Preferential Tax Program for individuals relocating to Italy

Italy has recently introduced one of the most appealing tax benefits for foreigners in Italy, aimed at attracting individuals who wish to move to the country (“lavoratori impatriati”).

Tax benefits 

  • This preferential tax regime offers significant tax benefits for foreigners relocating to Italy. Individuals, whether employees or self-employed, can enjoy a 70% tax exemption on income derived from Italian-sourced employment and self-employment. In certain regions, including Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, and Sicily, this exemption increases to 90%.

 

  • The tax break for foreigners applies for five fiscal years following the transfer of tax residency to Italy. Under specific conditions, such as having dependent children or investing in property in Italy, the tax benefit can be extended for an additional five years.

Requirements for eligibility

  1. To have been tax resident outside of Italy for at least two years prior to the transfer to Italy;
  2. To remain tax resident in Italy for at least two tax years;
  3. 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;
  4. 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:

  1. hold a university degree of at least three years duration and perform an employment or self-employment activity in Italy;
  2. 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.

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