{"id":2684,"date":"2023-07-24T13:44:07","date_gmt":"2023-07-24T13:44:07","guid":{"rendered":"https:\/\/www.italyvisainvestments.com\/?page_id=2684"},"modified":"2026-03-27T08:01:26","modified_gmt":"2026-03-27T08:01:26","slug":"special-tax-regime-for-inbound-workers","status":"publish","type":"page","link":"https:\/\/www.italyvisainvestments.com\/en\/relocation-and-life-in-italy\/tax-benefits-for-foreigners-in-italy\/special-tax-regime-for-inbound-workers\/","title":{"rendered":"Special tax regime for inbound workers"},"content":{"rendered":"
Tax benefits<\/div>\n

Special tax regime for inbound workers<\/h1>\n
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Article 16 of Legislative Decree no. 147\/2015<\/b><\/span> introduced, starting from the 2016 tax year, the so-called \u201cspecial tax regime for inbound workers\u201d<\/b><\/span> in order to encourage the transfer to Italy of highly skilled and qualified workers, thus fostering the technological, scientific, and cultural development of our country.<\/p>\n

The inbound workers tax regime provides tax benefits not only for Italians returning to their country but also for foreigners in Italy, consisting of a reduced taxation regime on income produced in the national territory.<\/p>\n

An essential requirement to benefit from the inbound workers regime is to have transferred one\u2019s tax residence to Italy, committing to reside there for a set number of tax periods while carrying out work activity mainly within Italian territory.<\/p>\n

This tax relief scheme for foreigners in Italy, or for Italians returning from abroad, has undergone subsequent amendments. Initially, the law provided for a 50% tax exemption on income produced in Italy in favor of the following categories of workers:<\/p>\n

\u2022 managers and highly qualified and specialized workers;<\/p>\n

\u2022 inbound workers holding a university degree;<\/p>\n

\u2022 inbound self-employed workers.<\/p>\n

Starting from 2019, with Article 5 of Decree-Law no. 34\/2019, the percentage of tax exemption increased from 50% to 70%.<\/p>\n

Subsequently, for workers who transfer their residence to the southern regions of Italy, an even more favorable 90% exemption was introduced.<\/p>\n

With Article 5 of Legislative Decree no. 209\/2023, effective from 2024, the incentive for new beneficiaries was amended again: taxable income is now set at 50% for five tax periods, with a maximum eligible income threshold of \u20ac600,000 per year. The exemption rises to 60% if the worker moves to Italy with at least one minor child or if a birth takes place during the period of application of the regime.<\/p>\n

The new regime also provides for stricter requirements: not having been a tax resident in Italy for the previous three tax periods (instead of the previous two) and a commitment to reside in Italy for at least four years.<\/p>\n<\/div>\n

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Subjective requirements to benefit from the inbound workers regime from 2024<\/p>\n<\/h2>\n

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To be eligible, inbound workers from 2024 must meet the following requirements:<\/p>\n

\u2022 Qualification:<\/b><\/span> possess the requirements of high qualification or specialization as defined by Legislative Decree of 28 June 2012, no. 108 and Legislative Decree of 9 November 2007, no. 206, according to the criteria of Article 27-quater of the Consolidated Immigration Act, as subsequently amended by Legislative Decree of 18 October 2023, no. 152.<\/p>\n

\u2022 Tax residence:<\/b><\/span> the person must not have been a tax resident in Italy during the 3 tax periods preceding the transfer. However, the required periods of non-residence increase to 6 if the worker is hired in Italy by the same employer for whom they worked abroad or by a company belonging to the same group (as defined by Article 2359 of the Civil Code). The required periods increase to 7 if, in addition, before their transfer abroad, the worker was employed in Italy by the same employer or by a company belonging to the same group.<\/p>\n

\u2022 Duration:<\/b><\/span> to benefit from the regime, the worker must commit to being a tax resident in Italy for at least four years.<\/p>\n

\u2022 Work carried out mainly in Italy:<\/b><\/span> work activity must be carried out for the majority of the tax period within the territory of the Italian State.<\/p>\n

It is important to note that both foreign and Italian citizens can access these tax benefits.<\/p>\n

From the perspective of subjective requirements, the new regime requires possession of high qualification or specialization, which can alternatively be demonstrated through:<\/b><\/p>\n

\u2022 possession of a higher education qualification certifying the completion of a course of study of at least three years;<\/p>\n

\u2022 a higher professional qualification falling within levels 1, 2 or 3 of the ISTAT classification of professions CP 2011;<\/p>\n

\u2022 possession of the requirements provided by Legislative Decree of 6 November 2007, no. 206, for regulated professions;<\/p>\n

\u2022 a higher professional qualification proven by at least five years of relevant professional experience;<\/p>\n

\u2022 for ICT managers and specialists, a qualification proven by at least three years of experience in the last seven years.<\/p>\n<\/div>\n

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Objective requirements to qualify for the inbound worker regime<\/h2>\n
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The income covered by the inbound workers tax regime includes:<\/b><\/p>\n

\u2022 employment and equivalent income;<\/p>\n

\u2022 self-employment income deriving from the exercise of arts and professions;<\/p>\n

\u2022 business income is excluded starting from 2024, as already mentioned.<\/p>\n

Eligible income is subject to a maximum annual limit of \u20ac600,000, beyond which the benefit does not apply.<\/p>\n

Income produced abroad remains excluded, bearing in mind that employment and self-employment income are considered produced in Italy if the work is performed in Italy, even if carried out for foreign entities and remunerated from abroad.<\/p>\n

Requirement of \u201cprevalence\u201d:<\/b><\/span> the work activity must be performed for most of the tax period within Italian territory. This requirement is considered fulfilled when the activity is carried out mainly in Italy, although the legislation does not specify an exact numerical threshold of days, unlike the general criteria for tax residence.<\/p>\n

In the case where work is carried out in smart working, the place where the worker is physically present when performing the activity for which they are remunerated is considered the place of work performance. This principle makes it possible to access the inbound workers regime even when working remotely for foreign employers, provided that the work is physically performed from within Italian territory.<\/p>\n

Also included is income deriving from work activities undertaken after moving to Italy, thus allowing beneficiaries to enjoy the tax relief even for new activities started after transferring tax residence to Italy.<\/p>\n<\/div>\n

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The inbound workers regime in Italy for business income until 2023<\/p>\n<\/h2>\n

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Under the previous regime, which applied until 2023, the inbound workers regime was not limited to employment income but also extended to the business income of individual entrepreneurs.<\/p>\n

It is important to specify that the benefit applied exclusively to business income produced by an individual through the exercise of business activity in a sole proprietorship, as provided by Article 2082 of the Italian Civil Code. Business income produced by partnerships and attributed transparently to each partner, as well as business income of closely held limited liability companies whose shareholders are exclusively natural persons, were excluded from the benefit.<\/p>\n

This policy aimed to attract highly qualified workers from abroad, including those intending to start individual entrepreneurial activities in Italy, encouraging the creation of new economic initiatives and stimulating the development of the national production system.<\/p>\n

Through this regime, qualified workers coming from abroad who started an individual business activity in Italy could benefit from significant tax advantages designed to incentivize investment in our country.<\/p>\n

From 2024, business income of any kind no longer benefits from the tax relief under the inbound workers regime, representing one of the main changes introduced by the new Legislative Decree no. 209\/2023.<\/p>\n

The new regime applies exclusively to employment and equivalent income, as well as self-employment income deriving from the exercise of arts and professions, with a maximum eligible annual income threshold of \u20ac600,000.<\/p>\n

Important note:<\/b><\/span> individuals who transferred their registered residence by 31 December 2023 continue to apply the previous, more favorable regime, including the possible benefit on individual business income, while the new regime under Legislative Decree no. 209\/2023 applies only to those who transfer residence as of 1 January 2024.<\/p>\n<\/div>\n

What are the benefits of the inbound worker regime?<\/h2>\n
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Adhering to the inbound workers regime offers the advantage of reduced taxation: as of 2024, inbound individuals meeting the requirements of high qualification or specialization may benefit from the new tax relief regime, which provides for taxable income equal to 50% starting from the tax period in which the worker transfers their tax residence to Italy and for the following four tax periods.<\/p>\n

The benefit applies to employment, equivalent, and self-employment income deriving from the exercise of arts and professions produced in Italy, up to a maximum annual limit of \u20ac600,000.<\/p>\n

For workers who move to Italy with at least one minor child or who become parents during the benefit period, the relief is even more advantageous: taxable income is reduced to 40% (a 60% exemption).<\/p>\n

Compared to the previous regime, which granted a 70% exemption until 2023, the new system has stricter conditions but still provides a significant tax advantage to attract qualified workers from abroad.<\/p>\n<\/div>\n

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Extension of tax benefits under the inbound workers regime until 2023<\/p>\n<\/h2>\n

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Under the previous regime, tax benefits on employment, equivalent, and self-employment income could be automatically extended for an additional five tax periods if at least one of the following conditions was met:<\/p>\n

\u2022 workers with at least one minor child or dependent child, including those in pre-adoptive foster care;<\/p>\n

\u2022 workers who became owners of at least one residential property unit in Italy, after transferring their residence or within the previous 12 months. The property could be purchased directly by the inbound worker or by their spouse, partner, or children, even in co-ownership.<\/p>\n

During the five-year extension period, eligible income contributed to taxable income at 50% of its amount, and this percentage was reduced to 10% for workers with at least three minor or dependent children, including those in pre-adoptive foster care.<\/p>\n

It is important to note that this automatic extension was provided for under the regime in effect until 2023, while the new regime introduced from 2024 no longer provides for this possibility of automatic extension for the second five-year period.<\/p>\n<\/div>\n

Tax benefits for foreigners purchasing real estate in Italy<\/h2>\n

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An inbound worker (Italian or foreign) who purchases a property in Italy to be used as their main residence and transfers their tax residence from 2024 can obtain significant additional tax benefits; this refers to the extension of the inbound workers regime benefit for a further three tax periods<\/b><\/span>.<\/p>\n

To benefit from this extension, the residential property must have been acquired by 31 December 2023 and, in any case, within twelve months prior to transferring tax residence to Italy. The property must be used as the main residence.<\/p>\n

During the three-year extension, eligible income contributes to taxable income with a 50% inclusion rate (reduced to 40% for workers with at least one minor dependent child or who become parents during the benefit period).<\/p>\n

This extension is added to the five base years of the new inbound workers regime, bringing the total duration of the benefit to eight years for those who meet both the base regime requirements (high qualification or specialization) and the property purchase condition.<\/p>\n

It is important to emphasize that, unlike the previous regime, this extension is no longer automatic for a second five-year period but is limited to only three additional years and is subject to the purchase of the property within the specified time limits.<\/p>\n

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How to apply for the inbound worker regime<\/h2>\n
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The individual concerned must prepare all the required documentation to demonstrate compliance with the eligibility requirements. This documentation may vary depending on the applicable regime (pre-2024 or from 2024) and the person\u2019s individual circumstances, but may include documents such as:<\/p>\n

\u2022 certificate of residence abroad or registration with AIRE (Registry of Italians Resident Abroad);<\/p>\n

\u2022 diplomas, professional qualification certificates, or certifications proving high qualification or specialization;<\/p>\n

\u2022 employment contracts or employer statements;<\/p>\n

\u2022 for non-EU citizens: documentation relating to double taxation treaties between Italy and the country of origin;<\/p>\n

\u2022 for the regime applicable from 2024: any documentation relating to the purchase of residential properties for the purpose of obtaining extensions.<\/p>\n

Employees must submit a timely written request to their employer in the form of a self-declaration pursuant to Presidential Decree no. 445 of 2000. It is essential to submit the request during the tax period in which tax residence is transferred, as delays could preclude access to the regime. The employer can then apply the benefit directly in the employee\u2019s payslip.<\/p>\n

Self-employed workers can access the regime when filing their income tax return, completing the appropriate section in the RE schedule of the \u201cRedditi Persone Fisiche\u201d tax return form.<\/p>\n

If the employer was unable to apply the benefit, the taxpayer can still claim it directly in their tax return, provided all legal requirements are met.<\/p>\n

Given the complexity of Italian tax legislation and the differences between the previous regime and the new regime applicable from 2024, it is strongly recommended to rely on a professional tax advisor to ensure proper access to and use of the available benefits.<\/p>\n<\/div>\n


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Tax benefits Special tax regime for inbound workers Article 16 of Legislative Decree no. 147\/2015 introduced, starting from the 2016 tax year, the so-called \u201cspecial tax regime for inbound workers\u201d in order to encourage the transfer to Italy of highly skilled and qualified workers, thus fostering the technological, scientific, and cultural development of our country. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2677,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-2684","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/comments?post=2684"}],"version-history":[{"count":8,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2684\/revisions"}],"predecessor-version":[{"id":5360,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2684\/revisions\/5360"}],"up":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/2677"}],"wp:attachment":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/media?parent=2684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}