50% Tax break to attract “human capital” to Italy

The Italian Tax Agency has recently issued guidelines on the special tax regime designed to encourage the movement of “human capital” to Italy.

Article 16 of Legislative Decree 147/2015 provides, as from 2017, a tax break for individual employees and self-employed workers, know as “impatriated workers” who transfer their tax residence to Italy.

The law originally covered only employees and granted a 30% exemption.  There are 3 important new features introduced by the 2015 changes that take effect from FY 2016:

  • the regime has been has been rendered a structural part of the Italian tax system and is therefore fully operational;
  • the tax break has been extended to self-employed workers;
  • the exemption applies to 50% of  income earned from employment or self-employment.

If you been recently hired in Italy and you are not getting the benefit of the exemption, then please get in touch with us here.  We can speak to your employer, if necessary and run them through the rules.  If you are thinking of coming to Italy to work as an employee for an Italian company or self employed, this regime may be for you, as an alternative to one of the flat tax regimes.  Call us for a consultation.

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