The Inbound Workers Regime caters to individuals qualifying as tax residents in Italy as of the tax year 2024, with special consideration for those transferring their registered residence by December 31, 2023.

Tax Exemption Benefits

‍Under this revised framework, eligible individuals can enjoy a 50% tax exemption on employment/self-employment income produced in Italy, up to an annual income of €600,000 for 5 years. For those meeting specific criteria, the exemption increases to 60%, with 40% being taxable. This enhanced benefit is granted if:

  • The individual moving to Italy has at least one minor dependent child.
  • The individual becomes a parent (even on an adoptive basis) during the 5-year period of tax relief.

For the latter condition, the dependent child must qualify as an Italian resident for the entire duration of the tax benefit.

Conditions to Access the Regime

‍Eligible individuals must fulfill the following conditions:

  • Move their tax residency to Italy with a commitment to qualify as an Italian tax resident for at least 4 consecutive tax years. Failure to meet this commitment results in the retroactive forfeiture of the entire benefit.
  • Engage in employment/self-employment activities primarily in Italy.
  • Qualify as highly skilled, as defined for immigration legislation purposes.
  • Have qualified as an Italian tax non-resident for a specified number of years before moving to Italy. The duration of non-residence depends on the nature of the employment activity:
    • 3 years as an Italian tax non-resident if the employment activity is not rendered to a company within the same Group the individual was working for before moving to Italy.
    • 6 years as an Italian tax non-resident if the employment activity is rendered to a company within the same Group.
    • 7 years as an Italian tax non-resident if the employment activity is rendered to a company within the same Group, and the individual was employed in Italy for the same Group before moving abroad.

Transitional Provisions

‍The Inbound Workers Regime includes two transitional provisions linked to the transfer of residence to Italy:

  • Individuals who moved to Italy during 2023 and registered within the population records by December 31, 2023, can still benefit from the previous version of the special tax regime.
  • An exceptional extension of the initial 5-year period to a further 3 years (8 years in total) is granted for eligible individuals who purchased real estate in Italy for use as their primary residence before December 31, 2023, and register within the population records during 2024.

At "Move To Dolce Vita," we are dedicated to assisting wealthy individuals and international families seamlessly navigate Italy's Inbound Workers Regime. Before making the move to Italy, it is crucial to provide a tailor-made tax analysis.

Understanding all the details is key to ensuring individuals benefit correctly from the regime, avoiding double taxation, and executing a smooth exit from the foreign country.

Our team is here to provide a specific tax analysis and assist in all aspects of the relocation to Italy. For personalized guidance and expert advice, contact our team to embark on your journey to a tax-friendly Dolce Vita in Italy.