Tax allowance for impatriates
The Italian government has introduced, since 2015, a particular tax relief for "Impatriate" workers.
The facility allows the partial tax exemption of employment, self-employment and business income, under specific circumstances.
That law has recently been modified and simplified to broaden the audience of the people concerned.
The requirements for accessing the benefit are complex and vary depending if the worker has entered to Italy before 30 April 2019 or after.
- Not having been resident in Italy, in the 5 fiscal years prior to the entry;
- Commit to reside in Italy for two years;
- The work activity must be carried out for more than 183 days, for each fiscal year, in the Italian territory (the high specialization requirement falls).
- Are in possession of a degree, have carried out an employment, employee or self-employed activity or business activity outside their country of origin and Italy in the last 24 months;
- Have continuously carried out a study activity outside their country of origin and from Italy in the last 24 months, earning a degree or postgraduate specialization.
Allowance of 70% or 90%
EU citizens (Italians and foreigners) and non-EU citizens, who entered Italy after 30 April 2019
And who are resident in the territory of the State for more than 183 days a year (Art. 2 TUIR), can enjoy the reduction of 70% of the employment or self-employment or business income, earned in Italy.
An exemption of 90% has also been provided for in the event that the worker resides in one of the following Italian regions: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, Sicily.
Duration of the relief
The relief is generally applied for the 5 fiscal years starting from the year of transfer of the residence to Italy.
- The worker buys a residential property after the transfer to Italy or in the 12 months prior to the transfer;
- The worker has at least one minor or dependent child (born before the transfer or on condition that he or she is born within the first five years of the benefit).
- The worker has at least 3 minor or dependent children (born before the transfer or on condition that they are born within the first five years of the benefit).