Investment May Soon Be Required for Italy’s €200K Flat Tax

Italy has long been a favorite destination for wealthy individuals looking to enjoy the beauty, culture, and lifestyle of the Mediterranean—while benefiting from a special flat tax regime. But now, change may be coming.

In 2017, Italy launched a special tax program to attract high-net-worth individuals. Often called the “CR7 Law” (after Cristiano Ronaldo used it), this regime offers a big tax advantage:

• Flat tax of €200,000 per year on all foreign income
• Additional €25,000/year for each dependent family member
• Available for up to 15 years
• Only for those who haven’t lived in Italy for at least 9 out of the last 10 years

This means that no matter how much you earn abroad—millions in dividends, capital gains, or business income—you only pay the flat fee. Domestic income (earned in Italy) is taxed normally.

Italian lawmakers are proposing a new requirement: to tie the €200,000 flat tax to a mandatory investment in the Italian economy.

Proposed Investment Options:

• Government bonds
• Startups or innovative companies
• Venture capital funds
• Regulated investment vehicles

However, real estate may not count toward this investment.

This idea is part of a broader goal: to ensure that wealthy newcomers also contribute directly to the local economy—not just through taxes, but through actual capital investments.

• €500,000 or more in eligible Italian assets

This number could change depending on what sectors the government wants to support. The key point is: you may need to invest a large sum—on top of paying the €200,000 annual tax.

There are a few reasons:

• To ensure economic benefits from wealthy migrants go beyond just tax payments
• To address criticism from the European Union about unfair tax competition
• To align with other investment migration models around Europe

Some Italian officials also worry that many beneficiaries simply live in luxury villas and pay their flat tax—without contributing to jobs or innovation in Italy.