New requirements for impatriates from 2024
— 27 December 2023
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The Italian Government definitively approved on December 19, 2023 the legislative decree on international taxation. As a result, impatriates have new access requirements to the favorable tax regime starting from 2024, with the provision of a safeguard clause in favor of those individuals who had already planned their return to Italy during 2023.
Based on the new and final law text, the requirements are amended as follows:
- not having been tax resident in Italy during 3 fiscal years prior to their transfer in Italy;
- commitment to qualify as Italian tax resident for at least 4 years;
- exercising their working activity mainly in the Italian State territory;
- meeting law requirements for being considered as highly qualified or specialized workers.
If the work activity is carried out for the same entity who had employed the individual previously or for an entity belonging to the same Group:
- if the employee was not employed in Italy by the same entity or by an entity belonging to the same Group, the “non residency” years before the transfer rise to 6;
- if the employee was employed in Italy by the same entity or by an entity belonging to the same Group, the “non residency” years before the transfer rise to 7.
IRPEF and additional taxes apply on 50% of the employment, assimilated or self-employed income produced in Italy, for a period of 5 years and within the limits of 600,000 Euro gross per year, with the possibility of being exempted by 60% in the event of transfer in Italy with a minor child or in the event of the birth of a child or the adoption of a minor during the period of enjoyment of the impatriate regime.
The extension of the benefit from 5 to 8 years is only possible for individuals who transfer their registered residency in 2024 and 1) become owners by 31 December 2023 and, 2) in any case, in the twelve months preceding the transfer , of a residential real estate unit used as a main residence in Italy.
Impatriates therefore have new access requirements to the tax regime starting from the year 2024, while those who had already planned their return to Italy in 2023 can access the previous tax benefit by completing the registration with Anagrafe no later than 31 December 2023.
