Impatriate Tax Beneficial Regime in Italy
Italy is known for its culture and delicious food, but there’s another reason professionals are choosing to move: the Impatriate Tax Beneficial Regime. It’s a tax incentive that makes relocating to Italy financially attractive for international talent and returning Italian citizens.
The good news? The Budget Law 2025 has confirmed that the regime continues for another year, with the same conditions as introduced in 2024. So if you’re considering the move, the rules and benefits remain as they are, making it easier to plan ahead.
This initiative supports Italy’s economy and gives professionals the chance to reduce their taxable income for up to five years. Whether you’re a highly skilled expat looking for a new challenge or an Italian citizen thinking about moving back, it’s worth looking into.
In this blog, we’ll break down what the regime includes, who qualifies, and how to apply, so you’ll have all the info you need to make an informed decision.
What is the Impatriate Tax Beneficial Regime?
The Impatriate Tax Beneficial Regime is a fiscal incentive introduced by the Italian government. It aims to attract highly skilled professionals from abroad and encourage Italian citizens to return home.
Under this regime, only 50% of your employment income (or similar income) is subject to tax, with a maximum annual cap of €600,000.
The benefit starts in the tax year when you transfer your tax residency to Italy (in this case, 2024) and continues for the next four years. So you can benefit from reduced taxes for five years in total.
This initiative supports Italy’s economic growth while making the country more attractive to international talent.
Eligibility requirements
To qualify for the Impatriate regime, you must meet the following criteria:
- No tax residency in Italy for at least 3 years before your move.
- Commit to becoming a tax resident in Italy for at least 4 consecutive years.
- Start a new employment relationship in Italy. This must be with a different employer than the one you worked for abroad or with a company that’s not part of the same group.
- Work mainly in Italy during the relevant tax period.
- Have high-level qualifications or specialization, as defined by Legislative Decrees No. 108/2012 and No. 206/2007.
Additional rules for returning Italian citizens
If you’re an Italian citizen returning from abroad, you can also benefit, but a few extra conditions apply:
- If you’re registered with AIRE (the Registry of Italians Residing Abroad), you can qualify as long as you meet the general criteria.
- If you’re not registered with AIRE, you can still access the regime if you can prove fiscal residency in another country for the three years before your return. This must be under a double tax treaty between Italy and the foreign country.
These conditions aim to support Italians abroad who want to come back and contribute their skills to the local economy.
How to apply and key deadlines
Applying for the Impatriate Tax Beneficial Regime involves submitting a self-declaration to your employer. This declaration is officially called the Dichiarazione regime impatriati 2024.
Here’s what to know:
- The employer doesn’t need to verify the content of the declaration. It’s your responsibility as the employee to make sure you meet all the requirements.
- Getting professional help is strongly recommended. A tax advisor or accountant can:
- Confirm your eligibility
- Help you complete the self-declaration correctly
- Make sure you stay compliant with Italian tax law
Important: If you do not maintain tax residency in Italy for at least four years, you lose the benefits. In that case, the tax advantage already received must be repaid, with interest.
Why choose the Impatriate regime?
Here’s what makes this tax incentive attractive:
1. Substantial tax savings
Only 50% of your income is taxed, with a cap of €600,000 per year. That means more take-home pay, especially for highly skilled professionals and returning expats.
2. Long-term financial advantage
The benefit applies for five years, giving you stability and room to plan ahead.
3. Encourages global mobility
Italy is actively looking to attract international talent and support returning citizens. The regime aligns with the country’s broader goal to boost innovation and growth.
Make the most of it with Parakar
The Impatriate Tax Beneficial Regime continues to be a great opportunity for professionals and returning Italian citizens. But the rules and application process can be complex, and you don’t want to miss out due to paperwork.
At Parakar, we guide professionals and companies through the full process, from eligibility checks to compliance and payroll setup. Our local experts in Italy are here to help you make your move as smooth as possible.
Thinking of relocating to Italy or hiring talent there? Get in touch. We’ll take care of the admin so you can focus on the bigger picture.
