Impatriate tax regime: The new 2024 rules
The well-known tax regime dedicated to expatriates relocating to Italy for work has attracted foreign workers to Italy for years, but now it has undergone significant changes following the 2024 budget law. These changes bring about notable differences compared to the previous version of the decree, with noticeable effects in the transition from 2023 to 2024.
As before, the impatriates’ regime applies to taxpayers who transfer their tax residency to Italy and they work for most of the tax year in the Italian territory
Among the most relevant differences compared to 2023, we find:
NEW RESIDENTS’ TAX REGIME
Increased to 90% for those relocating to Southern Italy
Increased to 60% when relocating with a minor child or in case of birth or adoption during the benefit period
Minimum Residence Abroad
High qualification or specialization needed
Commitment to Stay in Italy
Annual Income Limit
- Income from dependent work and pensions
- Income from self-employment
- Income from business
- Income from dependent work and pensions,
- Income from self-employment,
- Income from business
Working for the same employer
Unlike the previous version, the new rules do not prohibit access to the regime for individuals who were employed abroad by the same employer or within the same group. However, they require a more extended period of foreign residence to enjoy the benefits of the regime:
- Six tax periods if the worker was not previously employed in Italy for the same employer or a group company.
- Seven tax periods if the worker was previously employed in Italy for the same employer or a group company before transferring abroad.
The new impatriates’ regime includes a safeguard clause to protect those who relied on the 2023 formulation. Specifically, the rules of the 2023 regime continue to apply to workers who transferred their official residence to Italy by December 31, 2023.
The differences from 2023 are evident, with significantly tighter conditions for accessing the regime. These new rules will greatly limit the ability to access the scheme by reducing the pool of people who will actually be able to benefit from it.
Income Taxed Expat Italy / Income Taxed Expat Italy