired right expressly preserved by the Italian legislature (grandfathering). Since 2026, this layering produces a three-speed taxation for new high-net-worth residents, without however calling into question the structural appeal of the regime compared with competing regimes (Swiss lump sum under art. 14 LIFD and 6 LHID, the now-restricted Portuguese NHR, the abolished British res non-dom).

At EUR 300,000 per year for fifteen years, the entry cost amounts to EUR 4.5 million in total — a figure that is rational only for asset bases generating annual foreign income above roughly EUR 1.2 to 1.5 million. For this profile — UHNWI, exiting founders, private equity retirees, elite athletes, heirs to international financial capital — the lump sum removes the complexity of worldwide taxation (dividends, interest, capital gains, passive income) in favour of a capped and predictable cost. The family extension to EUR 50,000 per person (since 1 January 2026) remains a lever for wealth family offices, even if the overall entry ticket has become significantly heavier.

The firm nonetheless considers that the actual effectiveness of the 24-bis depends as much on the Italian election itself as on a clean exit from French residence: the genuine nature of the transfer, treatment of the exit tax of article 167 bis of the French Tax Code, interaction with the France-Italy treaty of 5 October 1989, anticipation of post-departure audits. An Italian election poorly documented on the French side exposes the taxpayer to a re-characterisation as dual residence — which cancels the expected saving and triggers a criminal risk.

— 02

Five technical pillars of article 24-bis of the TUIR

Beyond the symbolic figure of EUR 300,000, the regime combines five components that must be mastered to calibrate a transfer operation.

1. The lump sum — EUR 300K since 2026, EUR 200K and EUR 100K for acquired rights

Since 1 January 2026, any first election triggers an annual lump sum of EUR 300,000 (Italian Finance Act for 2026, art. 1) in substitution for IRPEF, its surcharges, Italian withholding taxes on covered foreign income, and Italian taxes on extraterritorial wealth (IVIE, IVAFE). Taxpayers who elected between 10 August 2024 and 31 December 2025 keep their historical ceiling of EUR 200,000, and those who elected before 9 August 2024 keep the initial rate of EUR 100,000 — legal certainty expressly preserved at each tier by the Italian legislature (anti-retroactive ratchet effect). The lump sum is due whether or not there is foreign income in the year concerned: it is an entry fee, not a tax on actual income.

2. Eligibility — not a resident for 9 of the last 10 years

Any individual may elect — whatever their nationality, Italians included — who has not been an Italian tax resident for at least nine of the ten years preceding the transfer (art. 24-bis para. 1 TUIR). No minimum-wealth condition, no activity requirement, no investment required. Eligibility is assessed within the meaning of article 2 para. 2 TUIR (registration on the AIRE register, domicile, Italian civil residence). A prior interpello with the Agenzia delle Entrate secures the analysis, particularly useful where there are partial Italian antecedents.

3. The scope — covered foreign income, 5-year exclusion of qualified shareholdings

Covered by the lump sum: foreign dividends, foreign interest, foreign capital gains, foreign rental income, foreign pensions, income from employment carried out abroad. Excluded and taxed at the ordinary rate of 26%: capital gains on qualified shareholdings — above 25% of the capital for an unlisted company or 2% for a listed company — disposed of during the first five years of Italian residence. This anti-quick-sale clause targets executives who would transfer their domicile just before disposing of a majority shareholding. Italian-source income remains, by definition, taxed at ordinary rates.

4. The duration — 15 non-renewable years and selective country exit

The regime applies for fifteen tax years, as from the year of acquisition of Italian residence, with no possible renewal. Exit occurs (i) on expiry of the term, (ii) on express waiver by the taxpayer, (iii) automatically in the event of non-payment of the lump sum by the 30 June deadline. A notable feature: from the election onward, the taxpayer may selectively exclude certain States from the scope of the lump sum (cherry-picking) — useful to preserve the application of specific tax treaties, for example where US income must retain the benefit of the foreign tax credit or avoid the saving clause of the US-Italy treaty.

5. The procedure — Modello Redditi PF, interpello, payment before 30 June

The election is exercised in the annual Modello Redditi Persone Fisiche return, in the NR section. The provvedimento of the director of the Agenzia delle Entrate no. 47060/2017 of 8 March 2017 sets the terms. The prior ruling (interpello probatorio art. 11 para. 1 lett. b of L. 212/2000) allows eligibility to be validated before the transfer — a response time of 120 days, silence meaning acceptance. The lump sum is payable each year before 30 June, in a single instalment. No Italian withholding tax applies to covered foreign income; tax treaties remain available for income excluded from the lump sum or for selectively waived countries.

— 03

Bensaid's support for a France → Italy transfer

The firm structures transfer operations towards the article 24-bis regime in a four-stage sequence. First, the pre-departure analysis: mapping of the assets (real estate, financial, professional), characterisation of the expected foreign income, simulation of the total cost over fifteen years, identification of the qualified shareholdings subject to the five-year exclusion, computation of the exit tax within the meaning of article 167 bis of the French Tax Code (applicable above EUR 800,000 of substantial shareholdings or 50% of rights in the profits).

Second, securing the Italian side through a local partner — avvocato tributarista and commercialista in Milan or Rome — to prepare the interpello with the Agenzia delle Entrate, document the absence of Italian residence over the reference decade, and calibrate any list of countries excluded from the lump sum. The firm coordinates the process to ensure consistency between the Italian filing position and the French exit filings.

Third, the exit-tax audit and French exit: form no. 2074-ETD, choice between immediate payment and payment deferral (as of right for a transfer to an EU Member State, which Italy is), any guarantees, timetable of eventual relief (relief of the tax on unrealised gains after two years of holding, five years where the overall value of the securities exceeds EUR 2.57 million). Fourth, the transfer timetable: date of switch of civil residence, removal from the French register of French nationals abroad, registration with the competent Italian consulate, effective transfer of the permanent home within the meaning of article 4 of the France-Italy treaty of 5 October 1989.

The firm's doctrine is that of verifiable consistency: a transfer is solid only if each of its markers — civil, social, economic, real-estate, family — converges towards the new jurisdiction. A 24-bis election activated without an effective switch exposes the taxpayer to a re-characterisation as dual residence, resolved by the tie-breaker rules of article 4 of the treaty, with a return to worldwide taxation in France and a criminal risk on the ground of tax fraud (art. 1741 of the French Tax Code).

— Frequently asked questions

What article 24-bis of the TUIR changes for your assets

Am I eligible for the Italian lump sum if I have had occasional activity in Italy?

Eligibility requires the absence of Italian tax residence for at least nine of the ten years preceding the transfer (art. 24-bis para. 1 TUIR). An occasional stay — a business trip, ownership of a second home — does not in itself entail tax residence within the meaning of article 2 para. 2 TUIR, which requires registration on the AIRE register, domicile or Italian civil residence for more than 183 days. Where the antecedent is ambiguous, the interpello probatorio with the Agenzia delle Entrate provides prior certainty.

How is the EUR 300,000 lump sum calculated?

It is not a calculation but a fixed annual amount, due whatever the actual foreign income. For elections made as from 1 January 2026: EUR 300,000 per year (Italian Finance Act for 2026, art. 1). For elections made between 10 August 2024 and 31 December 2025: EUR 200,000 per year. For elections before 9 August 2024: EUR 100,000 per year. Each ceiling is kept until the end of the fifteen years (ratchet effect). Since 1 January 2026, each attached family member — spouse, children, dependent parents within the meaning of the Italian codice civile — adds EUR 50,000 per person per year (EUR 25,000 previously). Payment is made in a single instalment before 30 June. Failure to pay entails automatic forfeiture and a return to the ordinary regime.

Does my real estate located in France remain taxed in France?

Yes. The France-Italy treaty of 5 October 1989 reserves to the State of situs the taxation of real-estate income (art. 6) and real-estate capital gains (art. 13 §1). French rental income and gains on the sale of a French property are taxed in France under the ordinary regime — including the 25% withholding tax for non-residents and the social levies (CSG-CRDS at an overall rate of 17.2%, reduced to 7.5% for EU/EEA/Swiss residents affiliated to a European social-security scheme other than French). French IFI wealth tax also remains due on French real-estate assets above the EUR 1.3M threshold.

Is the France-Italy tax treaty of 5 October 1989 compatible with the lump sum?

Yes, in principle. The treaty remains fully applicable to the Italian resident under the 24-bis regime, who remains a resident of Italy within the meaning of its article 4 — the Agenzia delle Entrate issues an enforceable tax-residence certificate. However, two points deserve attention: (i) article 17 (artists and sportspeople) allocates taxation to the State of the performance, regardless of the lump sum — an artist resident in Italy under the 24-bis remains taxable in France on their French fees; (ii) the treaty contains no tax sparing specific to the lump sum, which may create an asymmetry of tax credits on certain passive income routed to a third State. A case-by-case analysis is indispensable.

Must I pay the French exit tax when leaving France for Italy?

The exit tax of article 167 bis of the French Tax Code applies to taxpayers who have been French tax residents for at least six of the last ten years and who transfer their tax domicile out of France, where they hold securities with an overall value exceeding EUR 800,000 or representing at least 50% of a company's profits. Italy being an EU member State, the payment deferral is as of right and without mandatory guarantee. Unrealised gains are definitively relieved beyond a post-departure holding period (two years, extended to five years where the overall value of the securities exceeds EUR 2.57 million). A form no. 2074-ETD remains mandatory in the year of transfer.

Can my spouse and children benefit from the same regime?

Yes, by express extension. Article 24-bis para. 6 TUIR opens the benefit of the regime to the family members of the main taxpayer — spouse, children, dependent parents within the meaning of the codice civile — for an additional lump sum of EUR 50,000 per person per year since 1 January 2026 (EUR 25,000 previously; the doubling was made by the Italian Finance Act for 2026, art. 1, alongside the increase of the main lump sum). Each must individually meet the condition of Italian non-residence for nine of the last ten years. For a household of four electing together as from 2026, the annual cost amounts to EUR 300,000 + 3 × EUR 50,000 = EUR 450,000. A frequent configuration in wealth family offices: a main member and several attached ascendants or descendants.

How do I exit the 24-bis regime before the fifteen-year term?

Three routes. (1) Express waiver in the annual return — the exit takes effect for the following year and is definitive: no return is possible. (2) Non-payment of the lump sum by 30 June — entails automatic forfeiture, without any penalty beyond ordinary recovery. (3) Transfer of residence out of Italy — residence ceases, and so does the regime; the tax treaty of the new host State applies. In all cases, the exit is irreversible: a fresh benefit of the 24-bis requires meeting again the nine-year non-residence condition, which in practice excludes any rapid return.

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A transfer project towards the 24-bis regime or an eligibility to validate?

A confidential initial consultation to frame your operation — simulation of the fifteen-year cost, scope of qualified shareholdings, exit-tax timetable, coordination with an Italian partner for the interpello.

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© BENSAID Avocats — The information published on this site does not constitute legal advice and cannot replace a personalised analysis. Sources: art. 24-bis of the Testo Unico delle Imposte sui Redditi (D.P.R. 22 December 1986 no. 917), inserted by the legge di bilancio 2017 (L. 11 December 2016 no. 232, art. 1 §§ 152 ff.); decree-law of 9 August 2024 no. 113, converted by the law of 7 October 2024 no. 143, raising the lump sum from EUR 100,000 to EUR 200,000 for electors as from 10 August 2024; Legge di bilancio 2026 (Italian Finance Act for 2026), art. 1, raising the lump sum from EUR 200,000 to EUR 300,000 and the family extension from EUR 25,000 to EUR 50,000 per member, for new electors as from 1 January 2026; provvedimento of the director of the Agenzia delle Entrate of 8 March 2017 no. 47060/2017; tax treaty between France and Italy of 5 October 1989 (art. 4, 6, 13, 17); French Tax Code art. 167 bis (exit tax) and form 2074-ETD; art. 1741 of the French Tax Code (tax fraud). Regime subject to changes in Italian legislation. Validation with an Italian avvocato tributarista is recommended for any concrete operation. Editorial update: 1 June 2026.