International tax law
Tax incentives for relocating to Italy
Italy offers several tax benefits to individuals who move their tax residence here. We assess which regime may apply to you and support your relocation from planning through to the first tax return.
Service area International tax law
What matters to you
Professionals returning to South Tyrol after years abroad, entrepreneurs moving the centre of their lives to Italy, or high-net-worth individuals with income from several countries: for all of them, moving to Italy can be attractive from a tax perspective.
Which regime is right depends, among other things, on your previous residence, your activity and the source of your income. We check the requirements and prepare the necessary evidence, ideally before you move.
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Tax incentive for employees and self-employed people relocating to Italy
The regime for people moving to Italy (regime degli impatriati) exempts part of the employment and self-employment income earned in Italy from income tax for several years. The current version applies to people who moved from 2024 onwards; earlier relocations remain subject to the conditions in force at the time.
The requirements include a minimum period of residence abroad before moving, a high level of qualification or specialisation, a commitment to remain resident in Italy for a certain period, and a cap on the income that qualifies for relief. Anyone who previously worked for the same employer or group must meet stricter requirements.
- Residence abroad for the period required by law
- High qualification or specialisation
- Activity carried out mainly in Italy
- Obligation to remain in Italy
- Income ceiling for the relief
Researchers and lecturers
Researchers and university lecturers who come to Italy after working abroad benefit from a dedicated tax incentive. It exempts a large part of their research and teaching remuneration from income tax and IRAP for several years.
Requirements include, among other things, documented research or teaching activity abroad for a certain period and the pursuit of that activity in Italy after relocating. Under certain conditions, for instance with minor children or the purchase of property in Italy, the duration can be extended.
Flat tax on foreign income
Individuals with substantial foreign income can opt for a lump-sum tax (Art. 24-bis TUIR, often referred to as the “flat tax for new residents”). Instead of ordinary income tax on foreign income, a fixed annual amount is paid, which can be extended to family members. Income earned in Italy continues to be taxed in the ordinary way.
The regime requires that the person was not resident in Italy for most of the years before the move. The amount of the lump-sum tax has been adjusted repeatedly. Whether the option pays off depends on the amount and composition of the foreign income; inheritance and gift tax issues also play a role.
What to consider when moving to Italy
The tax incentives require tax residence in Italy. Deregistration in the country of origin, registration with the Italian municipality and the move of your centre of vital interests should therefore be carefully planned and documented. If residence is not clear-cut, the incentive itself may be called into question.
Relocating can give rise to Italian filing and reporting obligations for foreign income and assets. Some special regimes provide exemptions. We therefore review the obligations and reliefs together with the chosen incentive.
Step by step
How we work together
Assess the situation
We discuss your previous residence, your activity, your income and your plans in Italy.
Review the provisions
We clarify which tax benefits are available to you and compare the expected tax burden.
Preparing your move
We plan the timing, compile the necessary supporting documents and handle the formalities with your employer and the tax authorities.
Support in the following years
We prepare your returns and discuss changes that may affect the relief with you, such as a change of employer, changes in your activity or moving abroad again.
Frequently asked questions
You should ideally clarify these questions before you move.
I am from South Tyrol and worked in Munich for a few years. Can I benefit from the incentive?
This is possible if you were tax resident abroad for the required period before returning and meet the other requirements, such as qualifications. It is important that you were actually resident abroad and not merely registered there. We review your documents before your return.
How long does the relief for new residents last?
The relief applies for the year of relocation and a statutory number of subsequent years. Anyone who leaves Italy before the required minimum period of residence has elapsed must expect the benefit to be clawed back. We plan the duration with you.
Can I combine flat-rate taxation with the relief for employees?
The regimes cannot be combined at will. Especially with the lump-sum taxation under Art. 24-bis TUIR, exclusions and the period of the respective option must be checked. We compare the permissible alternatives before you move.
When should I seek advice?
Ideally before you move or sign an employment contract in Italy. Some requirements can no longer be met after relocating, and the timing of the change of residence can determine the size of the tax benefit. A meeting a few months before the move is ideal.
How can we help you?
In the initial meeting, we clarify your request and discuss what support you need.