This is a fairly literal translation into English of the Italian legislation implementing the Impatriates Relief.
The text is given simply as a courtesy and should not be relied upon for any decison on whether the Relief applies in any particulalar cirmstances since it must be read togehter with subsequent amendments which may not be annotated here and together with Tax Agency guidance and court decitions interpreting the law. It also needs to be interpretated in accordance with certain pre-exisiting leglslation governing the “rientro dei cervelli” (anti-brain drain ) incentives.
Article 16. Special scheme for impatriated workers.
Effective from 01/05/2019
Amended by: Decree-Law of 30/04/2019 No. 34 Article 5.
1. Income from employment, income assimilated to employment and self-employment income produced in Italy by workers who transfer their residence to the territory of the State pursuant to Article 2 of the Decree of the President of the Republic no. 917 of 22 December 1986, are included in total income limited to 30% of their amount if the following conditions are met:
a) the workers have not been resident in Italy during the two tax periods preceding the aforesaid transfer and they undertake to reside in Italy for at least two years;
b) the work activity is prevalently performed in the Italian territory.
1-bis. The regime provided for by paragraph 1 shall also apply to business income produced by the individuals identified by paragraph 1 or 1-bis. who commence a business activity in Italy, starting from the tax period following the the period in force on 31 December 2019.
2. The income determination criterion referred to in Paragraph 1 shall also apply to the persons referred to in Article 2, Paragraph 1, of Law No. 238 of 30 December 2010, whose categories are identified taking into account the specific experience and scientific and professional qualifications with the decree of the Minister of Economy and Finance referred to in paragraph 3.
The criterion for determining the income referred to in Paragraph 1 shall also apply to citizens of States other than States other than those belonging to the European Union, with which a treaty for the avoidance of double taxation with respect to taxes on income or an agreement for the exhange of information with respect to taxes on income is in force, holding a a university degree, who have been continuously employed, self-employed outside Italy in the last twenty-four months or who have been continuously studying outside Italy in the last twenty-four months or more, obtaining a university degree or a postgraduate specialisation degree.
3. The provisions of this Article shall apply as from the tax period in which the transfer of residence in the territory of the State within the meaning of Article 2 of the Consolidated Income Tax Code, approved by Presidential Decree No. 917 of 22 December 1986, and for the following four subsequent periods. By decree of the Minister of Economy and Finance, to be issued within ninety days from the date of entry into force of this Decree, the provisions for the implementation of this Article shall be adopted, also with regard to the with regard to the provisions of coordination with the other existing concessions in force in the matter, as well as with regard to the causes of forfeiture of the benefit.
3-bis. The provisions of this Article shall apply for a further five tax periods to workers with at least one minor or dependent child, including in pre-adoptive foster care. The provisions of this Article shall also apply for a further five tax periods in the event that the worker becomes the owner of at least one residential property unit in Italy, after the transfer to Italy or in the twelve months preceding the transfer; the real estate unit may be acquired directly by the worker or by his spouse, cohabiting partner or children, inclduing via joint ownership. In both cases, the income referred to in paragraph 1 shall be included in taxable income limited to 50 per cent of its amount. For workers who have at least three underage children, including those in pre-adoptive foster care, the income referred to in paragraph 1 shall, in the five additional tax periods, be included in the total income up to 10 per cent of its amount.
4. Paragraph 12-octies of Article 10 of Decree-Law No. 192 of 31 December 2014, converted, with amendments, by Law No. 11 of 27 February 2015, is repealed. Individuals referred to in Article 2, paragraph 1, of Law 30 December 2010, No. 238, who have moved to Italy by 31 December 2015 shall apply, for the tax period in progress as at 31 December 2016 and the following year, the provisions of the same law within the limits and under the conditions set forth therein; alternatively, they may opt, in accordance with the procedures defined in a provision of the Director of the Tax Agency to be issued within three months from the date of entry into force of this provision, for the beneficial regime referred to in this Article .
5. In Article 2(1)(a) and (b) of Law No 238 of 30 December 2010, the words: “born after 1 January 1969” are repealed.
5-bis. The percentage referred to in paragraph 1 shall be reduced to 10 per cent for persons transferring their residence to one of the following regions: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, Sicily.
5-ter. Italian citizens not registered with the Register of Italians Residing Abroad (AIRE) who return to Italy starting from the tax period following the period in progress on 31 December 2019 may access the tax benefits referred to in this Article provided that they have been resident in another State within the meaning of a treaty for the avoidance of double taxation on income for the period referred to in paragraph 1 (a). With respect to taxable periods for which tax assessments have been served which are still subject to appeal or which are the subject of litigation pending at any stage and any level of proceedings as well as for tax periods for which the time limits under Article 43 of Presidential Decree No. 43 of 29 September 1973 have not expired, Italian citizens not registered with AIRE who have returned to Italy by 31 December 2019 shall be entitled to the tax benefits referred to in this Article in the text in force on 31 December 2018, provided that they have been resident in another State within the meaning of a treaty against double taxation on income for the period referred to in paragraph 1(a). In any event, there shall be no refund of taxes paid pursuant to a spontaneous compliance procedure.
Law no. 238 of 30/12/2010
Art. 2. (Characteristics of beneficiaries)
Text applicable from 07/10/2015
Amended by: Legislative Decree of 14/09/2015 No. 147 Article 16.
1. The following shall be entitled to the tax benefits referred to in Article 3:
a) European Union citizens in possession of a university degree, who have resided continuously for at least twenty-four months in Italy and who, although resident in their country of origin, have continuously carried out an activity as an employee who have been employed, self-employed or engaged in a business activity outside Italy for the last 24 months or more and who are hired or start a business activity or self-employment in Italy and transfer their domicile, as well as their residence, to Italy within three months from the date of hiring or starting the activity;
b) citizens of the European Union who have resided continuously for at least twenty-four months in Italy and who, although resident in their country of origin, have been continuously engaged in an activity outside of that country and Italy for the last twenty-four months or more, obtaining a university degree or a post-graduate specialisation, who are hired or start a business or self-employment activity in Italy and transfer their domicile, as well as their residence, to Italy within three months from the hiring or the start of the activity. (Further explanation in Para 1127 of article 12 of Law 178 of 30/12/2020]
2. With a decree of the Minister of Economy and Finance, to be issued within sixty days from the date of entry into force of this Law, the categories of the persons referred to in paragraph 1 shall be identified, taking into account the specific experience and scientific and professional qualifications, and ensuring that no new or greater burdens are caused for the public finance.
Article 1 Paragraph 1127
In force from 01/01/2021
1127. Article 2(1)(b) of Law No. 238 of 30 December 2010 is to be interpreted as meaning that the physiological interruptions of the academic year do not preclude access to tax incentives for students who decide to return to Italy after having continuously pursued a study activity abroad.
Article 1 Decree of 03/06/2011 – Min. Economy and Finance
Article 1 Categories of persons benefiting from tax benefits
Effective from 10/06/2011
1. The tax benefits referred to in Article 3, paragraph 1 of Law No. 238 of 30 December 2010 shall apply to EU citizens born after 1 January 1969 who are employed or start a business or self-employment activity in Italy by transferring their domicile and residence therein within 3 months from the date of hiring or starting the activity and who on 20 January 2009
(a) are in possession of a university degree;
b) have resided continuously for at least 24 months in Italy;
c) in the last two years or more, have resided outside their country of origin and Italy, continuously carrying out an employed, self-employed or business activity there.
2. The beneficiaries of the same benefits referred to in paragraph 1 shall also include EU citizens [born after 1st January 1969 – text repealed] who are employed or start a business or self-employment activity in Italy by transferring their domicile and their residence therein within 3 months from the date of hiring or starting the activity and who on 20 January 2009
(a) have resided continuously for at least 24 months in Italy
b) in the last two years or more, have resided outside their country of origin and Italy, obtaining a degree or a post-graduate specialisation there.
3. Excluded from the benefit referred to in paragraph 1 are those persons who, being holders of employment relationships of indefinite duration with a public administration or an enterprise established under Italian law, carry out their work activities abroad.
4. The implementation of the present Decree shall not give rise to new or greater burdens on the public finance.
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