International Employees fiscal regime in Italy: do you meet the requirements?

Foreign workers with three years of residence abroad are eligible for exclusive tax incentives when relocating to Italy. Qualified individuals can benefit from a remarkable 50% reduction in income tax for up to five years under this legislation. This reduction applies to earnings from employment, self-employment, and research-related economic activities. 

To qualify, individuals must hold a bachelor’s degree or higher and have relevant professional experience or research experience gained overseas.

What are the requirements for the bonus dedicated to workers wishing to relocate to Italy?

Foreign citizens wishing to access Italian benefits as employees, freelancers, or individual entrepreneurs must meet the following requirements:

• Have been residents outside Italy for at least three consecutive years before transferring to Italy;
• Commit to transferring their tax residence and/or business activities to Italy for at least five consecutive years after relocation, under penalty of repaying the benefits received up to that point;

Ensure that the work activity, for which the transfer is taking place, will be predominantly carried out on Italian soil.

Workers benefiting from tax incentives must maintain tax residency in Italy, according to Italian legislation. Additionally, all income generated outside the Italian territory will be fully taxed; namely, without any reduction.

For citizens of the European Union or non-EU states with conventions or tax agreements with Italy, the following requirements are necessary:

• Holding a Bachelor’s degree and having resided in a foreign country working (as an employee, self-employed professional, or personal business entrepreneur) for at least 24 consecutive months prior to relocation;
• Have resided abroad for at least 24 consecutive months before relocating to Italy with the purpose of obtaining academic qualification (Bachelor’s or Master’s degree, for example).

In both cases, to benefit from a partial exemption from income taxes in Italy, European citizens must hold a bachelor’s degree.