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In order to promote economic development and boost the real estate market, the Italian tax authority has introduced numerous benefits to assist people who have or are considering moving their residence to Italy, either for professional or personal reasons.
The relevant law, Law n. 232 of 11 December 2016 (also known as Italian 2017 budget law), has introduced three new tax rules and exemptions for three different kinds of workers. As previously mentioned, all the benefits provided, require as mandatory the transfer of the fiscal residence to Italy by the individual who wishes to benefit from them. Additionally, there are minimum periods of time that the individual must maintain residence, depending on the specific benefit granted.
1. Professors and researchers
Exemption of 90% for four years on the income generated in Italy
Requirements:
2. Workers
Exemption of 50 per cent for five years on the income generated in Italy.
2.1 Workers holding a University degree
Requirements:
2.2 “Other workers”
Requirements:
3. New residents
Substitute tax for the value of € 100.000 per year (€ 25.000 per family member) for 15 years on the income produced abroad.
Requirements:
When a business asks an employee to relocate to a foreign country for a period of time it is a significant decision and not all employees are prepared to uproot themselves and their families without compelling reasons and incentives. The Italian authorities have created extremely attractive tax benefits for individuals who are employed to work in Italy and businesses would do well to consider focussing on Italy for the overseas deployment of their staff.
For more information about relocating staff to Italy please click here