EU Tax Residency in 2025: NHR, Flat Tax & Golden Visa Compared
Europe offers some of the world’s most attractive tax residency programmes for high-net-worth individuals and digital nomads. Portugal’s NHR, Italy’s Flat Tax and Spain’s Beckham Law each offer unique advantages — but choosing the right one requires careful analysis of your personal situation.
Why EU Tax Residency is Attractive
European Union residency combines a high quality of life, political stability and access to one of the world’s largest single markets — all while offering preferential tax regimes for new residents. For internationally mobile individuals, establishing tax residency in the right EU country can significantly reduce the overall tax burden on foreign income, capital gains and wealth.
Top EU Tax Residency Programmes
The NHR regime offers a 10% flat tax on foreign pension income and full exemption on most foreign-source income for 10 years. Portugal introduced a new NHR 2.0 programme in 2024 targeting specific professions and activities.
- Duration: 10 years (non-renewable)
- Requirement: become tax resident, not been resident in last 5 years
- Best for: retirees, remote workers, investors
Italy offers a €300,000 flat annual tax on all foreign-source income for new residents, regardless of amount. An additional €25,000 per family member can be included. The regime lasts up to 15 years.
- Duration: up to 15 years
- Requirement: not been resident in Italy for 9 of last 10 years
- Best for: HNWI with significant foreign income or capital gains
Spain’s special expat regime taxes employment and business income at a flat 24% rate up to €600,000 (47% above). Foreign income is generally exempt from Spanish tax for 6 years.
- Duration: up to 6 years
- Requirement: employed or self-employed in Spain, not resident in last 5 years
- Best for: executives, entrepreneurs, digital nomads
Quick Comparison Table
| Programme | Country | Tax Benefit | Duration |
|---|---|---|---|
| NHR 2.0 | Portugal | 20% flat on qualifying income | 10 years |
| Flat Tax | Italy | €300k/year on all foreign income | 15 years |
| Beckham Law | Spain | 24% flat rate up to €600k | 6 years |
| Golden Visa | Various EU | Residency via investment | Renewable |
Key Considerations Before Moving
- Exit tax in your home country — many countries impose exit taxes on unrealised gains when you cease to be a tax resident.
- US citizens cannot escape US taxation — the US taxes citizens worldwide regardless of residence. EU tax regimes work alongside, not instead of, US obligations.
- Tie-breaker rules — if you maintain connections to multiple countries, tax treaty tie-breaker rules determine your primary residence for tax purposes.
- Timing is critical — the date you establish residency affects which tax year the regime applies from. Poor timing can cost significant amounts.
How ITA Can Help
ITA International Tax & Advisor specialises in cross-border tax residency planning. Our team in Milan, London and New York guides clients through the entire relocation process — from regime selection and application to ongoing compliance in both the new and former country of residence.
Planning to relocate to Europe?
Schedule a confidential consultation with our EU tax residency specialists.
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