Someone with a good salary offer in Milan will do the sums twice: once with the standard income tax brackets, once with the regime impatriati. The second can be spectacularly lower. It is Italy's main tax incentive for skilled workers who move in, and, like most incentives, it is generous to those who read the small print. Here is what the impatriati regime says, according to the Agenzia delle Entrate.
What does the impatriati regime give you?
The current version applies to people who transfer their tax residence to Italy from the 2024 tax year (article 5 of legislative decree 209/2023). It reduces the taxable amount of two kinds of income produced in Italy:
- employment income, and
- self-employment income from the arts and professions,
so that only 50% of the amount counts for tax, up to €600,000 a year. If you move with a minor child, or a child is born or adopted during the regime, only 40% is taxable, as long as the child is resident in Italy.
Income above the cap is taxed in the ordinary way, and the taxable share is taxed at the normal IRPEF rates (23%, 33% and 43% in 2026), plus regional and municipal surcharges. The regime can be combined with other relocation incentives if the requirements of each are met.
Who qualifies for the impatriati regime?
The Agenzia lists four conditions:
- You commit to being a tax resident in Italy for at least four years.
- You were not an Italian tax resident in the three tax periods before the move. If you work in Italy for the employer you had abroad, or for a company of its group, the period rises to six tax periods; to seven if you had already worked for that employer or group in Italy. Group companies are those under common control or with a control relationship.
- You do most of your work in Italy during the tax year.
- You meet the "high qualification or specialisation" requirements of legislative decrees 108/2012 and 206/2007. In general terms that points to higher-education qualifications or established professional experience, but the decrees are the reference, so ask a tax adviser to check your profile.
For Italians returning home, the Agenzia treats registration with AIRE (the register of Italians abroad), or residence abroad under a treaty, as non-residence. This guide is aimed at newcomers of any nationality.
How long does it last, and what if you leave early?
The relief covers the tax year of the move plus the four that follow. If you do not keep Italian tax residence for at least four years, you lose the benefits and must repay the tax saved, with interest. That is the biggest trap: a job that ends in year three, a move to another country, a posting abroad can all cost you real money.
For those who moved in 2024, the Agenzia mentions a three-year extension if they bought a main home in Italy by 31 December 2023 and within the 12 months before moving. That is a specific transitional rule, relevant only to that group.
Eligibility is rarely clear-cut: an employer abroad that belongs to the same group as your Italian one, a past stay in Italy you had forgotten, a role that is part Italian and part remote. If you want a first read on your chances of qualifying, and a list of documents to prepare, describe your case to Moovy, Hello Expat's AI assistant. Before you rely on the regime, have an Italian accountant confirm it, because it commits you for years.
How do you claim the regime?
The reduction applies to the income you earn in Italy, in practice through your employer's payroll or in your tax return. Keep proof of your previous non-residence (foreign residence certificates, tax notices), your contract, and evidence of your qualification. Nothing replaces checking the exact procedure with your employer's payroll office or your accountant for the year you start.
From 1 January 2027, the old income tax code of 1986 is replaced by a new consolidated text (legislative decree 117 of 19 June 2026). The three relocation regimes are largely carried over; the impatriati regime moves to article 225, and references to the old articles disappear.
What mistakes do people make with the regime?
- Leaving before four years. You lose the relief and repay it with interest.
- Forgetting the longer non-residence period when moving within the same group of companies.
- Assuming it covers everything. It reduces Italian employment and professional income; foreign income and assets remain subject to residence rules, as explained in taxes in Italy for new residents.
- Treating it like a pension regime. Retirees have a different option, the 7% tax described in flat tax for retirees in Italy.
- Overlooking the other taxes. Social security still applies to a salary; see working in Italy.
For very large foreign incomes, a third regime exists: flat tax for new residents in Italy. The three do not suit the same person, which is why picking the right one before you move matters.
How much does the impatriati regime change?
The regime halves the taxable amount of your Italian work income, up to €600,000 a year, and only 40% is taxable for a family with a minor child. Because the part that leaves the tax base is the top of your income, the one taxed at the highest rates, the saving grows with your salary and shrinks for modest incomes. Social contributions are not reduced. Before you sign a contract on the strength of the regime, ask your employer's payroll office or an Italian tax adviser to calculate it with your real salary and family situation.
Who is the impatriati regime really meant for?
The Agenzia delle Entrate's description points to workers who are qualified or specialised, who move their tax residence to Italy, and who commit to staying for at least four years. That is a profile of employees recruited abroad by an Italian company, or professionals who set up in Italy, rather than someone who works remotely for a foreign employer, or someone who wants a short stay. For a remote worker, the "work mostly in Italy" requirement and the nature of the income need careful reading; the Agenzia's pages cover employment and professional income produced in Italy.
If you are an Italian citizen coming home, the same pages explain that registration with AIRE (the register of Italians abroad), or residence in another country under a double tax treaty, counts as non-residence for the test. Other nationalities show their previous tax residence with certificates from the foreign tax authority.
What documents should you gather before you move?
Because the test is mostly about the past, you want proof early:
- certificates of tax residence abroad for the relevant years, and tax assessments;
- your employment contract or a document proving your activity in Italy;
- diplomas and a CV showing qualification or experience;
- if you move within a group, a list of the group companies involved and your earlier employment history with them.
Having the file ready also helps your employer's payroll office, which is the first party that must understand what applies. See working in Italy for the contract side and taxes in Italy for the filing calendar.
Is this the same as other special tax regimes for expats in Italy?
No. People search for it under several names: the Italy tax break for workers moving in, the 50% tax exemption, the lavoratori impatriati (literally "workers who have moved in") scheme, or simply the special tax regime for expats in Italy. They all refer to the same article 5 of legislative decree 209/2023 for those arriving from the 2024 tax year. It is a different tool from the pensioners' regime and from the high-income flat tax, and it does not apply to income from abroad, so check the name of the regime in any offer or ruling you read before you rely on it.