Italy, the French Riviera, Monaco: The Triangulation of HNWI Capital in the Mediterranean

To be verified with your accountant before publication — the only one of the 18 articles with sensitive fiscal content.

As of January 1, 2026, Italy's flat tax for new residents rises from €200,000 to €300,000 a year (€50,000 per family member, up from €25,000 previously), under the 2026 Budget Law. It's a higher threshold than before, but it remains a competitive regime compared with Monaco, where there's no personal income tax but entry requires a minimum bank deposit of €500,000 and a property with rents starting at €4,000/month or purchase prices above €50,000/sqm in the center.

Two regimes, two different logics. The Italian regime (Article 24-bis of the TUIR) taxes foreign income at a flat rate and requires not having been an Italian tax resident for at least 9 of the previous 10 years, valid for 15 tax periods — anyone who relocated by December 31, 2025 keeps the previous €200,000 threshold thanks to a grandfathering clause. Monaco instead offers full exemption on personal income, wealth and nearly all capital gains, but requires effective physical presence of at least 3 months a year.

Why they aren't really alternatives. In practice, the two regimes meet different needs more than they compete for the same client. Monaco tends to attract those seeking to zero out their personal tax burden entirely and who accept the presence requirements and the Principality's non-Schengen status. Italy, with its €300,000 flat tax, attracts those who want to keep a life and real estate wealth rooted in the country — Costa Smeralda, Milan, the territory in general.