Benefits for those who transfer residence to Italy
With the inpatriate regime, the taxable base of income from work produced in Italy is reduced by half. In some expressly provided cases, the taxable base decreases to 40 percent, so the tax relief rises to 60 percent. The benefit applies up to 600,000 euros of total annual income and lasts five tax periods in total, the year of first application plus four subsequent periods.
Beyond the limit of 600,000 euros, the excess returns to being taxed ordinarily. This framework, also common in other European countries, was designed to make returning to Italy competitive without sacrificing legal certainty and controls.
Our Firm relies on a team of experts in national and international tax law, and acts as follows:
- Eligibility pre check, we examine contracts, countries of previous residence, applicable treaties, and group structure, to prevent pitfalls on tie breakers and economic links abroad.
- Return plan, we define timing and documents for registry office, AIRE, housing, place of activity, in order to stabilize tax residence from the first year.
- Benefit application, we prepare the request to the employer for employees or the set of documents for the self-employed, aligned with the instructions of the Revenue Agency.
- Monitoring, we check each year that the requirements remain intact, especially in the case of long assignments, transnational remote working, or change of employer within the group.
- Variant management, when convenient, we assess coordination with other regimes for attracting new residents, such as the option under article 24 bis TUIR for new residents with foreign income, or the 7 percent retirees regime under article 24 ter. This comparative analysis avoids improper overlaps, optimizes the tax burden, and reduces the risk of litigation.
We work with documents, deadlines, treaties, and official practice, so that your application for the inpatriate tax regime is consistent, complete, and sustainable over time.
