Second Tax Incentive: Tax benefits for “IMPATRIATES” Workers

Law Decree No. 34 of April 30th, 2019 (hereinafter, the “Growth Decree”) introduced new relevant tax incentives for inbound workers, entrepreneurs, researchers and professors who transfer their tax residency to Italy starting from the fiscal year 2020.

However, from 2024 there may be some updates.

In particular, basing on new updates although still in draft, a taxpayer could be subject to Italian income tax only on 50% of income (i.e., exemption of 50% of the taxable income from employment, self-employment or distributed profits from Italian companies) if collectively, a taxpayer fulfils the following conditions:

– has not been tax resident in Italy in the three years preceding the transfer of tax residence to Italy;

– the work activity must be carried out in Italy under a new employment relationship established with an entity different from the foreign employer before the transfer, which is not part of its own group;

– the workers must possess high qualification or specialized requirements;
mainly works or performs activity in Italy (at least 183 days during each fiscal year concerned).

Please note that the impatriate tax regime could be applicable for a period of 5 tax years.