Tax Intelligence
Territorial Tax Systems & US Compliance
Territorial Tax Map — All Jurisdictions
| Country | Foreign Income Tax | Local Income Tax | Corporate | Notes |
|---|---|---|---|---|
| Panama | 0% | Up to 25% | 25% | Strict territorial — foreign income never taxed regardless of remittance |
| UAE | 0% | 0% | 9% (>AED 375K) | No personal income tax of any kind; small biz threshold exempt |
| Georgia | 0% | 20% | 15% (0% Virtual Zone) | Territorial; Virtual Zone for IT = 0% corporate on foreign revenue |
| Paraguay | 0% | 10% flat | 10% | Foreign income never taxed; flat 10% on local income only |
| Singapore | 0%* | 0–22% (progressive) | 17% | *Foreign income exempt if not remitted to SG; remittance may trigger tax |
| Hong Kong | 0% | 0–17% (progressive) | 16.5% | Only HK-sourced income taxed; salaries tax caps at 15% |
| Malaysia | 0% | 0–30% | 24% | MM2H holders: foreign remittances now taxed at 3% flat (2024 rule) |
| Thailand | 0%* | 0–35% | 20% | *LTR holders w/ overseas employer: 0%. Pre-2024 rule change: bring-in year only |
| Cyprus | 2.65% | 0–35% | 12.5% | Non-Dom: 0% SDC on dividends/interest for 17 yrs; 2.65% GHS only |
| Portugal | Variable | 14.5–48% | 21% | NHR regime: 20% flat on PT income; foreign income often exempt for 10 yrs |
| Mexico | Varies | 1.92–35% | 30% | Tax resident if 183+ days/yr; non-residents taxed only on MX-sourced income |
| Colombia | Varies | 0–39% | 35% | Non-resident (<183 days): taxed on Colombian-source income only |
US Compliance — FBAR, FATCA & FEIE
FBAR — FinCEN Form 114
Mandatory filing for all US persons with aggregate foreign account balances exceeding $10,000 at any point during the year.
Form: FinCEN 114 (filed with Treasury, NOT the IRS)
Portal: BSA E-Filing System
Deadline: April 15, auto-extended to October 15
Threshold: $10,000 aggregate across ALL foreign accounts (bank, brokerage, crypto on foreign exchanges)
Willful penalty: Up to $100,000/violation or 50% of account balance, whichever is greater
Non-willful penalty: Up to $10,000/violation
Source: IRS.gov — FBAR
Form: FinCEN 114 (filed with Treasury, NOT the IRS)
Portal: BSA E-Filing System
Deadline: April 15, auto-extended to October 15
Threshold: $10,000 aggregate across ALL foreign accounts (bank, brokerage, crypto on foreign exchanges)
Willful penalty: Up to $100,000/violation or 50% of account balance, whichever is greater
Non-willful penalty: Up to $10,000/violation
Source: IRS.gov — FBAR
$10K thresholdApril 15 dueFinCEN Form 114
FATCA — Form 8938
FATCA requires US taxpayers to report foreign financial assets above threshold on Form 8938, filed with your annual 1040.
Form: 8938 (attached to Form 1040)
Single/MFS thresholds: $50K at year-end OR $75K at any point
MFJ thresholds: $100K at year-end OR $150K at any point
Living abroad thresholds: 2× the above amounts
Failure penalty: $10,000 + up to $50,000 if continued after IRS notice
Covers: Bank accounts, stocks, bonds, interests in foreign entities, foreign pension
Source: IRS.gov — FATCA
Form: 8938 (attached to Form 1040)
Single/MFS thresholds: $50K at year-end OR $75K at any point
MFJ thresholds: $100K at year-end OR $150K at any point
Living abroad thresholds: 2× the above amounts
Failure penalty: $10,000 + up to $50,000 if continued after IRS notice
Covers: Bank accounts, stocks, bonds, interests in foreign entities, foreign pension
Source: IRS.gov — FATCA
$50K thresholdForm 8938Filed with 1040
FEIE — Foreign Earned Income Exclusion
The most important US tax benefit for Americans living abroad — excludes up to $126,500 (2024) of foreign earned income from US taxable income.
2024 exclusion amount: $126,500 (indexed to inflation annually)
Form: Form 2555 (filed with 1040)
Two qualifying tests — must pass ONE:
1. Bona Fide Residence Test: Establish genuine legal residency in a foreign country for a full tax year. Requires residency permit/visa + intent to stay.
2. Physical Presence Test (330-Day Rule): Be physically present in foreign countries for at least 330 full days in any 12-month period. Days in the US do NOT count. The 12-month period does not have to match the calendar year.
Note: FEIE covers earned income only (salary, self-employment). Does NOT cover passive income (dividends, capital gains, rental income).
Housing exclusion: Additional exclusion for foreign housing costs above a base amount
Source: IRS.gov — FEIE
2024 exclusion amount: $126,500 (indexed to inflation annually)
Form: Form 2555 (filed with 1040)
Two qualifying tests — must pass ONE:
1. Bona Fide Residence Test: Establish genuine legal residency in a foreign country for a full tax year. Requires residency permit/visa + intent to stay.
2. Physical Presence Test (330-Day Rule): Be physically present in foreign countries for at least 330 full days in any 12-month period. Days in the US do NOT count. The 12-month period does not have to match the calendar year.
Note: FEIE covers earned income only (salary, self-employment). Does NOT cover passive income (dividends, capital gains, rental income).
Housing exclusion: Additional exclusion for foreign housing costs above a base amount
Source: IRS.gov — FEIE
$126,500 exclusion330-day test ORBona fide residence
The 330-Day Physical Presence Test is the more objective of the two FEIE tests. You do not need a visa, lease, or formal residency — just documentation proving you were physically outside the US for 330 full days in a 12-month window. Many nomads use this test because it is pass/fail based on passport stamps and travel records, with no subjectivity.
Jurisdiction Deep Dives
Paraguay — Investor Pass Tax Analysis
Paraguay's April 2026 Investor Pass pairs permanent residency with one of the world's most favorable tax regimes.
Investment required: $150,000 (tourism sector) or $200,000 (real estate/securities)
Foreign income tax: 0% — strictly territorial
Local income tax: 10% flat (one of LatAm's lowest)
Corporate tax: 10% flat
Minimum presence: 1 visit per 3 years (one of the lowest in the world)
FBAR note: US persons must still file FBAR for Paraguayan bank accounts >$10K
Source: libertymundo.com
Investment required: $150,000 (tourism sector) or $200,000 (real estate/securities)
Foreign income tax: 0% — strictly territorial
Local income tax: 10% flat (one of LatAm's lowest)
Corporate tax: 10% flat
Minimum presence: 1 visit per 3 years (one of the lowest in the world)
FBAR note: US persons must still file FBAR for Paraguayan bank accounts >$10K
Source: libertymundo.com
0% foreign income10% flat local1 visit / 3 yrs
UAE — Zero Tax Deep Dive
UAE has no personal income tax at any level. This applies to all residents regardless of nationality or income source.
Personal income tax: 0% on all income
Capital gains tax: 0% (no CGT)
Inheritance tax: 0%
Dividend/interest tax: 0%
Corporate tax: 9% on profits exceeding AED 375,000 (~$102K); Qualifying Free Zone entities = 0%
VAT: 5% standard rate
US persons: Still owe US taxes — UAE income must be reported on US 1040; FEIE or Foreign Tax Credit may apply
Source: mof.gov.ae
Personal income tax: 0% on all income
Capital gains tax: 0% (no CGT)
Inheritance tax: 0%
Dividend/interest tax: 0%
Corporate tax: 9% on profits exceeding AED 375,000 (~$102K); Qualifying Free Zone entities = 0%
VAT: 5% standard rate
US persons: Still owe US taxes — UAE income must be reported on US 1040; FEIE or Foreign Tax Credit may apply
Source: mof.gov.ae
0% personal tax0% capital gains9% corporate
Cyprus — Non-Dom Regime
Cyprus's Non-Domiciled status grants 17 years of exemption from Special Defence Contribution (SDC) on dividends and interest.
SDC for Non-Dom residents: 0% on dividends and passive interest
GHS (health) contribution: 2.65% on dividends (capped)
Income tax: 0% on income up to €19,500; graduated above
Corporate tax: 12.5% (lowest in EU)
Conditions: Tax resident in Cyprus (60+ days/yr); not tax resident elsewhere; not Cyprus-domiciled for 17+ years
Duration of Non-Dom benefit: 17 years from first election
Source: cyprustaxlife.com
SDC for Non-Dom residents: 0% on dividends and passive interest
GHS (health) contribution: 2.65% on dividends (capped)
Income tax: 0% on income up to €19,500; graduated above
Corporate tax: 12.5% (lowest in EU)
Conditions: Tax resident in Cyprus (60+ days/yr); not tax resident elsewhere; not Cyprus-domiciled for 17+ years
Duration of Non-Dom benefit: 17 years from first election
Source: cyprustaxlife.com
0% SDC dividends17-year window12.5% corporate
Georgia — Virtual Zone & Territorial Tax
Georgia offers a compelling combination: visa-free long stays, a territorial tax system, and a Virtual Zone for IT businesses at 0% corporate tax.
Personal income tax: 20% flat on Georgia-sourced income
Foreign income: Not taxed — purely territorial
Micro Business status: Sole traders with annual turnover <500 GEL (~$183K) pay 1% flat
Small Business status: Up to 500K GEL/yr — 3% flat on turnover
Virtual Zone (IT companies): 0% corporate tax on revenue from foreign clients
Dividend withholding: 5% from company to individual
Property transfer tax: 0% (no stamp duty)
Source: Revenue Service of Georgia (rs.ge)
Personal income tax: 20% flat on Georgia-sourced income
Foreign income: Not taxed — purely territorial
Micro Business status: Sole traders with annual turnover <500 GEL (~$183K) pay 1% flat
Small Business status: Up to 500K GEL/yr — 3% flat on turnover
Virtual Zone (IT companies): 0% corporate tax on revenue from foreign clients
Dividend withholding: 5% from company to individual
Property transfer tax: 0% (no stamp duty)
Source: Revenue Service of Georgia (rs.ge)
1% micro business0% Virtual Zone20% on local income
Portugal — NHR Regime (IFICI 2024)
Portugal's revamped NHR regime (now called IFICI/NHR 2.0, effective 2024) targets qualified professionals and investors with a flat 20% tax rate.
Qualified applicants: Researchers, tech workers, startup founders, highly qualified professionals
Income tax rate: 20% flat on Portuguese-sourced income (vs. standard 48% top rate)
Foreign income: Generally exempt from Portuguese tax during the 10-year NHR period
Duration: 10 years, non-renewable
Application: Must apply in year 1 of tax residency
US impact: Foreign tax credit may offset — consult US expat CPA
Source: Fragomen — Portugal NHR
Qualified applicants: Researchers, tech workers, startup founders, highly qualified professionals
Income tax rate: 20% flat on Portuguese-sourced income (vs. standard 48% top rate)
Foreign income: Generally exempt from Portuguese tax during the 10-year NHR period
Duration: 10 years, non-renewable
Application: Must apply in year 1 of tax residency
US impact: Foreign tax credit may offset — consult US expat CPA
Source: Fragomen — Portugal NHR
20% flat rateForeign income exempt10-year window
Thailand — Remittance-Based Foreign Income
Foreign income is taxed only if earned from 1 Jan 2024 onward AND remitted into Thailand — a remittance-based system.
System: Remittance-based for foreign income
Brackets: 0–35% progressive (exempt to THB 150K; top 35% over THB 5M)
Foreign income: Taxed only if earned post-2024 AND remitted; non-residents taxed on Thai-source only
Residency trigger: 180+ days in a calendar year
Source: PwC Thailand · rd.go.th
System: Remittance-based for foreign income
Brackets: 0–35% progressive (exempt to THB 150K; top 35% over THB 5M)
Foreign income: Taxed only if earned post-2024 AND remitted; non-residents taxed on Thai-source only
Residency trigger: 180+ days in a calendar year
Source: PwC Thailand · rd.go.th
0–35% bracketsRemittance rule180-day rule
Malaysia — Territorial System
Foreign-sourced income taxed only if received in Malaysia. Several relocation incentive regimes available.
System: Territorial
Brackets: 0–30% progressive (residents); non-residents flat 30%
Special regime: 15% flat under Returning Expert Programme (5 yrs); Iskandar/Forest City incentives
Residency trigger: 182+ days in a calendar year
Source: PwC Malaysia · hasil.gov.my
System: Territorial
Brackets: 0–30% progressive (residents); non-residents flat 30%
Special regime: 15% flat under Returning Expert Programme (5 yrs); Iskandar/Forest City incentives
Residency trigger: 182+ days in a calendar year
Source: PwC Malaysia · hasil.gov.my
Territorial0–30% brackets182-day rule
Panama — Strict Territorial
Only Panama-source income is taxed; foreign income is never taxed regardless of remittance.
System: Territorial
Brackets: 0% to $11K; 15% to $50K; 25% above
Foreign income: 0% — never taxed
Residency trigger: More than 183 days in the year
Source: PwC Panama · dgi.mef.gob.pa
System: Territorial
Brackets: 0% to $11K; 15% to $50K; 25% above
Foreign income: 0% — never taxed
Residency trigger: More than 183 days in the year
Source: PwC Panama · dgi.mef.gob.pa
0% foreignTerritorial183-day rule
Costa Rica — Territorial
Only Costa Rica-source income is taxed; foreign income falls outside the territorial scope.
System: Territorial
Brackets: 0–25% progressive (self-employed, 2026; top 25%)
Foreign income: 0% — only local-source income taxed
Residency trigger: More than 183 days in the fiscal period
Source: PwC Costa Rica · hacienda.go.cr
System: Territorial
Brackets: 0–25% progressive (self-employed, 2026; top 25%)
Foreign income: 0% — only local-source income taxed
Residency trigger: More than 183 days in the fiscal period
Source: PwC Costa Rica · hacienda.go.cr
0% foreignTerritorial183-day rule
Uruguay — Territorial (Source Principle)
Mostly source-based, but the principle is widened to tax certain foreign items (movable-asset passive income).
System: Territorial with limited foreign inclusions
Brackets: 0–36% progressive on labour income (IRPF); flat 12% on capital income
Foreign income: Movable-asset passive income included since 2011
Residency trigger: More than 183 days (sporadic absences counted)
Source: PwC Uruguay · DGI gub.uy
System: Territorial with limited foreign inclusions
Brackets: 0–36% progressive on labour income (IRPF); flat 12% on capital income
Foreign income: Movable-asset passive income included since 2011
Residency trigger: More than 183 days (sporadic absences counted)
Source: PwC Uruguay · DGI gub.uy
0–36% labour12% capital183-day rule
Greece — Worldwide + Expat Incentives
Residents taxed on worldwide income, but three powerful special regimes exist for new residents.
System: Residential (worldwide)
Brackets: 9–44% progressive (top 44% over €60K)
Special regimes: Art. 5A non-dom €100K/yr flat on foreign income (15 yrs); Art. 5B pensioners 7% flat (15 yrs); Art. 5C 50% exemption on Greek employment income (7 yrs)
Residency trigger: Physical presence + centre of vital interests (commonly 183 days)
Source: PwC Greece · AADE (Arts. 5A/5B/5C)
System: Residential (worldwide)
Brackets: 9–44% progressive (top 44% over €60K)
Special regimes: Art. 5A non-dom €100K/yr flat on foreign income (15 yrs); Art. 5B pensioners 7% flat (15 yrs); Art. 5C 50% exemption on Greek employment income (7 yrs)
Residency trigger: Physical presence + centre of vital interests (commonly 183 days)
Source: PwC Greece · AADE (Arts. 5A/5B/5C)
9–44% brackets50% exempt 7y€100k non-dom
Bulgaria — 10% Flat Tax
The EU's lowest flat personal income tax rate. Residents taxed on worldwide income.
System: Residential (worldwide)
Rate: Flat 10%
Foreign income: Worldwide for residents; non-residents on Bulgarian-source only
Residency trigger: More than 183 days in any 12-month period
Source: PwC Bulgaria · nra.bg
System: Residential (worldwide)
Rate: Flat 10%
Foreign income: Worldwide for residents; non-residents on Bulgarian-source only
Residency trigger: More than 183 days in any 12-month period
Source: PwC Bulgaria · nra.bg
10% flatWorldwide183-day rule
Romania — 10% Flat Tax
Flat 10% income tax with exceptions for dividends, capital gains, property and gambling.
System: Residential
Rate: Flat 10% (exceptions apply)
Foreign income: Romanian-domiciled nationals taxed on worldwide income (foreign salary for work abroad exempt)
Residency trigger: More than 183 days in any 12 consecutive months
Source: PwC Romania · ANAF
System: Residential
Rate: Flat 10% (exceptions apply)
Foreign income: Romanian-domiciled nationals taxed on worldwide income (foreign salary for work abroad exempt)
Residency trigger: More than 183 days in any 12 consecutive months
Source: PwC Romania · ANAF
10% flatWorldwide183-day rule
Hungary — 15% Flat Tax
Flat 15% personal income tax with generous family/age allowances. Residents taxed on worldwide income.
System: Residential (worldwide)
Rate: Flat 15%
Capital gains: Taxed separately at 15%
Residency trigger: 183+ days (also permanent home/centre of vital interests)
Source: PwC Hungary
System: Residential (worldwide)
Rate: Flat 15%
Capital gains: Taxed separately at 15%
Residency trigger: 183+ days (also permanent home/centre of vital interests)
Source: PwC Hungary
15% flatWorldwide183-day rule
Estonia — 22% Flat Tax
Simple flat 22% system with no special expatriate rules. Residents taxed on worldwide income.
System: Residential (worldwide)
Rate: Flat 22%
Special regime: None — no special rules for expatriates
Residency trigger: More than 183 days in any 12-month period (any part of a day counts)
Source: PwC Estonia
System: Residential (worldwide)
Rate: Flat 22%
Special regime: None — no special rules for expatriates
Residency trigger: More than 183 days in any 12-month period (any part of a day counts)
Source: PwC Estonia
22% flatWorldwide183-day rule
Serbia — 10–20% Flat Rates
Flat rates by income type (10–20%) plus a supplementary annual PIT. Residents taxed on worldwide income.
System: Residential (worldwide)
Rates: Flat 10–20% by income type; supplementary annual PIT 10% then +15% above higher thresholds
Foreign income: Worldwide for residents; non-residents on Serbian-source income
Residency trigger: 183+ days over a 12-month period
Source: PwC Serbia
System: Residential (worldwide)
Rates: Flat 10–20% by income type; supplementary annual PIT 10% then +15% above higher thresholds
Foreign income: Worldwide for residents; non-residents on Serbian-source income
Residency trigger: 183+ days over a 12-month period
Source: PwC Serbia
10–20% flatWorldwide183-day rule
Turkey — Worldwide + Foreign Exemption
Residents taxed on worldwide income, but a foreign-income exemption regime exists under Law No. 7582.
System: Residential (worldwide)
Brackets: 15–40% progressive (from 1 Jan 2026; top 40% over TRY 5.3M)
Special regime: Foreign income exemption under Law No. 7582
Residency trigger: 6 months (183 days) in a calendar year
Source: PwC Turkey
System: Residential (worldwide)
Brackets: 15–40% progressive (from 1 Jan 2026; top 40% over TRY 5.3M)
Special regime: Foreign income exemption under Law No. 7582
Residency trigger: 6 months (183 days) in a calendar year
Source: PwC Turkey
15–40% bracketsWorldwide6-month rule
Colombia — Worldwide (Fiscal Residents)
Fiscal residents taxed on worldwide income; non-residents only on Colombian-source income.
System: Residential (worldwide for fiscal residents)
Brackets: 0–39% progressive (general basket; top 39%)
Foreign pension: Exempt up to 1,000 UVT
Residency trigger: 183+ days (aggregate) within any 365 consecutive days
Source: PwC Colombia · DIAN
System: Residential (worldwide for fiscal residents)
Brackets: 0–39% progressive (general basket; top 39%)
Foreign pension: Exempt up to 1,000 UVT
Residency trigger: 183+ days (aggregate) within any 365 consecutive days
Source: PwC Colombia · DIAN
0–39% bracketsWorldwide183-day rule
Mexico — Worldwide (Residents)
Residents taxed on worldwide income; residency based on establishing a home/centre of vital interests.
System: Residential (worldwide)
Brackets: 1.92–35% progressive (residents, 2026); non-residents 0/15/30%
Foreign income: Worldwide for residents; non-residents on Mexican-source only
Residency trigger: Home in Mexico; if home elsewhere too, centre of vital interests
Source: PwC Mexico
System: Residential (worldwide)
Brackets: 1.92–35% progressive (residents, 2026); non-residents 0/15/30%
Foreign income: Worldwide for residents; non-residents on Mexican-source only
Residency trigger: Home in Mexico; if home elsewhere too, centre of vital interests
Source: PwC Mexico
1.9–35%WorldwideHome/vital test
Vietnam — Worldwide (Residents)
Residents taxed on worldwide income wherever paid/received; non-residents on Vietnam-related income.
System: Residential (worldwide)
Brackets: 5–35% progressive on employment (residents); non-residents flat 20%
Foreign income: Worldwide for residents wherever paid
Residency trigger: 183+ days in the calendar year or in 12 months from arrival
Source: PwC Vietnam
System: Residential (worldwide)
Brackets: 5–35% progressive on employment (residents); non-residents flat 20%
Foreign income: Worldwide for residents wherever paid
Residency trigger: 183+ days in the calendar year or in 12 months from arrival
Source: PwC Vietnam
5–35% resident20% non-res183-day rule
Croatia — Worldwide (Residents)
Residents taxed on worldwide income. Note: Croatia's separate digital-nomad residence permit exempts foreign income.
System: Residential (worldwide)
Brackets: Progressive 15–33% (rate set locally; split at €60K; default 20%/30%)
Foreign income: Worldwide for residents; non-residents on Croatian-source only
Residency trigger: Based on residence/habitual abode
Source: PwC Croatia
System: Residential (worldwide)
Brackets: Progressive 15–33% (rate set locally; split at €60K; default 20%/30%)
Foreign income: Worldwide for residents; non-residents on Croatian-source only
Residency trigger: Based on residence/habitual abode
Source: PwC Croatia
15–33% bracketsWorldwideResidence-based
Czech Republic — 15% / 23%
Two-band system: 15% up to ~CZK 1.76M, 23% above. Residents taxed on worldwide income.
System: Residential (worldwide)
Brackets: 15% up to ~CZK 1,762,812; 23% above
Foreign investment income: May sit in a separate 15% tax base
Residency trigger: 183+ days in a calendar year
Source: PwC Czech Republic
System: Residential (worldwide)
Brackets: 15% up to ~CZK 1,762,812; 23% above
Foreign investment income: May sit in a separate 15% tax base
Residency trigger: 183+ days in a calendar year
Source: PwC Czech Republic
15% / 23%Worldwide183-day rule
Poland — 12% / 32%
Progressive 12%/32% with a PLN 30K tax-free amount. Business options include 19% flat and lump-sum regimes.
System: Residential (worldwide)
Brackets: 12% up to PLN 120K; 32% above; PLN 30K tax-free
Business options: 19% flat or 12–14% lump-sum for some professions
Residency trigger: More than 183 days OR centre of vital interests
Source: PwC Poland
System: Residential (worldwide)
Brackets: 12% up to PLN 120K; 32% above; PLN 30K tax-free
Business options: 19% flat or 12–14% lump-sum for some professions
Residency trigger: More than 183 days OR centre of vital interests
Source: PwC Poland
12% / 32%Worldwide183-day rule
Spain — Beckham Law Regime
The "Beckham Law" special inbound-expatriate regime taxes Spanish employment income at a flat 24% and exempts foreign income.
System: Residential (worldwide) — standard ~19–47%
Beckham regime: Flat 24% on Spanish employment income up to €600K (47% above); foreign income exempt, up to 6 years
Savings income: 19–30%
Residency trigger: More than 183 days in a calendar year
Source: PwC Spain · Beckham Law 2026
System: Residential (worldwide) — standard ~19–47%
Beckham regime: Flat 24% on Spanish employment income up to €600K (47% above); foreign income exempt, up to 6 years
Savings income: 19–30%
Residency trigger: More than 183 days in a calendar year
Source: PwC Spain · Beckham Law 2026
19–47% bracketsBeckham 24% 6y183-day rule
Italy — Impatriate & HNWI Regimes
Two attractive regimes: 50% exemption for impatriate workers, and a flat foreign-income tax for HNWIs.
System: Residential (worldwide) — IRPEF 23%/33%/43%
Impatriate regime: 50% exemption on Italian employment income (60% with a minor child), capped €600K, 5 years
HNWI regime: Flat foreign-income tax €200K/yr (€300K for residency from 1 Jan 2026), 15 years, €25K per family member
Residency trigger: More than 183 days, or residence/domicile in Italy
Source: PwC Italy · Italy impatriate
System: Residential (worldwide) — IRPEF 23%/33%/43%
Impatriate regime: 50% exemption on Italian employment income (60% with a minor child), capped €600K, 5 years
HNWI regime: Flat foreign-income tax €200K/yr (€300K for residency from 1 Jan 2026), 15 years, €25K per family member
Residency trigger: More than 183 days, or residence/domicile in Italy
Source: PwC Italy · Italy impatriate
23–43% brackets50% exempt 5y€200k HNWI
US citizens cannot escape US taxation by moving abroad. The US taxes citizens and green card holders on worldwide income regardless of where they live. FBAR, FATCA, and Form 1040 obligations follow you globally. Work with a qualified US expat tax attorney before any relocation.