Blew Portugal’s Incentives? Here’s Why Italy Is Now Stealing the Show

Executive Summary
Portugal quietly killed its flagship NHR tax regime in 2024—one of the very reasons many investors chose it. Now, Italy’s rolling out investor visa and flat‑tax regimes that are aggressively competitive. For capital on the move, this is not just a detour—it could be the main road forward.

What’s Happening?

• Italy offers an Investor Visa / Golden Visa with as little as €250,000 into Italian startups or strategic investments. (Immigrant Invest)

• New residents (not tax resident in Italy for 9 of last 10 years) can opt into a flat tax of €200,000 per year on foreign-sourced income. (investorvisa.mise.gov.it)

• The flat tax replaces the regular progressive taxes on foreign income, exempts foreign assets, and bypasses many disclosure requirements. (The Italian Lawyer)

• Italy doubled the flat-tax cap for new applicants in 2024—from €100,000 to €200,000/year. (Reuters)

• The Investor Visa does not require the investment to be made before approval—you have some flexibility. (Harvey Law Group)

Why It Matters for Us / Our Clients

1. Portugal’s Promise Just Faded
With the removal of NHR and the closure of Golden Visa real estate routes, Portugal’s appeal for tax-efficient residency is eroding.

2. Reduced Entry & Risk in Italy
Italy’s model lowers upfront risk (invest after approval), demands less physical presence, and accelerates timing. For investors frustrated by Portugal’s backlog, it’s a compelling alternative.

3. Predictable Tax Regime
Fixed tax on worldwide foreign income offers stability. Even if you earn €5M overseas, your tax burden won’t vary. That’s clarity and leverage.

4. Exit Flexibility & Legacy Planning
Because Italy’s flat tax is elective and lasts up to 15 years, you retain exit options. Also, it can shield inheritance and reporting obligations for foreign-held assets.

5. Strategy Fitting High-Income Profiles
It makes sense primarily for high-net-worth individuals paying exorbitant taxes elsewhere. The math is compelling when your past income would be taxed far above €200,000.

Risks & Caveats

• The flat-tax regime applies to foreign-sourced income only—Italian-source income is still taxed normally. (The Italian Lawyer)

• Existing participants under older regimes may retain favorable terms (e.g. €100,000 flat tax) while new entrants will face the €200,000 rate. (Reuters)

• Choosing tax residency in Italy could clash with tax laws in your home country (e.g. U.S. IRS).

• Citizenship is not automatic—Italian citizenship requires 10 years of residency. (Immigrant Invest)

• Political shifts could alter these incentives. Tax regimes are not guaranteed forever.

What’s Next?

• We need to audit all clients currently in Portugal and evaluate their exposure now that NHR is gone.

• Model scenarios: Portugal exit → Italy entry under the flat tax.

• Structure capital allocations that comply with Italian tax law and maximize benefit.

• Monitor legislative changes—like potential rollback of incentives.

Join the Next Chapter

If your capital mobility or legacy planning depends on fiscal certainty and global flexibility—not just real estate or residency programs—Italy deserves your serious attention.

📩 Let’s assess your position, build adaptation strategies, and move decisively.