Do you know that the Italian tax system provides fiscal incentives for people who decide to move their residence to and work in Italy?
This so-called New Residents Tax Regime has been in place in Italy since 2017, granting foreigners and Italian expats attractive tax benefits upon their arrival or return.
What does this tax incentive consist of?
Since 2019 expats can count on a tax exemption of 70% for 5 consecutive years following their relocation, which means that only 30% of a worker’s taxable income is due.
The tax exemption is further increased to 90% for those who move to the Southern regions of Italy.
This is a very favourable incentive considering that progressive income tax rates vary from 23% to 43% in Italy.
As mentioned, this tax regime applies for 5 years. However, it can be extended to 10 years if certain conditions are met, e.g. buying a residential property or having an underage child.
What are the requirements to apply?
- Become an Italian tax resident
- Having worked or studied abroad
- Currently working in Italy as an employee, self-employed or entrepreneur
N.B. This regime applies to Italian inpatriates as well. Professional field and level of education are not relevant.
Contact us to obtain this benefit!