Tax Rewarding Program for highly qualified workers relocating to Italy
Italy has recently introduced a very attractive tax rewarding system to attract “highly-qualified” workers to relocate in Italy (so-called “lavoratori impatriati”).
Tax benefits and the necessary requirements.
The rewarding system consists in a lowering of the personal income tax base to the extent of 50% and it applies from the tax year in which the transfer of tax residence in Italy occurred and for the next four taxing periods.
The “lavoratori impatriati” lose the tax benefits if the residence in Italy is not maintained in the two years after the transfer, with consequent obligation of return the unpaid taxes together with penalties and interests.
Who can qualify for the Tax Rewarding Program for highly qualified workers relocating to Italy?
Workers (employees or self-employed – Italian citizens or foreigners) that: (a) were non-residents in Italy in the five previous tax years; (b) commit to stay in Italy for two years after the transfer of residence, and (c) commit to carry out their business operations mainly in the Italian territory.
Employees must meet the additional following requirments: (a) they must have leadership roles or they must be in possession of highly-qualified requirements; (b)) the work must be carried out in a company residing in Italy by an employment relationship.
EU citizens, or citizens of non-EU States with which Italy adhered to treaties against double taxation or agreements for the exchange of information on tax matters, that: (a) have graduated and have carried out continuously abroad, in the preceding 24 months, an employment, self-employment or a business activities; or (b) carried out a study activity earning an undergraduate or postgraduate specialization.
Contact us for more information about the Italian Rewarding Program for highly qualified workers relocating to Italy.