Italy
Expatriate Workers Regime

Overview

Italy offers an attractive tax incentive known as the ‘Impatriate Regime’ to encourage qualified individuals and professionals to relocate and work in Italy. This regime allows a 50% tax exemption on employment and self-employment income earned in Italy for up to 5 years, or 60% in special cases (e.g., with minor children).

The benefit can be extended to 10 years if certain conditions are met, making Italy one of the most appealing destinations for skilled expatriates in Europe.

Benefits

50% exemption on gross employment, self-employment, or business income earned in Italy (up to €600,000/year).

Increased to 60% if relocating with a dependent minor or if one is born/adopted during the regime.

Applies for 5 years, extendable to 10 years under specific family or property conditions.

No prior approval required — applied directly via the tax return.

Applies to both EU and non-EU citizens.

Valid for both employees and self-employed individuals (freelancers, consultants, directors).

No industry-specific restrictions — open to a wide range of professions.

Full access to Italian residency and public healthcare system (standard rules).

Can be combined with other residence permits (e.g., digital nomad, intra-company).

Attractive option for highly qualified individuals under EU Directives 108/2012 and 206/2007.

Requirements and Procedures

Become tax resident in Italy and stay more than 183 days per year.
Not have been tax resident in Italy for the past 3 tax years (up to 6–7 in some employer-linked cases).
Maintain Italian tax residence for at least 4 consecutive years.
Work or run a business in Italy (employment, self-employment, directorship, freelancing).
Relocate with the intention to live in Italy long-term.
Elect the regime in the first year via Modello Redditi PF or employer communication.
No need to file for advance ruling (interpello), but retain documentation.
Extension to 10 years possible if you purchase a primary residence or have a dependent child.
Must perform substantial work physically in Italy.
Applies to both returning Italians and foreign nationals.

How Charfort can help you?

Assess your eligibility and timing to enter the Impatriate Regime.

Assist with relocation planning, residency and compliance in Italy.

Structure contracts (employment, freelance) to maximize tax benefits.

Prepare and file your annual Italian tax return with the correct regime election.

Help coordinate employer communication and payroll integration.

Support on extension options (child birth, property purchase).

Advise digital nomads and tech workers on compatibility with other permits.

Monitor residency criteria and center of vital interests.

Stay updated on legislative changes to ensure long-term compliance.

Advise on cross-border income, social security and treaty application.

Frequently asked questions

Everything you need to know about the process.

Who can benefit from the Impatriate Regime in Italy?

Anyone relocating to Italy who hasn’t been tax resident there in the past 3 years and performs work or business in Italy.

What income qualifies for the exemption?

Employment, self-employment, and individual business income earned in Italy, up to €600,000/year.

Can the benefit increase to 60%?

Yes, if relocating with a minor child or if a child is born/adopted during the regime period.

How long does the regime apply?

5 years initially, extendable to 10 years under specific personal or housing conditions.

Is prior approval from the tax authority required?

No, the regime is self-applied through the income tax return, but documentation must be retained.

Is it compatible with freelance or remote work?

Yes, provided substantial work is performed in Italy and the income is generated there.

What happens if I move away before 15 years?

The regime ends when you leave Italy, with no retroactive tax effects.

Can I partially exclude countries from the flat tax?

Yes, it’s possible to designate specific countries whose income will be taxed under normal rules.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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