The impatriate tax regime is one of the most advantageous tax tools available to those who decide to transfer their tax residency to Italy after spending at least two years abroad. Introduced to attract talent and human capital to the country, this regime has undergone significant changes in recent years that are important to understand before planning your move.
Who can access the impatriate regime
To benefit from the favorable regime, you must meet all of the following requirements:
- Not having been tax resident in Italy for the last 2 years (before the 2023 reform) or the last 3 years (for relocations from 2024 onward under the new rules)
- Committing to maintain tax residency in Italy for at least 4 years
- Carrying out work predominantly in Italy (as an employee, self-employed professional or entrepreneur)
- Meeting certain qualification requirements (a university degree or advanced qualification, depending on current rules)
Note: the rules for the impatriate regime were changed by Legislative Decree No. 209/2023, effective from 1 January 2024. Always check the current legislation or consult a professional before planning your move.
The tax benefit: how much you save
The main benefit is a partial exemption of taxable income:
| Scenario | Taxable income |
|---|---|
| Ordinary regime | 100% of income |
| Impatriate regime (2024 rules) | 50% of income (the other 50% is exempt) |
| With dependent children | Exemption up to 60% |
Practical example: An employee with a gross annual salary of €80,000 who qualifies for the impatriate regime is taxed on only €40,000. Given Italy’s progressive IRPEF rates, the net tax saving can be significant.
Duration of the regime
The regime applies for a period of 5 years from the transfer of residency to Italy, with the possibility of a further 5-year extension (for a total of 10 years) if specific requirements are met:
- Purchase of residential property in Italy before the end of the first application period
- At least one minor or dependent child
- At least three minor or dependent children (automatic extension with no other requirements)
How to apply
The impatriate regime is not requested through a formal application to the Agenzia delle Entrate: access is obtained through your tax return or, for employees, through written notice to your employer, who will apply the tax reduction directly in your payslip.
However, it is essential to carefully document your previous situation (foreign residency, activity carried out, AIRE registration if applicable) so you can demonstrate compliance with the requirements in the event of an audit.
The Italy-Brazil double taxation treaty
For Brazilian citizens relocating to Italy, the impatriate regime combines with the double taxation treaty between Italy and Brazil. This treaty determines which of the two countries has the right to tax different types of income (employment, capital, real estate, etc.), preventing the same income from being taxed twice.
Correctly applying both instruments together requires a case-by-case analysis.
Planning to move to Italy, or have you already changed your residency? Contact us to assess together whether the regime applies to your specific situation. We work in English, Italian, Portuguese and Spanish.