Italy’s Tax Incentives for Individuals Relocating: An Updated Overview of the Impatriate and New Resident Tax Regimes
Italy continues to strengthen its position as a destination for international talent and high-net-worth individuals by offering two distinct and advantageous tax regimes:
The Impatriate Tax Regime and the New Resident Tax Regime. While both provide substantial tax benefits, they are tailored to different profiles and relocation objectives.
Designed for employees, self-employed professionals, and entrepreneurs moving to Italy after a period of residence abroad, this regime grants a 50% exemption on Italian taxable income, increased to 60% for individuals with minor children. The benefit applies for 5 years.
This regime targets individuals with significant personal wealth who transfer their tax residence to Italy. It provides a lump-sum tax of €200,000 per year on all foreign-source income, regardless of the actual amount. The regime is valid for up to 15 years and may be extended to family members, subject to an additional €25,000 per person per year.
Both regimes offer compelling opportunities for individuals seeking tax-efficient relocation options. However, eligibility and long-term implications should be assessed carefully to ensure optimal use and full compliance.
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