Italian Tax Benefits for New Residents

Are you looking to move in Italy for tax purpose, but someone always told you that it is expensive to be a resident and pay taxes in Italy? Think it twice.

In the last years, Italian governments started to introduce and set new tax schemes for foreigners moving their residency in Italy. So, you may fit in one of those.

Below, we will try to summarise them briefly in the main categories:

1. Tax Relief for "Impatriate" Workers

Designed for employees and self-employed professionals relocating to Italy. It introduces a 30% tax reduction on income for 5 years and can be extended for another 5 years under certain conditions.

2. Flat Tax for High-Net-Worth Individuals Wealthy Foreign residents, on certain conditions, can opt for a €200,000 flat tax on worldwide income. The scheme can apply for up to 15 years. It is an ideal scheme for wealthy individuals seeking tax simplification. Family members can join the scheme too, with a flat tax of €25,000. A preliminary assessment can be carried out with the tax office to check that all the requirements are met.

3. Tax Incentives for Researchers & Professors This scheme introduces a 90% tax exemption on income for 8 years if relocating to Italy and it has been developed to encourage academic professionals to move and work in Italy.

4. 7% Flat Tax for Foreign Pensioners An additional new scheme has been made available for retirees who want to move to Southern Italy in small towns with less than 20,000 residents. The scheme establishes a 7% tax on foreign income for 5 years, and further exemptions.

Each scheme has specific eligibility criteria, so it is important and recommended to consult experts before even thinking of moving your residency in Italy.

Further info can also be found in the official link of the Italian Tax office (Agenzia delle Entrate):

https://www.agenziaentrate.gov.it/portale/web/english/personal-income-tax-irpef

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