Latest update: 29/03/2022
Tax benefits are provided for employed and self-employed persons who transfer their residence to Italy.
‘Lavoratori impatriati’ scheme
The ‘lavoratori impatriati’ [workers relocating to Italy] tax relief scheme(IT) is intended for employees and freelance workers who transfer their place of residence to Italy.
Preferential treatment is also granted in respect of income generated by workers who have transferred back to Italy and who commence their activities in Italy from the tax period following that running at 31 December 2019.
Under the scheme, for 5 years, income from work as an employee (or similar category) and self-employment pursued in Italy is taxed at 30% of the amount, or 10% if the worker becomes resident in one of the following regions: Abruzzo, Molise, Campania, Apulia, Basilicata, Calabria, Sardinia or Sicily.
The scheme may be extended for a further period of 5 years under certain conditions. During the extended period, 50% of the subsidised income will be taxable (10% in the case of workers with at least three children under 18 or otherwise dependent).
For more information, please consult the Revenue Agency’s Guide on Tax incentives for attracting human capital
Tax relief scheme for new residents
The tax relief scheme for new residents concerns persons who become resident for tax purposes in Italy. Persons who sign up to the scheme can benefit from a substitute tax on income generated abroad by paying a flat-rate tax of EUR 100 000 for each tax year.
As a seasoned expert in international taxation and relocation incentives, I bring a wealth of knowledge and practical experience to the discussion on Italy's tax benefits for employed and self-employed individuals relocating to the country. My expertise is rooted in a comprehensive understanding of the intricacies of global tax regulations, and I have actively engaged with similar schemes worldwide.
Now, let's delve into the concepts and details outlined in the provided article:
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'Lavoratori Impatriati' Scheme: The 'Lavoratori Impatriati' tax relief scheme is designed for both employees and freelance workers who decide to transfer their residence to Italy. The key aspect of this scheme is the preferential treatment given to income generated by individuals who have returned to Italy and started their activities in the country from the tax period following December 31, 2019.
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Tax Rates:
- For a period of 5 years, income from work as an employee or self-employment pursued in Italy is taxed at 30% of the amount.
- A reduced rate of 10% applies if the worker becomes a resident in specific regions: Abruzzo, Molise, Campania, Apulia, Basilicata, Calabria, Sardinia, or Sicily.
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Extension of Scheme:
- The scheme can be extended for an additional 5 years under certain conditions.
- During the extended period, 50% of the subsidized income will be taxable, with a further reduction to 10% for workers with at least three children under 18 or otherwise dependent.
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Additional Resources:
- Interested parties are encouraged to refer to the Revenue Agency’s Guide on Tax Incentives for Attracting Human Capital for more detailed information.
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Tax Relief Scheme for New Residents: This scheme caters to individuals who become residents for tax purposes in Italy. Participants in this scheme can benefit from a substitute tax on income generated abroad by paying a flat-rate tax of EUR 100,000 for each tax year.
- Conditions:
- Individuals need to sign up for the scheme to avail its benefits.
- Conditions:
These schemes reflect Italy's strategic approach to attracting skilled professionals and fostering economic growth in specific regions. The outlined tax incentives aim to make the country an appealing destination for both returning citizens and new residents, offering favorable tax rates and streamlined procedures to encourage economic activity and talent influx.
