Procedural spoke · Wealth / Non-residents · Italy art. 24-bis TUIR

Moving to Italy:
the tax mechanics, step by step

Choosing the Italian lump-sum regime at €300,000 (since 1 January 2026, under the Italian Finance Act for 2026, art. 1) is not merely a matter of signing an option box in a return. The firm observes, case after case, that eligibility is secured upstream — through a rigorous audit of French tax residence, a controlled chronology of departure acts, and France–Italy coordination with no blind spots. This spoke sets out the complete procedure, from the preparatory audit to the first Italian F24 payment, by way of the French exit tax, registration with the Anagrafe and the exercise of the option in the Modello Redditi PF. Audience: the client at an advanced stage of reflection who wishes to understand the execution before committing to it.

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Analysis by Maître Jonathan Bensaid · Tax lawyer · Paris · Geneva · Marseille · Cannes · Lisbon
— In brief
Target regime
Italian lump-sum regime — imposta sostitutiva, art. 24-bis TUIR
Amount
€300,000 / year (new entrants since 1 Jan. 2026, Italian FA 2026 art. 1) — €50,000 per family member — €200,000 for those who opted 10 Aug. 2024 → 31 Dec. 2025 — €100,000 for those who opted before 9 Aug. 2024
Duration
15 tax years maximum — option exercised in the Modello Redditi PF
Eligibility
Non-resident of Italy for 9 of the last 10 years
Typical timetable
12 to 18 months between the departure audit and the first F24 payment
Friction points
Residual French residence · exit tax (French Tax Code art. 167 bis) · timing of the transfer
— 01

A procedure more demanding than it appears

Relocation to Italy under the art. 24-bis TUIR regime is often presented as a formality: “you move, you register, you tick a box”. The reality observed by the firm is more nuanced. The cardinal risk is not eligibility for the Italian lump-sum regime — the 9-of-10-years rule is simple to document. The risk is residual French residence: any single one of the three tests of article 4 B of the French Tax Code — home, main professional activity, or centre of economic interests — is enough to establish French residence. The spouse who has not relocated and remains in Paris, the children schooled in France, the wealth-holding company managed from the Paris office — each of these isolated points may suffice to trigger a dual residence, which the France–Italy treaty of 5 October 1989 will then arbitrate through its article 4 tie-breaker.

The second critical point is timing. The transfer of tax domicile is not a one-off event: it is a bundle of acts — termination of the French lease, registration with the Italian Anagrafe, closure of the main French accounts, transfer of the effective professional activity, schooling of the children — that must converge on a documentable pivot date. That date determines how the taxation of the year of departure is split between France and Italy, triggers the exit tax reckoning of article 167 bis of the French Tax Code for holders of substantial shareholdings, and sets the starting point for the 183-day count of art. 2 TUIR.

The third point is evidence. The French tax authorities have a three-year reassessment period (French Tax Code art. L.169 LPF), extended to ten years in cases of concealed activity or undeclared foreign accounts. The evidential file — leases, energy bills, schooling, employment contracts, banking attestations, plane tickets — must be built during the procedure, not reconstructed after an audit. The firm observes that the best-defended files are those for which the chronology has been kept month by month, from the initial audit onward.

— 02

Six steps of the procedure

The chronology observed by the firm on matters carried through to completion. The timeframes are indicative — certain steps overlap, others tighten depending on the wealth profile and the Italian municipality of settlement.

1. T-12 months — Audit of French residence and wealth mapping

The firm conducts a line-by-line audit of French tax residence within the meaning of article 4 B of the French Tax Code: location of the home, structure of the professional activity, geography of economic interests. Exhaustive wealth mapping — bank accounts, life-insurance policies, substantial shareholdings (threshold of €800K or > 50% of a company), French and foreign real estate, company shares and interests. Exit tax simulation within the meaning of article 167 bis of the French Tax Code: base, rate, conditions of the automatic payment deferral applicable to a transfer to Italy. Informed choice of the Italian municipality of settlement — the practice of certain Agenzie territoriali is more formalistic than others, which may bear on the registration file.

2. T-9 months — Italian ruling (interpello) and wealth structuring

For complex asset portfolios — Luxembourg holding, Anglo-Saxon trust, holdings in unlisted companies — the firm prepares an interpello probatorio before the Direzione Centrale Persone Fisiche of the Agenzia delle Entrate. Aim: to secure ex ante eligibility for the lump-sum regime and the Italian characterisation of the assets and flows concerned. Response time of the Italian authorities: 120 days, extendable. In parallel, the search for the Italian property (acquisition or long-term lease) — the chosen municipality determines the competent Anagrafe. Setting up or reviewing wealth structures (holding, family office) consistently with the Italian taxation of the lump-sum regime.

3. T-3 months — Leaving France: filings and winding-down of active situations

Transfer declaration to the French tax services: return no. 2042 for the year of departure, box 8UU, accompanied where necessary by return no. 2074-ETD for the exit tax. Termination or assignment of the main lease in France, transfer or closure of energy, home-insurance and health-insurance contracts. Notification to the Trade Register if a director of a French company. Update of the registers of beneficial owners. Notice to the CAF, to social security and to the employer (if an employee) — the documentation accumulated at this stage forms the backbone of the evidential file in the event of a later audit.

4. T+0 — Effective transfer and Italian entry formalities

The day of the transfer is the pivot date. Removal, taking possession of the Italian home, application for the codice fiscale (equivalent to the tax ID) from the Agenzia delle Entrate — a quick formality for EU nationals, on presentation of a passport. Registration with the Anagrafe della Popolazione Residente of the municipality of residence — it is this registration that establishes Italian residence within the meaning of art. 2 TUIR. Note: the AIRE (Anagrafe degli Italiani Residenti all'Estero) concerns only expatriate Italian nationals — it is not the registration formality for an incoming French national. Declaration of presence to the Italian authorities beyond three months (Schengen formality for EU nationals).

5. T+1 to T+3 months — Operational switch-over and treaty coordination

Notification of the change of address to French and international banking institutions, brokers, life-insurance companies, and the corporate registers of the companies held. Opening of an Italian bank account (often required for the F24 payment). For France–Italy flows (dividends, interest, royalties), application of the treaty rates of the treaty of 5 October 1989 — forms 5000 and 5001 on the French side for the reduction at source. Setting up a record of the 183 days of physical presence in Italy — a documented calendar (tickets, geolocated bank statements) is indispensable for mobile profiles.

6. T+12 to T+18 months — First Modello Redditi PF and payment of the lump sum

First Italian return: Modello Redditi PF for the year of the transfer, filed the following year (ordinary deadline: 30 November). Exercise of the art. 24-bis TUIR option in the dedicated box — the option is firm for the year and renewable for up to 15 tax years. Payment of the imposta sostitutiva: €300,000 for the principal taxpayer (new entrants from 1 January 2026, Italian Finance Act for 2026 art. 1), €50,000 per attached family member (spouse, children, dependent parents within the meaning of art. 433 of the Italian Civil Code), via the electronic F24 form before 30 June of the year following that of the option. Taxpayers who opted between 10 August 2024 and 31 December 2025 keep their entry rate of €200,000 + €25,000/member (vested right); likewise for those who opted before 9 August 2024 at €100,000 + €25,000/member. On the French side, filing of return no. 2042-NR for residual French-source income (real estate, real-estate capital gains, IFI wealth tax on French real estate).

— 03

Our approach at the firm

The firm conducts the operation as a France–Italy team. The firm leads the French dimension — audit of residence within the meaning of article 4 B of the French Tax Code, simulation and settlement of the exit tax, evidential file, interaction with the tax treaties (5 October 1989 for income and wealth taxes; 20 December 1990 for inheritances and gifts). A partner avvocato tributarista in Milan or Rome handles any ruling before the Agenzia delle Entrate, the follow-up of the Anagrafe registration, the exercise of the option in the Modello Redditi PF, and the F24 payment.

On complex asset portfolios — holding(s), trust, Luxembourg or Swiss structures, unlisted shareholdings — the firm systematically recommends an interpello probatorio in Italy before the transfer. This ruling, enforceable against the Italian authorities, secures eligibility for the lump-sum regime, the characterisation of the foreign flows covered, and the interaction with any wealth structures in place. Timeframe to factor into the schedule: 4 to 6 months between filing the request and the reply of the Direzione Centrale Persone Fisiche.

For directors still active in France, the firm secures upstream the dissociation between the residence of the director and the effective location of the management of the French entities — retaining a significant wealth-management activity from Italy may activate the centre of economic interests test of art. 4 B of the French Tax Code. Delegations, relocation of the effective seat, recomposition of governance: these matters are handled before the transfer, never after.

— Frequently asked questions

Operational questions before a transfer to Italy

How much time should be allowed between the decision and the first payment of the Italian lump sum?

12 to 18 months on matters conducted calmly. The French audit and wealth mapping require 2 to 3 months; the possible Italian ruling, 4 to 6 months; the French departure administrative steps, 1 to 2 months; the post-transfer stabilisation and the first Modello Redditi PF, 12 calendar months. Matters conducted in haste — fewer than 6 months between the decision and the transfer — accumulate the evidential blind spots that the firm prefers to avoid.

Can my spouse remain a French tax resident while I opt for the Italian lump-sum regime?

Legally, yes — fiscally, it is a major risk. Maintaining the home within the meaning of article 4 B of the French Tax Code in France — that is, the habitual residence of the family — is enough to establish your own French residence, regardless of your physical presence in Italy. The treaty tie-breaker of art. 4 of the treaty of 5 October 1989 will then examine the permanent home available, then the centre of vital interests. In the vast majority of cases, the firm recommends a coordinated family transfer — or, failing that, a wealth organisation that unambiguously documents the break with the French home.

And the schooling of the children in France?

It is a strong indicator of French residence within the meaning of administrative doctrine and the case law of the Conseil d'Etat. Minor children schooled in France, housed in France during the school year, establish the presumption of a French home. Several options coexist: schooling in Italy (French lycée of Milan or Rome — a frequent option), boarding school in a neutral third country, or postponing the transfer to the next school stage. The matter must be settled at the initial audit — not discovered mid-procedure.

How is the French exit tax calculated at the time of departure?

The exit tax of article 167 bis of the French Tax Code applies to unrealised gains on the substantial shareholdings held at the time of the transfer — securities whose value exceeds €800,000 or representing more than 50% of the rights in a company's profits. The taxpayer files return no. 2074-ETD and benefits from an automatic payment deferral for a transfer to Italy (an EU member State, subject to the administrative-assistance conventions). The tax becomes due upon an effective disposal of the securities, or lapses after 15 years in the absence of a disposal (subject to the regimes in force).

Is the prior Italian ruling mandatory or recommended?

Recommended, never mandatory. The art. 24-bis TUIR option can be exercised directly in the Modello Redditi PF without a prior interpello. The firm reserves the ruling for matters involving: a non-standard foreign wealth-holding company (Luxembourg, Netherlands, Switzerland, Liechtenstein); a trust or a wealth foundation; shareholdings in Italian companies (the lump-sum regime covers only foreign-source income); or a former Italian residence that warrants being traced with regard to the 9-of-10-years rule. Non-negligible cost and timeframe, but valuable enforceability against the authorities.

Can I change Italian municipality after settling in?

Yes, with no impact on the lump-sum regime so long as residence remains Italian within the meaning of art. 2 TUIR. Changing municipality only entails an update of the registration with the Anagrafe della Popolazione Residente (deregistration at the former municipality, new registration at the new one). The Italian tax centre of attachment (Agenzia delle Entrate territoriale) follows the municipality of residence — a potentially more formalistic practice in certain regions. The firm advises stabilising the municipality of settlement for the first five years, the period most sensitive to French and Italian audits alike.

What remains taxable in France after the transfer?

Under the non-resident regime: French-source income (rents from French real estate, salaries for activity carried out in France, dividends from French companies under treaty withholding), French real-estate capital gains (non-resident regime, levy of art. 244 bis A of the French Tax Code), IFI wealth tax on French real-estate assets situated in France (the Italian lump-sum regime does not cover the IFI). On inheritances and gifts, the France–Italy treaty of 20 December 1990 applies specific rules according to the nature of the assets transmitted — a matter to address at the initial mapping, especially for family estates.

If I return to France after a few years, what happens?

The return is free, with no Italian tax penalty beyond the mere cessation of the art. 24-bis option (which gives rise to no back-tax on the years spent under the lump-sum regime). On the French side, you become a tax resident again under article 4 B of the French Tax Code as soon as the home is re-established. Beware of the 9-of-10-years count: a return after only a few years in Italy will not reopen the benefit of the lump-sum regime before a sufficient period of Italian non-residence has been rebuilt. The firm always documents, in the relocation file, the scenario of a possible reversibility.

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Jonathan Bensaid, avocat fondateur

Written by

Me Jonathan Bensaid, avocat fiscaliste, fondateur du cabinet Bensaid Avocats, inscrit aux Barreaux de Paris & Genève.

Complex procedure requiring coordinated France–Italy tax support. The elements presented are indicative and subject to the practice of the Agenzia delle Entrate and of the French tax authorities as at the date of the transfer. © BENSAID Avocats — The information published on this site does not constitute legal advice and cannot replace a personalised analysis. Sources: French Tax Code art. 4 B, 167 bis, 244 bis A, L.169 LPF; France–Italy tax treaty of 5 October 1989 (income and wealth taxes), art. 4; France–Italy treaty of 20 December 1990 (inheritances and gifts); Italian TUIR art. 2 and art. 24-bis; Italian decree-law of 9 August 2024 no. 113 (converted by L. 143/2024) raising the lump sum from €100,000 to €200,000 for entrants who opted between 10 August 2024 and 31 December 2025; Legge di bilancio 2026 (Italian Finance Act for 2026), art. 1, raising the lump sum to €300,000 and the family extension to €50,000 per member, for new entrants from 1 January 2026; Italian Civil Code art. 433 (dependent family members); French forms no. 2042, no. 2042-NR, no. 2074-ETD; Italian Modello Redditi PF; F24 form. Editorial update: 1 June 2026.