In 2016, the Italian government decided to boost the presence of working expats in Italy and encourage expatriate Italians to return with a tax credit of 50% of the income tax payable in Italy for  5 years.
If you moved to Italy in 2015 you can still qualify for the tax credit.

Who can qualify?

The tax credit is available for individuals who either:
  1. Have a college degree (ex art. 2 L. 238/2010);
  2. Are employed and have managing power;
  3. Are self-employed.

Individuals holding a University degree must meet the following criteria:

  1. Possess a University degree in Italy or abroad;
  2. Have worked or studied for the last 24 months (or more) abroad;
  3. Be a EU or a foreign citizen;
  4. Be employed or self-employed in Italy.

Employees with managing power ​must meet the following criteria:

  1. ​Work for an Italian based company (or an Italian Permanent Establishment of a foreign company);
  2. Have a managing position or a high qualified role*;
  3. Be resident abroad in the previous 5 tax years;
*You don't need to be a manager to qualify for the benefit; you just need to have managing duties in your employment contract.

Self employed individuals must meet the following criteria:

  1. Register for partita IVA in Italy;
  2. ​Be resident abroad in the previous 5 tax years;

How does it work?

Taxable income is reduced by 50% for 5 years.​

Normally, if your taxable income is € 70,000.00 then your tax bill would be around € 23,500.00
But the tax credit allows you to pay taxes on just 50% of your taxable income, so your taxable income becomes €35,000.00, and the tax payable is reduced to € 10,000.00.

The credit can be applied retroactively. If you moved to Italy in 2016 and have already filed your taxes, you have until November 30th, 2020 to request a refund from the tax office.

If you miss the deadline you cannot recover the extra tax paid, but you might still be able to qualify for the regime in upcoming years.

How can we help you?

  • Assessing if you qualify for the tax benefit;
  • Providing support for the Migration process;
  • Applying for the tax credit;
  • Refunding tax paid in previous years.
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