What is the impatriate workers tax regime?

Starting from the 1st of January 2017, for the income deriving from employment or self-employment activities in Italy, by Italian and foreign workers who decide to move their fiscal residence to Italy, new important tax benefits have been introduced and eventually even increased with the Legislative Decree no. 34/2019, mainly in the form of a tax exemption.

What does this tax benefit consist of and to whom is it addressed?

This new regime provides for a tax exemption of a 70% (90% in case the residence is elected in a Region of the South of Italy) of the income deriving from working activities and related to the previous 5 years from the acquisition of the Italian fiscal residence, at the following conditions:

  • the worker has a University degree;
  • the worker has performed employment or self-employment activities abroad for at least 24 months;
  • the worker has transferred his fiscal residence in Italy;
  • the worker actually performs employment or self-employment activities in Italy.

Importantly, also those who perceive business income may benefit from the program, provided that they transfer their residence from 2020.

How can I get the Italian fiscal residence?

You can get the Italian fiscal residence:

  • De facto: staying in the Italian territory for at least 183 days during the calendar year;
  • By law: subscribing your residence to the competent public office of your domicile city. If you are a European citizen your residence subscription can be done on the basis of your accommodation in Italy, according to the free move and establishment principle.
  • If you are a third-country national extra EU, you can obtain your residence after your Italian stay permit.