Italy

Personal income tax rates in Italy are progressive, ranging from 23% to 43% at the national level, with additional regional and municipal surcharges that vary by location. Certain investment income, such as capital gains and dividends, may benefit from preferential treatment, especially if structured through qualified holding entities or subject to double-taxation treaties.

Corporate income in Italy is subject to a standard rate of 24%, known as IRES, plus a regional production tax (IRAP) averaging 3.9%. However, the country offers incentives for companies investing in research, innovation, and strategic sectors, potentially reducing the effective tax burden. Family offices can structure themselves through limited liability companies (S.r.l.) to benefit from corporate treatment while maintaining operational flexibility.

Philanthropy is a well-established tradition in Italy, often tied to religious, cultural, or educational causes. Donations to recognised foundations or non-profit organisations can be deductible within specific limits. Wealthy families can establish private foundations or cultural trusts to manage charitable initiatives, contributing to Italy’s strong legacy of arts and heritage patronage.

A cornerstone of Italy’s modern tax appeal is the flat-tax regime. Eligible individuals relocating to Italy can opt to pay a fixed €200,000 annual tax on all foreign-source income, regardless of amount. The regime applies for up to 15 years and can extend to family members at a reduced rate. This incentive has attracted entrepreneurs, investors, and executives seeking residency in Italy while maintaining global investment flexibility.

The S.r.l. is Italy’s most common corporate structure for family offices and holding entities. It provides limited liability, flexible governance, and relatively straightforward incorporation. Shareholders can define voting rights and profit allocations in tailored articles of association, allowing for control retention within family groups. S.r.l.s are also eligible for Italy’s participation exemption regime, offering tax advantages for those who qualify.

For larger or more institutional family offices, the S.p.A. offers a more formal corporate framework. It allows for greater capital raising, transferability of shares, and enhanced governance features such as statutory auditors and boards. S.p.A.s are commonly used by major family conglomerates transitioning toward a more corporate-style structure or preparing for partial liquidity events.

Although trusts are not native to Italian law, Italy recognises foreign trusts established under the Hague Convention. They are increasingly used by families for succession planning and asset protection, particularly when dealing with cross-border estates. Trusts should be carefully structured to avoid double taxation. However, they do provide flexibility in managing multigenerational wealth and philanthropic commitments.

Italy’s economy is the third largest in the eurozone, supported by advanced manufacturing, luxury goods, and export-led sectors. Growth has remained modest but stable, with structural reforms and EU recovery funds stimulating investment in green energy and technology. Inflationary pressures have moderated, and family offices continue to find opportunities in mid-market private equity and real estate.

While Italian politics can be volatile, recent years have brought a degree of policy continuity. Governments have prioritised fiscal stability and incentives for private investment. Membership in the EU and the eurozone provides an anchor of predictability, and Italy continues to benefit from strong institutional frameworks. Political reform remains an ongoing process, but investor confidence has improved.

Although bureaucracy can be cumbersome, Italy has made measurable progress in simplifying procedures for business establishment and taxation. Initiatives such as the “Investor Visa for Italy” and the expansion of the notional interest deduction encourage both domestic and international investment. Family offices with strong local partnerships find the environment conducive to long-term value creation.

Italy maintains robust international relationships, participating in all major economic and tax transparency frameworks. Bilateral treaties with over 90 jurisdictions help prevent double taxation and support capital mobility. As a G7 economy, Italy continues to play a strategic role in global policy dialogues, further enhancing its appeal as a stable European base for family offices.

Italy’s investor visa and elective residency programmes provide a well-defined structure for foreign nationals to relocate. The investor visa requires a minimum investment of €250,000 in an innovative startup or €2 million in government bonds. Residency can also be obtained through real estate investment or family reunification.

Milan is the centre of Italy’s professional services industry, hosting major legal and accounting firms with international reach. Boutique advisory firms and private banks specialise in serving family offices and UHNW clients, offering integrated tax, legal, and investment support. A growing number of tech-driven providers now cater to digital reporting, risk analytics, and ESG compliance.

Italy produces a steady stream of finance and legal graduates from institutions such as Bocconi University and LUISS. Combined with multilingual proficiency and cultural sophistication, this workforce provides family offices with skilled professionals who understand both global finance and local context. Retaining top talent can be competitive, but the availability of expertise continues to improve as the sector grows.

Italy’s culture celebrates creativity, tradition, and craftsmanship. Family and community values underpin both social and business relationships, aligning naturally with family office philosophies centred on stewardship and legacy. Cultural familiarity, coupled with an international outlook, makes Italy an appealing environment for multigenerational families.

The country hosts a range of prestigious schools and universities, many offering international curricula in English. Institutions such as Bocconi, Politecnico di Milano, and international schools in Rome and Florence attract both local and expatriate families. Education quality, combined with proximity to major European capitals, enhances Italy’s attractiveness for families relocating with children.

Italian is the primary business language, but English is widely used in financial and legal circles, particularly in Milan and other northern cities. Many professional firms operate bilingually, ensuring accessibility for international family office clients. Language familiarity and cultural fluency remain important for integration, but are no longer barriers to operating effectively in Italy.