“Impatriates” – 70%/90% Tax break to attract “human capital” to Italy – pre 2024 Rules

The Italian Council of Ministers in a Press Release no 54 of 16 October 2023 has proposed a significant  reform of the Italian Impatriates Regime.

The new rules will, subject to Parliamentary approval and if enacted as currently proposed, apply to workers who transfer their tax residency to Italy with effect from FY 2024.

The new rules also contain a proposal to modify the Italian test of tax residence.

For further information please read here


Details of the pre 2024 regime

The Italian Government has in place a special tax regime designed to encourage the movement of “human capital” to Italy (lavoratori impatriati”).

  • The current regime provides that 70% of qualifying income from employment carried out in Italy is exempt from income tax.  So only 30% of gross salary/net profit  is liable to income tax.  100% of salary continues to be liable to social security under normal rules.
  • The exempt portion is 90% (so 10% taxable)  if you take up residence in one of the regions of Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, Sicily
  • The regime applies for five consecutive accounting periods, until revoked, or until the conditions for the relief cease to apply, and can be extended for a further five years if certain conditions are met.
There are separate but connected regimes for sports professionals, teachers/professors and researchers.

Conditions for the relief

  • A University decree/highly specialized qualification. This condition does not apply for Italian citizens. If you have a degree from outside Italy you should  request a Dichiarazione di Valore from the Italian consulate for the jurisdiction in which the institution awarding your degree is situated. This a certification that the degree is bona fide;
  • The work is performed prevalently in Italy.  This is generally interpreted as requiring that you spend more time, in any tax year, working in Italy than anywhere else;
  • You must have been tax resident outside Italy in for two full tax periods preceding the year in which you transfer to Italy.
  • Non Italian citizens who are citizens of a country with which Italy has a double tax treaty  need to be in a position to prove that they were working outside Italy for two full tax years, or studying full time abroad for the same period.  People studying at Italian institutions prior to starting work in Italy do not appear to qualify for the relief.
  • You must commit to reside in Italy for at least two years – this means, according to the Tax Agency, you must remain tax resident in Italy for two full tax years and work in Italy for the greater part of those two years,  or risk losing the relief and paying the extra tax due plus normal penalties;
  • You need to be tax resident in Italy for the whole of the first tax year in which you start work, otherwise the relief will not take effect until the start of the next calendar year. If you move in the latter half of any year, you will pay tax in full on any earnings for the year you move and the relief will not be available until the start of the following year (and that will be the first of the five for which the relief applies);
  • According to Tax Agency guidelines, moving your residence to Italy must be made in connection with a new job.  It must be a new job, not a continuation of a prior employment carried outside Italy. This condition appears to apply only to individuals in employment not self employment and it is not clear if it applies only to individuals who have been previously resident and working Italy who transfer back to Italy after a period of working on assignment for a group of companies.
  • If you are self employed you cannot use, in the Tax Agency’s view, the Regime Forfettario in the first year(s) of tax residence and then switch to the Impatriates’ Regime for the remainder of the five year term.   If you go over the Euro 85,000 threshold on the Regime Forfettario in any year you go on to the normal regime for the self employed without being able to benefit from the Impatriates Regime, even if you are still in the first five year period of Italian Residence.
The conditions for the relief are intricate and need to be verified on an individual basis, case by case. The definition of the conditions is often the subject to a technical analysis of the legislation, Tax Agency guidance and court decisions. 

Social Security and Wealth Tax

The exemption applies only to income taxes. It does not apply to statutory social security contributions (pension and healthcare) which will be calculated on 100% of salary.

Nor does the special regime provide any exemption from Italy’s foreign asset reporting requirements or reduction of  wealth tax generally applicable to people who are tax resident in Italy for any year. 

Extension for a further five years

The income tax exemption applies for a further five tax periods following the end of the first five year period to an individual worker:


  • with at least one minor (under 18) or dependent  (over 18 but earning less that the relevant annual financial thresholds for children; and
  • who becomes the owner of at least one residential property in Italy after moving (or in the  12 month period prior to becoming tax resident);
  • during the extension period, the tax exemption drops to 50%, but can increase to 90% for impatriates who purchase real estate in Italy in the first five year period and who at the end of that period have at least three dependent children under the age of 18.
As regards pre 2020 arrivers, the possibility has been granted for them to extend the relief for the further five year period, subject to payment of an amount equal to 10% or 5% – depending on the requirements possessed – of the facilitated income relating to the year preceding that in which the option is exercised. The measure does not apply to professional sportsmen and women.  Payment needs to be made by 30 June of the year following the year in which the first period of use of the “expatriate workers” scheme ended.  The employee should ask their employer to take advantage of the extension by means of a specific written request prior to the start of the second five year period.


The possibility of extension for pre 2020 arrivers is limited in the legislation to Italian citizens registered in the AIRE prior to the move at the outset of the first five year term and other EU citizens only. Non EU citizens may anyway have the right to extension dependent on non discrimination provisions of Italy’s treaties with certain other countries.

How to claim the relief

If you are an employee you should make a written letter of request (self certifying that you meet all the requisites) to your employer, ideally before receipt of your first instalment of annual salary in the first tax year that the relief applies – although adjustment via a future payslip for the same year may be possible.   For the self-employed (and those employees who have not presented the letter of request in time) the benefit can be claimed in the relevant annual tax return which will generate the refund either via a payslip, a payment from the authorities or credit to offset future tax liabilities. We can assist with the refund claim.

If you would like advice on whether you qualify for the relief and/or a pre-compiled copy of the letter you need to send your employer please get in touch. 

Legislation and guidance (mainly in Italian)


Decree of 03/06/2011 Identification of the categories of beneficiaries of the tax incentives referred to in Article 2 of Law No. 238 of 30 December 2010. 

Decree 26 May 2016  Min. Economia Provisions implementing the special scheme for impatriated workers, referred to in Article 16 of Legislative Decree 14 September 2015, no. 147

Interpello (Replies to Requests for Official Ruling)

Resolution no. 72, 26 September  2018  – Work activity performed in Italy and abroad for companies belonging to a multinational group;

Risposta no. 272 -114/2018 Impatriates Regime not available where no “connection” between transfer of residence and new job in Italy. Taxpayer coming to Italy in search of new employment.

Resolution no. 51, 6 July 2018   – Tax residence abroad before impatriation – 2 complete tax years required;

Risposta no. 492/2019 – assignment to France  – importance of lack of continuity;

Risposta no. 495/2019 – taxpayer coming from Ireland – taxed in full on first year (as non resident), commencement of special regime starting from first year of tax residence and following four years;

Risposta no. 497/2019 – taxpayer working abroad, not registered with the AIRE;

Risposta no. 59/2020 – Timing of the benefit – interaction between time of starting work and first year of tax residence  – importance of claiming relief either by request to the employer or in tax return for first period of residence or lose – possibility of claiming relief for remaining years;

Risposta no. 533/2020 – Two years residence abroad for study purposes (Master’s Degree) not sufficient;

Risposta no. 42/2021 – Employee assigned abroad, returning to Italy – importance of non continuity;

Risposta no. 458/2021 – Tax treatment of income from employment paid to resident and non-resident individuals who due to the Covid emergency performed their work remotely in Italy, instead of the foreign country to which they had been posted and in which they usually worked (no discussion of availability of Impatriates’ Relief);

Risposta no. 596/2021  – Impatriates’ regime available for employees working remotely for non Italian companies.

Risposta 626/2021Tax treatment of income from employment received by a nonresident individual who, due to the Covid emergency, performed their work remotely from Italy,  instead of in the foreign country in which they were resident and normally working (no discussion of availability of Impatriates’ Relief);

Risposta n. 703/2021 – requirements, exclusions and timings for taxpayers interested in the 5 year extension

Risposta n. 854/2021 Application of Impatriates Regime to Stock Option plans

Risposta n. 119/2022  – Return of employee from assignment abroad, continuing on same terms of employment, regime not applicable.

Risposta n. 159/2022  – Return of employee from assignment abroad, continuing on same terms of employment, regime not applicable – useful discussion of the “continuity” principal.

Risposta n. 172/2022 – UK citizen arriving pre-2020 admitted possibility of five year extension due to non discrimination provisions of EU/Italy withdrawal agreement.

Risposta n. 321/2022 Dual Italian/non EU citizen, a pre-2020 arriver,  denied 5 year extension due to not having been registered in the AIRE prior to transfer to Italy.

Risposta n. 460/2022 – The self employed cannot switch from regime forfetario to Impatriates Relief in the first five years after transferring residence to Italy

13 Comments on “Impatriates” – 70%/90% Tax break to attract “human capital” to Italy – pre 2024 Rules

  1. I am moving Italy by May 2022 and my wife is not moving with me as of now. She will join me end of 2023 or 2024 Q1 as per family reunion visa. In that case, am I eligible to avail this benefits? Thanks.

    • Whether or not you are tax resident in Italy depends on a series of factors of which registering as resident is certainly one. Your family situation is of relevance but is one factor among many and on its own cannot prevent you from considered tax resident in Italy, but taken with other factors may do so.

    • To get the relief you should be registered as resident with any italian comune (municipality) including municipalities in the Autonomous Province of Bolzano/Alto Adige.

  2. To extend the 5 year, in addition to paying the 5-10% tax, is it possible to gain EU citizenship through Italy (family history)?

  3. Greetings
    Does this reduction apply to a soggionata for many years but had a university degree in her county some years ago?

    • If you are prevented from claiming the extension as a non EU citizen, then gaining Italian citizenship before the end of the five year period will entitle you to extend. You will to check the timescales both for the minimum period of residence (which are defined depending on your family situation) and for the timescale required being making the application for citizenship and its grant (which varies according to a series of factors)

    • Not sure what a soggionata is. You need to be tax resident in Italy in the first year that the relief is to apply and the easiest way to prove this is by applying to be registered as resident with your local comune. If you are not registered as resident you can still be considered tax resident in Italy, if you have your centre of vital interests and habitual abode (only) in Italy and have the right to reside in Italy vai a permesso di soggiorno. However if you are not registered as resident you can expect the Tax agency to make enquiries as to your resdeintials tatus and ask why you do not fulfil your legal obligation to register as resident. The Tax Agency have spent many years trying to prove that individuals (mainly well known sports professionals and performers) were actually tax resident in Italy even if purporting to be resident abroad, and the resulting case law will be useful in proving that an individual is tax resident in Italy even if not registered as resident.

  4. I moved to italy at the end of 2020 after completing a bachelor degree in the UK. I received my permesso di soggiorno in July 2021, and I have completed a masters degree here in Italy. Can I still benefit from this relief now I have started working in Italy, even if its 2 years after I changed residency to italy? Obviously I would only benefit from the relief until 2026 (5 years after my residency was granted). I was strugglin to understand if I had to start work immediately after receiving my residency, or it was ok to wait to start. Thanks!

  5. My wife and I work as freelance translators. I am getting my Italian citizenship soon. We think of Moving to Basilicata, Calabria. We’ve been doing this full-time for the past 12 years. The tax relief is the reason for us to move to Italy. Does this tax relief apply to us? Thaanks

    • If you meet the conditions as set out in my blog post, and get the timing right then yes it should apply. But it would be a good to double check and collate the documentation in support in case the Italian Tax Agency want evidence that you meet the conditions – certified degree certificates, proof of residence and working outside Italy for the tax years before your move. It is best to time the move at calendar year end and you will both have to be able to legally work in Italy – not a problem if you have citizenship, but your wife, if not an EU citizen, will need to apply for a stay permit before she can start work. INPS the Italian social security have also recently confirmed that Italian social security is due on the 10% (since your are in Calabria) of profits – i.e. the same base as your tax is calculated. we are still working through the implications of the INPS statement which came somewhat out of the blue – previous guidance suggested that the social security contributions were based on 100% of profits. You will need to register for VAT as you start work in Italy, and hence should consider if Italian must be added to your invoices, probably only an issue if you are working for private clients (not VAT registered businesses in the EU). You also need to consider that as tax residents of Italy you may be liable to Italian wealth tax on any non Italian located assets.

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