Benefits for transferees of residence to Italy

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.