Special Tax Regimes in Italy for Foreign Nationals and Returning Italians

Welcome to ItalianTaxes.com — your comprehensive guide to understanding and leveraging Italy’s tax incentives for expats, retirees, high-net-worth individuals, and returning Italian citizens. Italy offers several special tax regimes to attract international residents and reverse brain drain, offering significant tax benefits for eligible newcomers.
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Impatriate Tax Regime (Regime degli Impatriati)

Best for: Foreign employees, freelancers, or returning Italians relocating for work.
Main Tax Benefits:
50% of Italian-source income is tax-exempt (up to 60% with dependent children).
Maximum eligible income: €600,000/year.
Pre-2024 relocations: up to 90% exemption for Southern Italy.
Who Qualifies:
Must be non-resident for at least 3 of the previous 5 years.
Must become Italian tax resident and work primarily in Italy.
Duration:
5 years standard duration.
No renewals post-2024 (unless grandfathered under 2023 rules).
How to Apply:
Notify your employer or claim directly via Modello Redditi.
No advance ruling required.

€200,000 Flat Tax Regime for New Residents

Best for: High-net-worth individuals (HNWIs), global investors, and wealthy retirees with foreign income.
Main Tax Benefits:
Flat €200,000/year tax on all foreign-sourced income.
Add family members for an additional €25,000/year each.
No reporting of foreign assets, no IVIE/IVAFE, no inheritance/gift tax on foreign assets.
Who Qualifies:
Must be non-resident in Italy for 9 of the last 10 years.
Must become a tax resident in Italy.
Duration:
Up to 15 years.
How to Apply:
Elect the option in your Italian income tax return.
Optional: request an advance ruling from the Agenzia delle Entrate.

7% Flat Tax for Foreign Pensioners

Best for: Foreign retirees relocating to Southern Italy.
Main Tax Benefits:
Pay just 7% on all foreign income (pensions, investments, rental income).
No IVIE/IVAFE and no Quadro RW foreign asset reporting.
Exemption from inheritance/gift taxes on foreign assets.
Who Qualifies:
Foreign-sourced pension income.
Not tax resident in Italy for previous 5 years.
Must move to a town with ≤20,000 residents in eligible Southern or central earthquake-affected regions.
Duration:
Up to 9 years.
How to Apply:
Elect the option via Modello Redditi.
Calculate and pay 7% via F24 tax form.

90% Tax Exemption for Professors and Researchers ("Rientro dei Cervelli")

Best for: Foreign or expatriate academic professionals relocating for research or teaching.
Main Tax Benefits:
90% of income is exempt from Italian income tax.
Who Qualifies:
2+ years abroad in research or teaching.
Must move to Italy for a qualified academic role.
Duration:
6 years standard.
Extended to:
- 8 years if you buy a home or have 1 child
- 11 years with 2 children
- 13 years with 3+ children
How to Apply:
Claimed via employer payroll or in your tax return.
Self-certification often accepted.

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