# Trentino-Alto Adige / Südtirol, Italy: taxes, residence and cost of living

Source: https://domicile.wiki/places/italy/trentino-alto-adige-sudtirol/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 74 / 100
- Can EU citizens live here?: free: register as an EU citizen
- Can US citizens live here?: income of €31,000 a year · Elective residence visa
- Other passports: income of €31,000 a year · Elective residence visa
- Tax on a €30M portfolio: €183,330 a year · Family holding company (S.r.l.) with participation exemption
- Wealth tax: limited
- Children inherit: low tax
- Living costs, family of five: €231,871 a year
- EU member: yes
- Currency: EUR

## Tax on investments, inheritance and wealth

Trentino-Alto Adige / Südtirol: no regional difference for the family's taxes. Capital gains, dividends and interest of a private investor taxed at the 26% imposta sostitutiva (or withholding as final tax), IVAFE, IVIE and inheritance tax are national and identical in this region. The regional IRPEF surcharge (addizionale regionale, 1.23% base rate, raised by many regions) and the municipal surcharge apply only to income in the progressive IRPEF base (reddito complessivo, art. 50 D.Lgs. 446/1997), not to investment income under the 26% substitute tax; they matter only for salary, pension or other ordinary income. Autonomous region; the provinces of Trento and Bolzano set their own (lower) IRPEF surcharges, still only on ordinary income.

- **Ordinary tax residence**: Worldwide taxation. Financial income (dividends, interest, capital gains) is taxed separately at a 26% substitute tax (12.5% on Italian and white-list government bonds), not at progressive IRPEF rates (23-43% plus regional/municipal surcharges).
- **Lump-sum tax for new residents (Art. 24-bis TUIR)**: Optional substitute tax on all foreign-source income: EUR 300,000 per tax period for individuals transferring residence to Italy from 1 Jan 2026 (art. 24-bis(2) TUIR as amended by L. 199/2025; EUR 200,000 for transfers from 11 Aug 2024, EUR 100,000 before). Each included family member pays EUR 50,000. Replaces income tax on foreign income and gains (except gains on qualified holdings realised in the first 5 tax periods), IVAFE and IVIE, and foreign asset reporting. Italian-source income taxed normally. Ceases 15 years after the first tax period of validity (art. 24-bis(4)); revocable. During the option, inheritance and gift tax on transfers by the opting person is due only on assets located in Italy (art. 1(158) L. 232/2016).
- **Family holding company (S.r.l.) with participation exemption**: The family holds its listed shares through an Italian S.r.l. (IRES 24%). Dividends are 95% excluded from IRES (art. 89 TUIR) and gains on shares are 95% exempt (PEX, art. 87 TUIR) if held 12 months, booked as financial fixed assets in the first balance sheet and issued by a company outside privileged-tax states: 1.2% effective, with no minimum stake. The 2026 Budget Law (L. 199/2025, art. 1 c. 51-55) had limited both to stakes of 5% or EUR 500,000; art. 11 DL 38/2026 (converted by L. 88/2026) repealed those limits with effect from 1 January 2026. The holding must pass the non-operating company test (presumed revenue 1% of the securities' value, three-year average); a low-yield portfolio that fails pays IRES at 34.5% on at least a deemed 0.75% of that value. Bonds, funds/ETFs and shares sold within 12 months are taxed at the full 24%, so the advantage covers only the directly held shares kept as a long-term book. Payouts bear 26%. Inheritance is unchanged (4% above EUR 1m per child).

## Income tax

National IRPEF is 23% to EUR 28,000, 33% to EUR 50,000 and 43% above. With the Lombardy regional surtax (1.23% to 1.73% by income) and the Milan municipal surtax (0.8%, exempt below EUR 23,000) the marginal rates in Milan are about 25% to 45.5%. Employees pay 9.19% pension contributions; the self-employed (Gestione Separata, VAT number, no other cover) pay 26.07% up to a cap of EUR 122,295.

## How to get residence

EU citizens only register. Non-EU citizens (US and others) can use the investor visa (from EUR 250,000 in a start-up), the elective residence visa (about EUR 31,000 a year of passive income, no work) or, since March 2026, a digital nomad visa (about EUR 28,000 a year).

- **EU free movement (anagrafe registration)** (Free movement; EU citizens; open): EU citizens register with the municipality after 3 months; permanent residence after 5 years.
- **Investor visa: innovative start-up** (Investor residence; US citizens, other passports; open): A 2-year permit for investing EUR 250,000 in an innovative start-up; the cheapest of Italy's four investor routes.
- **Investor visa: Italian company, donation or government bonds** (Investor residence; US citizens, other passports; open): Other investor routes: EUR 500,000 in an Italian company, EUR 1 million philanthropic donation, or EUR 2 million in government bonds.
- **Elective residence visa** (Passive income / retirement; US citizens, other passports; open): For people living on stable passive income who do not work in Italy; the income benchmark is set by consulates, about EUR 31,000 a year.
- **Digital nomad and remote worker visa** (Digital nomad; US citizens, other passports; open): For highly qualified remote workers earning about EUR 28,000 a year from non-Italian clients; consulates have accepted applications since March 2026.
- **Work permits (Decreto Flussi, EU Blue Card)** (Work; US citizens, other passports; open): Non-EU workers are admitted through annual quotas (Decreto Flussi) with an employer's nulla osta; the Blue Card covers highly qualified staff.

Citizenship: 10 years of legal residence for most non-EU nationals (4 for EU citizens per general knowledge), with Italian language (B1, general knowledge) and integration requirements; the investor visa does not shorten it. Citizenship by descent was tightened by Decree-Law 36/2025 (converted into Law 74/2025).

## Inheritance law and trusts

Children, a spouse and parents are protected by fixed shares (for example half of the estate for one child). A foreign resident can choose the law of their nationality (EU Succession Regulation art. 22), though Italy's reserved heirs may use a clawback in some cases. Italy recognises trusts under the Hague Convention but has no trust law of its own; private foundations are limited.

## Daily life (0-100, higher is better)

- Safety and personal security: 79
- Political and institutional stability: 63
- Corruption and government integrity: 56
- Legal system and property rights: 65
- Healthcare quality and access: 88
- Education quality: 58
- Human development and quality of life: 83
- Infrastructure and connectivity: 84
- Cost of living and housing: 73
- Business opportunities and economy: 73
- Cultural fit and lifestyle: 38

## Residence and succession sources

- [Italy Golden Visa 2026: requirements, costs and how to apply](https://grey.co/blog/italy-golden-visa) — Grey Group
- [Italy digital nomad visa: complete guide 2026](https://remoteworkeurope.eu/insights/italy-digital-nomad-visa-complete-guide-2026/) — Remote Work Europe
- [Elective residency visa Italy: eligibility, income rules 2026](https://www.globalcitizensolutions.com/pt/elective-residency-visa-italy/) — Global Citizen Solutions
- [Italian citizenship changes take effect](https://eiglaw.com/italian-citizenship-changes-take-effect/) — EIG Law
- [Why do so many people think you can't have Italian dual citizenship](https://www.thelocal.it/20260223/why-do-so-many-people-think-you-cant-have-italian-dual-citizenship) — The Local Italy
- [Your Europe: Residence rights in another EU country](https://europa.eu/youreurope/citizens/residence/residence-rights/index_en.htm) — European Union
- [Italy's Investor Visa: legal framework and investment pathways 2026](https://www.frankvest.it.com/en/news/italy-investor-visa-foreign-investors-guide/) — Frankvest
- [Italy elective residence visa 2026 FAQ](https://italiancitizenshipassistance.com/faq-obtaining-the-elective-residence-visa-in-2026/) — Italian Citizenship Assistance
- [European e-Justice: Succession, Italy](https://e-justice.europa.eu/166/EN/succession?ITALY&member=1) — European e-Justice Portal
- [Regulation (EU) No 650/2012 on succession](https://eur-lex.europa.eu/eli/reg/2012/650/oj) — European Union
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law