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Updated: June 2026

Case study · Italy · Residence permit

How We Included a Family Member in Italy's Flat Tax for an Additional €25,000 Per Year

Italy's flat tax regime was designed for high-net-worth individuals relocating their tax residency to Italy: instead of being taxed on worldwide income at standard rates, they pay a fixed annual tax. However, the regime offers a convenient option that is often overlooked: it can be extended to family members. Our client was already using flat tax and wanted to include his spouse. We explain how this works for a fixed additional fee of €25,000 per year for each family member.

Sergey EvdokimovSergey EvdokimovManaging Partner, BRIDGESReading time9 min readVerificationReviewed by an expert

This case is based on a real matter. The name and certain identifying details have been changed to protect confidentiality.

BRIDGES client story - How We Included a Family Member in Italy's Flat Tax for an Additional €25,000 Per Year
Contents

Case at a glance

Situation, solution and outcome in seven lines

Client
Konstantin, about 55, an investor from Moscow, with his wife
Objective
Extend flat tax to family member
Program
Italy, Investor Visa
Mechanism
Fixed tax for primary applicant + fee for family members
Additional Fee
€25,000 per year for each included family member
Benefit
Family member's worldwide income is also subject to fixed rate, not standard progressive scale
Result
Spouse included in regime for €25,000 per year

Client story

Client's Story

Where they started

The client had already relocated his tax residency to Italy and was using the flat tax regime: his worldwide income was taxed not under the standard progressive scale, but at a fixed annual rate as the primary applicant. For an individual with income from multiple countries, this provided both predictability and tax savings. The question he raised concerned his family: his spouse also had her own foreign income sources, and taxing her under standard Italian rules would be disadvantageous.

Why the standard route did not work

This is where the family option of the regime comes into play. Flat tax can be extended to family members, and it works simply: the primary applicant pays his fixed tax, and for each included family member, a fixed additional fee is added—€25,000 per year. For this amount, the family member's worldwide income is also subject to the fixed regime rather than taxed under the standard scale. For a couple with foreign income sources, this is often substantially more advantageous than standard taxation of the spouse.

What BRIDGES had to solve

It was important to correctly formalize the inclusion: confirm family member status, properly declare the option, and ensure that the €25,000 fee covered the spouse's worldwide income within the regime. Errors here would have meant that the spouse's income would be taxed at the full rate, defeating the purpose of including her.

Why a standard answer would not do

At BRIDGES, we formalized the extension of flat tax to the spouse: verified applicability, declared the family option, and completed the inclusion for a fixed additional fee of €25,000 per year. As a result, both spouses now fall under the predictable fixed regime rather than standard worldwide income taxation.

I lived in Italy on the flat tax, while my wife paid at the ordinary scale. Irena added her to my regime, and the extra payment paid off in the first year. A simple solution no one had mentioned before.

Konstantin · investorThe name and certain identifying details have been changed to protect confidentiality.

What Was at Risk

What Was at Risk

There was no crisis, but there was a risk of overpaying tax for the spouse. Without the family option, her worldwide income would have been taxed under the standard progressive scale, which for foreign income is often significantly more expensive than the fixed additional fee. The key was to correctly extend flat tax to the family member for €25,000 per year and properly formalize the inclusion.

That flat tax can be extended to family members, not just the primary applicant;

  1. 01That the additional fee is a fixed €25,000 per year for each included family member;
  2. 02That for this amount, the family member's worldwide income falls under the fixed regime;
  3. 03That without inclusion, the spouse's income would be taxed under the standard scale;
  4. 04That inclusion must be properly declared and family member status confirmed.

The logic of the solution

How the matter progressed: from checks to result

The chart is built from the facts of this matter and shows the logic of the work without decorative or unverified data.

BasisStage 1

Assessed the benefit of inclusion. First, we compared: ordinary taxation of the spouse's worldwide income against the fixed additional payment of €25,000 per year. Given her foreign income sources, inclusion in the regime was significantly more advantageous.

  • 01
    Stage 2

    Confirmed family member status. We verified and confirmed that the spouse meets the conditions for inclusion in the regime as a family member of the main applicant.

  • 02
    Stage 3

    Declared the family option. We correctly declared the extension of flat tax to the family member - it is the correct declaration of the option, not merely the fact of marriage, that unlocks the fixed additional payment.

  • 03
    Stage 4

    Fixed the additional payment at €25,000. We arranged inclusion for a fixed €25,000 per year, ensuring the spouse's worldwide income is taxed within the regime.

  • 04
    Stage 5

    Covered the spouse's worldwide income under the regime. We ensured that the spouse's foreign income falls under the fixed regime rather than the ordinary progressive scale.

Takeaway. Conclusion: Italy's flat tax extends to family members for a fixed additional payment of €25,000 per year for each; under this amount their worldwide income is taxed within the regime, not under the ordinary scale.

How we solved the issue

How we solved the issue

The work was split into verifiable stages so that every conclusion rested on documents.

  1. 01

    Assessed the benefit of inclusion

    First, we compared: ordinary taxation of the spouse's worldwide income against the fixed additional payment of €25,000 per year. Given her foreign income sources, inclusion in the regime was significantly more advantageous.

  2. 02

    Confirmed family member status

    We verified and confirmed that the spouse meets the conditions for inclusion in the regime as a family member of the main applicant.

  3. 03

    Declared the family option

    We correctly declared the extension of flat tax to the family member - it is the correct declaration of the option, not merely the fact of marriage, that unlocks the fixed additional payment.

  4. 04

    Fixed the additional payment at €25,000

    We arranged inclusion for a fixed €25,000 per year, ensuring the spouse's worldwide income is taxed within the regime.

  5. 05

    Covered the spouse's worldwide income under the regime

    We ensured that the spouse's foreign income falls under the fixed regime rather than the ordinary progressive scale.

  6. 06

    Secured the result

    Both spouses are now subject to predictable fixed taxation: the main applicant under their own flat tax, the spouse at a fixed additional payment of €25,000 per year. The tax burden became predictable and lower than ordinary taxation.

How the work went

From first contact to the result

  1. 01Assessed the benefit of inclusion
  2. 02Confirmed family member status
  3. 03Declared the family option
  4. 04Fixed the additional payment at €25,000
  5. 05Covered the spouse's worldwide income under the regime
  6. 06Secured the result

The sequence and timing reflect this specific case and depend on how complete the documents are and on the decisions of the competent authorities.

Expert comment

The family option of flat tax is something often overlooked, and unjustly so. The regime works as follows: a high-net-worth individual transfers tax residency to Italy and, instead of being taxed on worldwide income under a progressive scale, pays a fixed annual tax. Convenient and predictable. But if a spouse or other family members have their own foreign income sources, they do not necessarily have to be taxed under ordinary rules - the regime can be extended to them. This costs a fixed €25,000 per year for each included family member, and under this amount their worldwide income also falls under the fixed regime. For a couple with substantial foreign income, this is often significantly more advantageous than ordinary taxation of the second spouse. The key is to correctly declare the option and confirm family member status. We did this, and now both spouses are subject to predictable fixed tax burden.

Sergey Evdokimov, Managing Partner, BRIDGESSergey EvdokimovManaging Partner, BRIDGES

Outcome

What the client received

What was required
How we did it · Result
Avoid overpaying for the spouse
Inclusion in flat tax · Fixed €25,000 per year
Confirm eligibility
Family member status · Option is applicable
Declare the option
Correct regime extension · Worldwide income under the regime
Predictability
Both spouses on fixed tax burden · Predictable tax
Predictability
Both spouses on fixed tax burden · Predictable tax

The situation: The client benefited from the flat tax regime in Italy, but the spouse's worldwide income would be taxed under the ordinary scale, which was disadvantageous. What we did: Assessed the benefit of inclusion; confirmed family member status; declared the family option; fixed the additional payment at €25,000; covered the spouse's worldwide income under the regime. What the client obtained: Extension of flat tax to the spouse for €25,000 per year.

Practical takeaway

What matters in a similar situation

  • Conclusion: Italy's flat tax extends to family members for a fixed additional payment of €25,000 per year for each; under this amount their worldwide income is taxed within the regime, not under the ordinary scale.
  • The family now enjoys predictable fixed taxation - because we correctly declared the family option and included the spouse for €25,000 per year.
  • Family members can be added to the preferential tax regime for a fixed annual supplement. We will look at your case.

FAQ

Questions people ask in a similar situation

01Can Italy's flat tax be extended to family members?

Yes. The regime extends to family members of the main applicant for a fixed additional payment of €25,000 per year for each included member. Under this amount, their worldwide income is taxed within the fixed regime.

02What is the cost of including a family member?

Fixed €25,000 per year for each included family member - in addition to the fixed tax of the primary applicant. The exact parameters of the regime are clarified with the competent authority.

03What does inclusion provide?

The family member's worldwide income falls under the fixed tax regime and is not taxed according to the standard progressive scale. With significant foreign income, this is often substantially more advantageous than standard taxation.

04Who benefits from the family option?

Couples and families where the second spouse or other members have their own substantial foreign income: the fixed additional payment of €25,000 is typically less than the standard tax on such income.

05What is required for inclusion?

Confirm family member status and correctly declare the regime extension option. Family relationship alone, without proper declaration of the option, does not activate the additional payment.

06Which documents were key in this case?

Assessed the benefit of inclusion. First, we compared: ordinary taxation of the spouse's worldwide income against the fixed additional payment of €25,000 per year. Given her foreign income sources, inclusion in the regime was significantly more advantageous. Confirmed family member status. We verified and confirmed that the spouse meets the conditions for inclusion in the regime as a family member of the main applicant.

07Why did the standard route not suit the client?

This is where the family option of the regime comes into play. Flat tax can be extended to family members, and it works simply: the primary applicant pays his fixed tax, and for each included family member, a fixed additional fee is added—€25,000 per year. For this amount, the family member's worldwide income is also subject to the fixed regime rather than taxed under the standard scale. For a couple with foreign income sources, this is often substantially more advantageous than standard taxation of the spouse.

About the author

Sergey Evdokimov

Author: Sergey Evdokimov

Managing Partner, BRIDGES

As Founder and Managing Partner of BRIDGES, I am responsible for the firm's strategy and personally lead its most complex client matters, including cases in which citizenship or residence decisions require a strategic view and consideration of capital.

I begin by defining the objective: the outcome the client needs, the facts that affect the choice, and the matters that require further review. I then establish the available directions, the sequence of work, and the key decision points.

Once the strategy has been agreed, I oversee the BRIDGES team's key decisions and remain involved at the stages that shape the course of the matter. The purpose is to give the client a clear rationale for the chosen direction and a precise understanding of the next steps.

Prepared on the basis of BRIDGES practice and reviewed by a subject-matter expert.

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Dmitry NagyInternational Tax Consultant, BRIDGES
Dmitry Nagy, International Tax Consultant, BRIDGES

Names and certain details have been changed to protect client confidentiality. The result described reflects one specific situation and is neither a public offer nor a guarantee of a similar outcome. Programme terms are stated as of 2026 and may change - please confirm current parameters with a BRIDGES consultant.