Preferential Tax Program for individuals relocating to Italy
Italy has recently introduced one of the world’s most attractive preferential tax programs in order to attract individuals that want to relocate in Italy (“lavoratori impatriati”).
The Preferential Tax regime for “inbound workers” grants to individuals (employees or self-employed) that want to relocate to Italy a 70% tax exemption on Italian-sourced employment (and assimilated) and self-employment income (90% in case of transfer of the tax residence in one of the following regions: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria Sardinia and Sicily);
The preferential tax regime applies for 5 fiscal years from the transfer of the tax residence in Italy. However, it can be extended of additional 5 years under certain circumstances (e.g. dependent children or a home property investment in Italy).
Requirements for eligibility
- To have been tax resident outside of Italy for at least two years prior to the transfer to Italy;
- To remain tax resident in Italy for at least two tax years;
- To be hired by an Italian tax resident employer, or by a branch in Italy of a foreign company, or by a company of the same group;
- To work in the Italian territory for at least 183 days in each year.
The preferential tax regime applies also to the “inbound workers” (EU Citizens or citizens of a Country with whom Italy has a Double Tax Treaty or alternatively, a Tax Exchange of Information Agreement), who meet all the following requirements:
- hold a university degree of at least three years duration and perform an employment or self-employment activity in Italy;
- have performed a work activity, or alternatively must have spent a study period outside Italy for at least 24 months before the transfer to Italy.
Contact us for more information about the Italian Rewarding Program for highly qualified workers relocating to Italy.