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13 Low-Tax Regimes in High-Tax Europe: Expert Guide · IMI Podcasts

• 0:00
  SPEAKER_00: You probably love the European lifestyle, but don't want to move there because you can't stomach its excruciating tax rates.
• 0:06
  SPEAKER_00: We're talking 30, 40, even 56% in some countries.
• 0:11
  SPEAKER_00: And because of local income levels, the top tax brackets often kick in at far lower levels than in, for example, the United States.
• 0:18
  SPEAKER_00: But what if I told you there's a way to have your cake and eat it too?
• 0:22
  SPEAKER_00: Enjoy the delights of the European way of life without paying European level tax rates.
• 0:27
  SPEAKER_00: In IMI's guide to 13 special regimes for low-tax living in high-tax Europe, you'll learn which countries outside of the inherently low-tax states like Monaco, Cyprus, and Hungary offer these innovative programs and how you can qualify.
• 0:42
  SPEAKER_00: Let's start with Italy, world-renowned for its top flight gastronomy, exquisite nature and culture, and one of the most punitive tax systems in Europe.
• 0:50
  SPEAKER_00: The top marginal personal income tax rate gets 45%.
• 0:53
  SPEAKER_00: And when you add regional and municipal surcharges, you're looking at close to 50%.
• 0:58
  SPEAKER_00: This is why well-heeled Italians have a long tradition of relocating to Switzerland and Monaco.
• 1:04
  SPEAKER_00: But Italy has suffered from brain drain and a collapsing birth rate long enough.
• 1:08
  SPEAKER_00: The country didn't want to lose wealthy foreigners to its neighbors anymore.
• 1:12
  SPEAKER_00: So in 2017, they created a lump sum tax regime specifically designed for high net worth individuals moving to Italy.
• 1:19
  SPEAKER_00: Under this 15-year regime, you pay a flat 200,000 euros per year, regardless of whether you earn 1 million, 10 million, or 100 million from foreign sources.
• 1:30
  SPEAKER_00: Cristiano Ronaldo famously used this regime to pay an effective tax rate of less than 0.5% during his tenure at Juventus.
• 1:38
  SPEAKER_00: Under the lump sum regime, you're also exempt from Italian wealth taxes on foreign assets, inheritance, and gift taxes on foreign property, any overseas holding reporting.
• 1:48
  SPEAKER_00: Your worldwide income tax outside of Italy is covered by that single pain.
• 1:52
  SPEAKER_00: Anything you earn inside of Italy, it's taxed at normal rates.
• 1:56
  SPEAKER_00: Now, the current government has proposed increasing the sum to 300,000 euros after raising it from 100,000 euros just a year ago.
• 2:04
  SPEAKER_00: But this is not confirmed yet, and there's still time to qualify for the existing regime and lock in the 200,000 euro lump sum for the next 15 years.
• 2:13
  SPEAKER_00: But what if 200,000 euros is too steep?
• 2:15
  SPEAKER_00: Italy has three other regimes that might work for your situation.
• 2:18
  SPEAKER_00: The laboratory and patriati regime targets a completely different profile.
• 2:23
  SPEAKER_00: Professionals, executives, remote workers, and entrepreneurs who want to actively work in Italy.
• 2:28
  SPEAKER_00: Normally, employment income in Italy gets hammered with those progressive rates we mentioned.
• 2:32
  SPEAKER_00: A high-earning executive could easily lose half their salary to taxes.
• 2:36
  SPEAKER_00: But under this regime, 50% of your income is simply exempt from taxation.
• 2:41
  SPEAKER_00: If you have minor children living with you, that exemption jumps to 60%.
• 2:44
  SPEAKER_00: To qualify, you need to have been a resident for at least three years before moving to Italy.
• 2:49
  SPEAKER_00: Commit to staying for four years, and work predominantly inside the country.
• 2:52
  SPEAKER_00: The regime lasts five years and applies to income up to 600,000 euros annually.
• 2:58
  SPEAKER_00: Italy also has a niche program for relocating researchers and professors who can access 90% tax relief in Italy for up to 13 years.
• 3:07
  SPEAKER_00: Plus, it's compatible with the laboratory patriotic regime mentioned a minute ago.
• 3:12
  SPEAKER_00: But again, this regime is for very particular cases.
• 3:15
  SPEAKER_00: For those looking for more flexibility, Italian tax expert Federico Samuiraghi recently reported on IMI that Italy is also exploring a special tax incentive for digital nomads in the country.
• 3:26
  SPEAKER_00: We'll have more on this later.
• 3:28
  SPEAKER_00: Finally, retirees or those living off investments are also in luck.
• 3:31
  SPEAKER_00: If you move to a municipality with under 20,000 residents in southern Italian regions like Sicily, Sardinia, Calabria, Puglia, or Campania, you pay just 7% on all your foreign income under the Southern Italy flat tax scheme.
• 3:46
  SPEAKER_00: Pensions, dividends, capital gains, rental income from abroad, all of it taxed at just 7% for 10 years.
• 3:53
  SPEAKER_00: If you're interested in moving to Italy and benefiting from one of these special tax regimes, check out Italy's elective residency and investor visas on IMI's website and find the investment migration professional who can help you pair residency with low taxes.
• 4:06
  SPEAKER_00: Let's cross the Adriatic to Greece, another country of glittering coastlines, cities steeped in ancient history and a long tradition of torturous tax burdens.
• 4:15
  SPEAKER_00: The top marginal rate in Greece reaches 44%, and for years this has kept wealthy foreigners away, despite the obvious lifestyle appeal.
• 4:23
  SPEAKER_00: Yet, as Novak Djokovic's recent relocation to Athens shows, this is changing fast.
• 4:28
  SPEAKER_00: Greece has watched Portugal and Malta attract thousands of wealthy investors with special tax programs, so they decided to compete.
• 4:36
  SPEAKER_00: The Greek non-Dom regime for investors works similarly to Italy's lump sum system.
• 4:41
  SPEAKER_00: Invest 500,000 euros in Greek assets, and you can pay a flat€100,000 per year regardless of your worldwide income, exempt from inheritance, gift, and parental grant taxes as well.
• 4:53
  SPEAKER_00: This covers all foreign sourced earnings for up to 15 years.
• 4:57
  SPEAKER_00: The investment obligation is flexible in up to three separate investments, even through a company where you're a majority shareholder, if you'd like, you'd have three years from application to complete the requirement.
• 5:07
  SPEAKER_00: Greece has another regime that offers even lower rates for a different profile.
• 5:11
  SPEAKER_00: The non-DOM regime for retirees offers a flat 7% tax on foreign sourced income.
• 5:16
  SPEAKER_00: Pensions, dividends, interest, capital gains, annuities.
• 5:20
  SPEAKER_00: If it originates outside Greece, it's taxed at 7%.
• 5:23
  SPEAKER_00: Moreover, if you've already paid tax on that income in another country, you can apply for credits against the 7% Creek tax.
• 5:30
  SPEAKER_00: So if your home country withheld 5% on your dividends, you're only paying an additional 2% to Greece.
• 5:35
  SPEAKER_00: This regime lasts 15 years and requires the same seven of eight years non-residency rule as the non-DOM regime for investors.
• 5:43
  SPEAKER_00: The main limitation is that unlike the investor regime, this one does not extend to family members.
• 5:48
  SPEAKER_00: Each person needs to qualify independently.
• 5:51
  SPEAKER_00: For non-EU nationals looking to access these regimes, Greece offers the Golden Visa, currently the region's most popular Golden Visa, as well as the Financially Independent Person Visa, which offers residency to anyone with a modest passive income.
• 6:04
  SPEAKER_00: You can find detailed breakdowns and specialists for both on IMI's program pages.
• 6:08
  SPEAKER_00: Now let's move to Ireland.
• 6:10
  SPEAKER_00: On the surface, Ireland seems like an unusual choice, not known for sunshine or Mediterranean lifestyle, but it has something no other country on this list offers: an unlimited duration, non-DOM regime with no minimum charge.
• 6:22
  SPEAKER_00: The UK famously had a non-DOM regime that attracted wealthy foreigners for centuries, but they tightened it and tightened it until they couldn't any longer, adding minimum charges, time limits, and finally abolishing it altogether in 2025.
• 6:35
  SPEAKER_00: Under Ireland's non-DOM remittance basis regime, which is modeled on the UK original, you only pay tax on income you actually bring into Ireland.
• 6:43
  SPEAKER_00: Foreign income that stays abroad is exempt, as is foreign capital gains.
• 6:47
  SPEAKER_00: Funds you accumulated before moving to Ireland are classified as capital, not income.
• 6:51
  SPEAKER_00: So you can remit them to Ireland freely without tax consequences.
• 6:55
  SPEAKER_00: There's no minimum annual charge, there's no time limit on how long you can benefit.
• 6:59
  SPEAKER_00: And unlike most regimes on this list, there's no requirement that you be a non-resident for a specific period before moving to Ireland.
• 7:06
  SPEAKER_00: The only requirement is that you're not domiciled in Ireland, meaning you don't intend to remain in Ireland permanently.
• 7:12
  SPEAKER_00: In other words, you need to maintain clear ties to a foreign country, which an Irish advisor on imidaly.com can help you establish and preserve.
• 7:20
  SPEAKER_00: This makes Ireland potentially the most favorable long-term jurisdiction in Europe for someone with substantial foreign investment income who wants to live in an English-speaking EU country.
• 7:30
  SPEAKER_00: One notable catch though, after five years of residency, you become subject to Irish gift and inheritance tax on non-Irish assets.
• 7:38
  SPEAKER_00: But there are planning strategies to extend this exemption.
• 7:40
  SPEAKER_00: For residency, non-EU nationals can explore Ireland's independent means visa, which requires an annual income of 50,000 euros and sufficient assets to purchase a home.
• 7:50
  SPEAKER_00: Heading south to Malta, this tiny Mediterranean archipelago has built an entire economy around attracting foreign investors.
• 7:57
  SPEAKER_00: English is an official language, the climate is clement, and the tax system is famously flexible.
• 8:02
  SPEAKER_00: Malta's resident non-DOM system is philosophically similar to Ireland's, but is a bit more structured.
• 8:07
  SPEAKER_00: If you're resident in Malta but not domiciled there, you only pay Maltese tax on income that arises in Malta or is remitted to Malta.
• 8:15
  SPEAKER_00: Foreign source income kept abroad is completely exempt.
• 8:18
  SPEAKER_00: Foreign capital gains, whether remitted or not, falls entirely outside Maltese jurisdiction and taxation.
• 8:24
  SPEAKER_00: Like Ireland, there's no time limit on this status.
• 8:27
  SPEAKER_00: And unlike the abolished UK system, Malta has shown no indication of changing its approach.
• 8:32
  SPEAKER_00: The regime requires only a nominal 5,000 euro minimum annual charge for those claiming the status.
• 8:37
  SPEAKER_00: The key is ensuring you don't accidentally acquire domicile in Malta.
• 8:42
  SPEAKER_00: But Malta has another regime specifically targeting high-earning professionals.
• 8:45
  SPEAKER_00: The highly qualified persons rules offer a flat 15% tax rate on employment income for new resident executives in sectors like aviation, financial services, gaming, and technology.
• 8:57
  SPEAKER_00: In 2025, the minimum income threshold is approximately 100,000 euros.
• 9:02
  SPEAKER_00: This increases a few thousand euros or so each year.
• 9:04
  SPEAKER_00: And the regime covers income up to 5 million euros, with any excess actually exempt from tax entirely.
• 9:11
  SPEAKER_00: The reduced rate applies for five years for EU nationals and four years for non-EU nationals, renewable thereafter.
• 9:17
  SPEAKER_00: Malta offers several residency pathways for those non-EU nationals, including the permanent residence program and a few other less popular routes.
• 9:25
  SPEAKER_00: Spain presents a fascinating case.
• 9:27
  SPEAKER_00: It has one of the most aggressive enforcement agencies and some of the highest taxes in Europe, up to 47%, plus regional surcharges that can push the total over 50% in regions like Catalonia.
• 9:39
  SPEAKER_00: Yet one specific regime has attracted everyone from footballers to tech executives.
• 9:43
  SPEAKER_00: The Beckham Law, named after one of its first beneficiaries, David Beckham, allows qualifying individuals to be taxed as non-residents despite living in Spain.
• 9:52
  SPEAKER_00: Ironically, professional athletes were excluded from the program a few years ago.
• 9:56
  SPEAKER_00: So Beckham himself wouldn't qualify today.
• 9:58
  SPEAKER_00: Under this regime, Spain may not levy a tax on your foreign earnings, foreign source dividends, capital gains, interest, rental income, and royalties are completely exempt from Spanish taxation.
• 10:09
  SPEAKER_00: To qualify, though, you need to relocate to Spain due to an employment contract, corporate position, remote work arrangement, entrepreneurial activity, or highly qualified professional service.
• 10:19
  SPEAKER_00: And your Spanish employment income is taxed at just 24%, up to 600,000 euros, with 47% applying above that threshold.
• 10:28
  SPEAKER_00: The regime lasts six years and can extend to family members.
• 10:32
  SPEAKER_00: After the country abolished its golden visa in 2025, Spain offers the non-lucrative visa for those with passive income, an entrepreneur visa for business builders, and the digital no man visa for remote workers.
• 10:42
  SPEAKER_00: Check them out on our program pages.
• 10:44
  SPEAKER_00: Poland might surprise you on this list.
• 10:46
  SPEAKER_00: It's not typically associated with tax-friendly jurisdictions, but in recent years, Poland has introduced a lump sum regime specifically targeting high net worth individuals from abroad.
• 10:55
  SPEAKER_00: The system works like this pay a flat 200,000 slote per year, about 47,000 euros, and your entire foreign income is covered, regardless of the actual amount.
• 11:05
  SPEAKER_00: That's less than a quarter of Italy's 200,000 euro lump sum.
• 11:09
  SPEAKER_00: Family members can even opt in for roughly 20,000 euros each.
• 11:13
  SPEAKER_00: The 10-year regime exempts you from reporting foreign income and sources unless specifically requested by tax authorities as well.
• 11:20
  SPEAKER_00: To qualify, you must also invest at least 23,000 euros to promote Polish economic growth, education, or cultural heritage.
• 11:27
  SPEAKER_00: Now, Poland may not have the Mediterranean lifestyle of Italy or Greece, but for someone seeking EU residency in an increasingly important economy, safe, developed country with low taxes and a low cost of living in Central Europe, it's worth considering.
• 11:41
  SPEAKER_00: Poland offers a straightforward business activity residency program for non-EU nationals.
• 11:46
  SPEAKER_00: Finally, let's talk about Switzerland, home to the grandfather of preferential tax regimes.
• 11:51
  SPEAKER_00: While not an EU member, Switzerland remains one of the most desirable places for investors and high net worth individuals to live in Europe.
• 11:58
  SPEAKER_00: And its lump sum taxation system, known as the forfait fiscal, has attracted wealthy foreigners for over a century.
• 12:05
  SPEAKER_00: The concept is elegant.
• 12:06
  SPEAKER_00: Instead of taxing your income, Switzerland taxes your expenditure.
• 12:09
  SPEAKER_00: Your annual tax is calculated based not on what you actually earn, but on your living expenses, around seven times your annual rent or the rental value of your property.
• 12:18
  SPEAKER_00: The more frugal you are relative to your income, the lower your effective tax rate.
• 12:23
  SPEAKER_00: Say you earn 10 million euros annually from investments, but your living expenses are only 1 million euros.
• 12:29
  SPEAKER_00: In the canton of O, you'd pay roughly 467,000 euros in tax, an effective rate of 4.67% on your actual income.
• 12:38
  SPEAKER_00: Choose a lower tax canton like Zoo, and that rate drops to under 3%.
• 12:43
  SPEAKER_00: The requirements are strict, however.
• 12:45
  SPEAKER_00: You cannot have been a Swiss citizen or a Swiss resident in the previous 10 years or gainfully employed in Switzerland.
• 12:51
  SPEAKER_00: And depending on the canton and your nationality, you'll need minimum taxable income ranging from 500,000 US dollars to about 1.2 million US dollars, annual living expenses of at least 500,000 US dollars, and net worth of at least 8 million US dollars.
• 13:07
  SPEAKER_00: While six cantons have abolished this slump sum regime, 20 cantons still offer, including Geneva, Bo, Ticino, and Zoo.
• 13:16
  SPEAKER_00: Unlike most regimes on this list, you can benefit from the forfait fiscal indefinitely.
• 13:21
  SPEAKER_00: For residency, non-EU nationals typically need to obtain a residence permit without gainful activity, which requires either being over 55 with ties to Switzerland or demonstrating significant fiscal benefit to the destination canton.
• 13:34
  SPEAKER_00: Most applicants secure a lump sum tax agreement with their intended canton before applying for the permit.
• 13:40
  SPEAKER_00: So, yes, high tax Europe doesn't have to be so for you.
• 13:44
  SPEAKER_00: 13 special tax regimes across eight European countries can legally reduce your tax burden to single digits while you enjoy one of the highest quality of life regions in the world.
• 13:54
  SPEAKER_00: We created a free, downloadable guide with all of this information.
• 13:58
  SPEAKER_00: To get it, you just have to fill out the form on imidail.com/slash newsletter.
• 14:02
  SPEAKER_00: It breaks down every regime in detail with eligibility requirements, tax rates, and qualifying income categories.
• 14:09
  SPEAKER_00: If you're serious about exploring these options, you'll want professional guidance, not just our information that should not be construed, by the way, as financial or tax advice.
• 14:17
  SPEAKER_00: The tax advisors and immigration lawyers who helped us create this guide are available for free through our IMI Pro network on the website.
• 14:25
  SPEAKER_00: In this next video, you'll enjoy an analytical look at eight countries that will tax you to help.
• 14:30
  SPEAKER_00: Avoid these and stick to the special tax regimes in your own.